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Mochanet, Both Buyer and Seller in Brooklyn, NY

If you purchase a coop unit from a sponsor not required to pay the coop's flip tax are you the new owner exempt from paying a flip tax if you

Asked by Mochanet, Brooklyn, NY Tue Sep 11, 2012

sell?

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7
BEST ANSWER
Hi Mochanet

In General after you have purchased a sponsor's unsold shares for a specific apartment in a co-op, those shares are no longer Unsold (Since you purchased them). Because of this you do not retain the same rights that the Sponsor enjoyed. Your apartment becomes classified as Owner Occupied and you are beholden to all the rules in the proprietary lease and offering plan that apply to Owner Occupied shares. This is the long way of saying that you are not exempt from paying the flip tax (if there is one) in the building that you purchased into.

I hope this helps,

Please let me know if you have any other questions.

JOE GREENE
Broker/Owner
WEICHERT,REALTORS - House & Home
609 Kappock Street
Suite 1A
Bronx, NY 10463
(718) 432-5000 (Office)
(718) 432-2091 (Fax)
(917) 974-2600 (Cell)
http://www.WeichertWorks4U.com
joegreene@weichert.com
2 votes Thank Flag Link Tue Sep 11, 2012
If it's part of your proprietary lease you and you do not have the same privilege as the previous owner, then yes you will have pay when you sell.
1 vote Thank Flag Link Tue Sep 11, 2012
when you are buying from a sponsor, you are usually paying transfer tax...not flip tax
flip tax is paid on re-sale transactions, i.e. is triggered after they have been sold by the sponsor and are sold again.
0 votes Thank Flag Link Sat Sep 22, 2012
Purchasing a sponsor unit will not neccessarily alter the status of the shares from unsold to sold. If you do not actually use the property as a residence, it MAY still be considered UNSOLD. Your attorney is the appropriate person to ask. If you are purchasing as a residence for yourself, it is definitely going to change the status. If you are not, it is a legal question. Joyce Mincheff, The Corcoran Group, VP, Associate Broker, 917-517-8572.
0 votes Thank Flag Link Wed Sep 12, 2012
Once an apartment is sold to a bona fide purchaser for use as their residence or as an investment, any further transfers of the apartment are subject to the conditions imposed on such transfers including a flip tax and board approval. Only the sponsor and (usually) a holder of unsold shares arre exempt from such requirements.

Michael Richman
Licensed Real Estate Associate Broker
Bellmarc Brokerage, Ltd.
681 Lexington Avenue
New York, NY 10022
Phone 212-688-8530 x223 Cell 917-991-2528 Fax 212-758-7495
Email mrichman@bellmarc.com
0 votes Thank Flag Link Wed Sep 12, 2012
Review the related co-op documentation with your attorney; thereafter a determination can be made.
0 votes Thank Flag Link Tue Sep 11, 2012
If it's an HDFC Coop, no one is exempt from paying the Flip Tax - it should be stated in the Proprietary Lease. If it's a private Coop, each Board is different on this issue (Review the Proprietary Lease).
0 votes Thank Flag Link Tue Sep 11, 2012
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