Cooperative Purchase Agreement
Introduction
A cooperative purchase agreement is a legal contract between a buyer and a cooperative housing corporation for the purchase of shares in the corporation, which entitles the buyer to occupy a specific unit within the cooperative property. This agreement outlines the terms and conditions of the sale, including the purchase price, financing details, and any contingencies that must be met before the sale can be completed.
Key Terms and Conditions
- Purchase Price: Specifies the agreed-upon price for the shares in the cooperative housing corporation.
- Payment Terms: Outlines the schedule and method of payment, including any deposits, financing arrangements, or seller financing.
- Share Description: Provides a detailed description of the shares being purchased, including the specific unit and any associated rights or responsibilities.
- Cooperative Rules and Regulations: Includes adherence to the cooperative's bylaws, rules, and regulations, which govern the operation and management of the cooperative property.
- Approval Contingency: Includes a contingency clause stating that the sale is subject to the approval of the cooperative board of directors.
Buyer's Responsibilities
- Financing: Secures financing for the purchase of the shares in the cooperative housing corporation, as outlined in the agreement.
- Cooperative Approval: Provides any required documentation and undergoes any interviews or background checks required by the cooperative board of directors.
- Insurance: Obtains insurance for personal property and liability, as the cooperative's master insurance policy, typically covers the building structure and common areas.
Seller's Responsibilities
- Title and Ownership: Provides clear and marketable title to the shares in the cooperative housing corporation.
- Cooperative Documents: Provides copies of the cooperative's bylaws, rules, and regulations to the buyer for review.
- Cooperative Approval: Facilitates the buyer's approval process with the cooperative board of directors.
Closing Process
- Closing Costs: Specifies which party is responsible for covering various closing costs, such as transfer taxes, attorney fees, and any cooperative fees.
- Share Transfer: Completes the transfer of shares and occupancy rights to the buyer, as approved by the cooperative board of directors.
A cooperative purchase agreement is a critical document that governs the purchase of shares in a cooperative housing corporation. It ensures that all terms of the sale are clearly defined and agreed upon, leading to a successful and satisfactory real estate transaction for both parties.
