CO-OP PROPRIETARY LEASES – A GUIDE TO SELLING
Cancelling a proprietary lease and stock certificate in a cooperative association in New Jersey typically involves a series of legal and administrative steps. Keep in mind that this process can be complex, and it is advisable to consult with an attorney who specializes in real estate or co-op law in New Jersey to ensure you follow all the necessary procedures correctly.
Here are the general steps you might need to take:
1. Review Your Co-op Agreement: Start by reviewing your cooperative agreement or bylaws. This document will outline the specific rules and procedures for cancelling your lease and stock certificate. It may also specify any penalties or fees associated with termination.
2. Consult an Attorney: Consult with an attorney who is knowledgeable about cooperative law in New Jersey. They can help you understand your rights and responsibilities and guide you through the process.
3. Notify the Board: Typically, you will need to notify the cooperative association’s board of your intention to cancel your lease and stock certificate. This notification should be in writing and include the reasons for your decision. It’s important to follow any notification requirements outlined in your cooperative agreement.
4. Request a Buyout or Sale: In some cases, you may be required to sell your shares and proprietary lease to a new buyer, as specified in your cooperative agreement. The board or management company may assist in finding a suitable buyer.
5. Pay Outstanding Fees: Ensure that you have paid any outstanding fees or dues and settle any financial obligations to the cooperative association.
6. Formal Termination Agreement: Work with your attorney to draft a formal termination agreement. This agreement should outline the terms and conditions of your lease and stock certificate cancellation, as well as any financial arrangements.
7. Submit Paperwork: Submit all required paperwork and agreements to the cooperative association and the appropriate government authorities, if necessary.
8. Transfer of Stock Certificate: If required, transfer your stock certificate to the new owner. This typically involves a legal and financial process.
9. Notify Lenders and Creditors: If you have any outstanding mortgages or loans related to your cooperative unit, notify your lenders and creditors of your intention to cancel the lease and stock certificate. This may involve paying off the mortgage or transferring it to the new owner.
10. Finalize the Cancellation: Once all necessary steps are completed and approved by the cooperative association, your proprietary lease and stock certificate will be officially cancelled.
Remember that the specific requirements and procedures can vary depending on your cooperative association’s rules and regulations, so it’s crucial to consult with legal professionals to ensure a smooth and legally compliant process.
Thomas C. Martin, Esq.,
Partner,
Price, Meese, Shulman & D’Arminio, P.C.
October 19, 2023
