4221 - Method for transferring a cooperative interest. - Pennsylvania Statutes

§ 4221. Method for transferring a cooperative interest. (a) General rule.--In order to effectuate the transfer of a cooperative interest, the transferor, the transferee and the association shall execute an instrument which may be recorded in the same manner as a lease and which must include the following: (1) The names of the transferor and transferee. (2) A description of the unit that is the subject of the proprietary lease included in such cooperative interest, which description shall contain the items required by section 4204 (relating to description of units). (3) Language evidencing an intent to transfer the cooperative interest, which may include: (i) An assignment by the transferor, by endorsement or otherwise, of the instrument, if any, used to evidence the ownership of the cooperative interest, including, but not limited to, a stock or membership certificate. (ii) The transfer of the cooperative interest on the books of the association. (iii) An assignment of the transferor's interest in the proprietary lease that is part of the cooperative interest being disposed of. (4) Joinder by the association for the purpose of: (i) Acknowledging such transfer on the books of the association. (ii) Stating the amount, if any, of any unpaid common expense or special assessment currently due and payable from the transferor. (iii) Stating whether or not such transfer violates any rights of the association restricting the alienation of the cooperative interest or restricting the amount for which the cooperative interest may be sold or restricting the amount that may be received by the transferor upon such sale. (b) Rights and liabilities of transferee.--The transferee shall not be liable for any unpaid assessment or fee greater than the amount set forth in the instrument nor shall the transferee be bound by any restriction in favor of the association which is violated as a result of the transfer but which is not stated as having been violated in the instrument.