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.
Wayne Michigan Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership is a legal document that outlines the terms and conditions of transferring the ownership rights and membership of a cooperative apartment in Wayne, Michigan. This agreement is designed to protect the interests of both the assignor (current owner) and assignee (new owner) by clearly specifying the transfer process and responsibilities associated with it. The agreement includes various relevant keywords such as assignment, proprietary lease, cooperative apartment, and membership. It ensures that all parties involved in the transaction fully understand their rights, obligations, and liabilities. It also helps in preventing any misunderstandings or disputes that may arise during the assignment process. There might be different types or variations of the Wayne Michigan Agreement to Assign Proprietary Lease of Cooperative Apartment and Membership based on specific requirements or circumstances. These could include assignment agreements for different types of cooperative apartments in Wayne, such as single-family homes, townhouses, or condominiums. Each type of agreement may have specific clauses relating to the property's unique features, rules, regulations, and governing documents. Additionally, the agreement may vary depending on whether the cooperative apartment is fully paid or subject to an existing mortgage. Key sections or clauses commonly found in this agreement include: 1. Parties Involved: Clearly identifies the assignor, assignee, and any other relevant parties participating in the assignment. 2. Property Description: Provides a detailed description of the cooperative apartment being assigned, including its address, unit number, and any unique identifiers. 3. Assignment Terms: Outlines the terms and conditions of the assignment, such as the effective date, duration, and any fees or consideration involved. 4. Representations and Warranties: States that the assignor has the legal right to transfer the proprietary lease and membership and that the apartment is free from any liens or encumbrances. 5. Responsibilities and Liabilities: Defines the responsibilities of both parties during and after the transfer, such as maintenance obligations, payment of dues, and adherence to cooperative bylaws. 6. Governing Law: Specifies that the agreement is governed by the laws of Wayne, Michigan, ensuring uniformity and consistency. 7. Termination or Default: Outlines the circumstances under which the agreement can be terminated or considered in default, and the remedies available to the aggrieved party. It is important to consult with legal professionals or real estate experts familiar with Wayne, Michigan laws to ensure the agreement complies with all applicable regulations and addresses specific requirements for cooperative apartment assignments in the area.
