Is there any legal problem with a de-escalating flip tax, one that is lower the longer ou've held the unit?

Asked by Anti-fllipper, Gramercy Park, New York, NY Tue May 24, 2011

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Anna M Brocco, Agent, Williston Park, NY
Wed May 25, 2011
For any legal advice needed, do consult with an attorney who specializes in real estate; changes would need to be voted in...
0 votes
Klara Madlin, Agent, NY,
Wed May 25, 2011
many co-ops have this . It needs to be voted on, if it is not in your original offering plan than usually there needs to be a vote by two thirds of the share holders to pass any flip tax changes. Board needs to check the prospectus before making this kind of a rule
0 votes
Mitchell Hall, Agent, New York, NY
Tue May 24, 2011
Hi Anti Flipper,

Not that I know of but I think a de=escalating flip tax is a fair way to impose a flip tax. The flip tax was originally introduced back in the 70's/80's when buildings were converting to dissuade insiders from "flipping."

The longer a shareholder has held their unit, the longer they have contributed to the coop through maintenance and assessments.

Mitchell Hall, Associate Broker
The Corcoran Goup
mhall@corcoran
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