An apartment cooperative will typically involved a corporation renting apartments to people who are also owners of stock in the corporation. The apartment complex is owned by the corporation.
Two basic documents are ordinarily involved in the transfer of a member's or stockholder's interest in a cooperative apartment corporation: (1) an agreement for the purchase and sale of the proprietary lease and the appurtenant membership or stock; and (2) the instrument of assignment.
The agreement of purchase and sale is similar in format to an agreement for the sale of real property. The seller agrees to assign all rights under the proprietary lease covering the unit, and to sell the membership or stock in the corporation. The seller also agrees to procure the consent of the corporation to the transfer if this is required in the proprietary lease. The purchaser agrees to pay the purchase price and to submit references to the corporation and otherwise cooperate in procuring its consent to the transfer, and also promises to execute an agreement in a form approved by the corporation by which the purchaser assumes and agrees to be bound by all covenants and conditions of the proprietary lease.
The instrument of assignment does not differ materially from an ordinary assignment of a lease of real property, except that the assignor's interest in the membership or stock in the corporation is assigned together with interests under the proprietary lease. Ordinarily, the assignor declares that there are no liens or other claims outstanding against the lease or the shares to be assigned, that there are no undischarged bankruptcy proceedings or unsatisfied judgments or tax liens outstanding against the assignor, and that the assignor has full right and authority to assign the lease and shares.
The Texas Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership is a legal document that pertains to the transfer of rights and responsibilities within a corporation relating to the assignment of a proprietary lease and membership consent. This document is crucial in ensuring a smooth and legally valid process of transferring ownership or interest in a corporation. When executing a Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership, certain keywords become pertinent in understanding its implications and different types. Some of these keywords include: 1. Assignment: The term assignment refers to the transfer of the lease or membership rights from one entity to another. This document ensures that the assignment is properly authorized and binding. 2. Proprietary Lease: A proprietary lease is a legal agreement that grants an individual the right to occupy and use a specific property within a cooperative corporation. This consent is necessary when the lease is being transferred to another party. 3. Consent: Consent is an essential element in this type of document, as it refers to the corporation's approval or permission for the assignment to occur. Without consent, the transfer may be deemed invalid. 4. Membership: Membership denotes the individual or corporate entity's status within the cooperative corporation. The consent of the corporation is crucial for any changes to the membership status. 5. Co-op Corporation: The consent mentioned relates explicitly to a cooperative corporation, which is a type of legal entity that owns and operates a multi-unit residential property. The corporation manages the property collectively on behalf of its shareholders or members. Different types of Texas Consent of Corporation to Assignment of Proprietary Lease and Consent to Membership may exist based on the specific circumstances and requirements of the involved parties. However, the keywords mentioned above are generally applicable to all scenarios involving the transfer of a proprietary lease and membership consent within a Texas cooperative corporation. It is important to consult legal professionals or experts in Texas corporate law to ensure compliance and accuracy in executing this document.
