I totally agree you need an attorney he/she will look over the finanicals and make suggestions accordingly. I'll be more then happy to recommend an attorney if you need one and don't hesitate to withdraw the offer if decide to do so. Good luck!!!

Marty -

The flip tax is common in newly converted coops...howEVER, when you see sketchy financials, like a huge back-owed amount that could put a lien aka foreclosure against the building, that's a big giant red flag.

Don't go through with a sale unless you've figured out how and what exactly, the building has done or is in the process of doing to remedy the financials.

A distressed building that is in dire need of cash might have no problem misrepresenting what they "will have forgiven" or what they've been told will happen "if they comply" -- but if they have no evidence that they are complying, in the process of paying it off, or have no liaison for the city that will attest to be in a working agreement with them, WATCH OUT.

That money from the sale will help them - and they want it to - but it won't mean much if your daughter winds up in a foreclosed home. Despite her purchase, she could find herself a renter if its sold by the city in a third-party transfer, and that would be ugly!

UHAB is a nonprofit that works to support and stabilize buildings. We offer outreach and technical services to buildings facing foreclosure and help them have their tax rolls wiped clean, but only if they agree to do the steps we assign them. That includes taking out a mortgage, sometimes, on the building, evicting latent shareholders for nonpayment, and upping the current rents.

Frequently, buildings find such measures too daunting, and then, even if they do go along, that might mean tripling a maintenance that at face value, to a new buyer, looked very low.

So another problem is, she could wind up buying in a unit and then the monthly rent she'd budgeted to be quite low triples. Or, ten neighbors are booted and its half-empty. Air on the safe side - either contact UHAB to see if they're in a workout plan, or look elsewhere.

Marty,

It doesn't sound as if you're working with a real estate attorney. In Manhattan, it's common for buyers and sellers to have their own separate attorneys in real estate transactions, such as this. These are questions to pose to your attorney. Good luck and if you decide to withdraw your offer, please consider working with a Realtor. Realtors can guide your daughter throught the process of buying in a co-op, from offer to closing. Your daughter's broker's commission is usually built in the asking price of the unit. Feel free to contact me with any additional questions.