Home Selling in 11205>Question Details

Cummingskl, Home Seller in Brooklyn, NY

I currently. Live in an affordable Cooperative apartment in BKLYN, NY. We are in the process of receiving information from the Board of Directors via

Asked by Cummingskl, Brooklyn, NY Thu Dec 12, 2013

board meetings about updating our occupancy agreement and by-laws to allow the cooperators to transfer or sell their apartments for the market value; however, there is a sale fee which will be voted on soon to be an amount equal to 50% of the the resale price. This amount is payable to the Corporation. After the dwelling unit is vacated and the Corporation performs such inspections and repairs as deemed necessary, the balance of the resale plus cost of any repairs are deducted and the balance is paid to the seller of the unit. For example, if my unit goes for $50K, my resale fee is $25k plus any repair costs to the unit.
My question is, is this normal practice in coop's?

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Answers

3
Dear Cummingski:

What your describing does not sound right, fair or logical. I suspect you may be leaving out important details or mistaken. Quite often a co-op will have a flip tax or transfer fee that a seller typically pays when they sell their co-op. However, if these fees are too high, it diminishes the value and desirability of the co-op and hence will lower the sales prices in that particular co-op.

Such policies do benefit the co-op and the co-op owners because they bring in more money to the co-op which comes at the expense of people leaving as opposed to people staying. But if those fees are too high it can render your co-op unsalable down the road! You need to investigate further.

Tread cautiously. If you have more questions or want to discuss this further, please contact me direct. good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales/ e-Pro Realtor
Fillmore Real Estate
Office: (718) 252-2000/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
1 vote Thank Flag Link Fri Dec 13, 2013
Thank you for your expert advice.
Flag Sun Dec 15, 2013
Hi -

I can't say that it isn't possible, but I have never heard of such practice in co-ops. Unless I am mistaken, what you're describing would imply a flip tax of 50%. I have heard of 30% but that was in specific buildings over a long period of time. If you would like to speak about it over the phone, feel free to email me directly and let me know when you are available.
1 vote Thank Flag Link Thu Dec 12, 2013
Hi... my name is Meagen O'Brien, and I work with Charles Olson on the Run NYC team. Please feel free to email this information to me directly at meagen@runnyc.com and I will offer my answer then.

Thank you.
0 votes Thank Flag Link Thu Dec 12, 2013
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