What does this clause mean: “In the event of an exchange or no-consideration transfer, the flip tax is not triggered?”
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Does the meaning of resident in the context of a Coop board eligibility requirement include only shareholders that reside in the coop full time. Are shareholders with a primary residence elsewhere considered residents.
What can be done if the Board of Directors of a Mitchell Lama Coop violates the new Mitchell Lama Reform Law 6412 and inform shareholders of 782 units that until they have a directive from HPD they can swim around the law?
That will continue to use proxies to achieve a quorums not use names of Directors on the minutes when they vote on coop business . Thank you
The unit above me has a brown spot on their ceiling. They are new owners and have asked the manager to check the matter. He told them he would but has not made any arrangements for an inspection. I have lived in this building for 25 years and the roof has never been replaced. they have repeatedly asked for someone to check this out but are being ignored. What would the next step be?
> Join the conversation Comments (1)Anyone aware of the pros and cons of a coop board requiring shareholders to agree to a hold harmless agreement for simple contractor work - like carpet cleaning? Thanks.
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Lately, some of my shareholders who are looking to refinance and at least one new purchaser have approached the board with requests to increase insurance coverage limits. What I don't understand is, the increased coverage amounts are minuscule. For example, one ReFi requested an increase in Fidelity Bond (theft and embezzlement) from $435K to $450K. Another was for a D&O increase for some similar small amount.
Has anyone on here been hit with these kinds of requests? If so, how did you handle them with your shareholders, and also with the offending.... errrr... requesting banks? If you said or did something that worked and caused the bank to forego their increase request, please post it on here so the rest of us can benefit.
Thanks!
--- Steve
I was a holder of unsold shares in a coop. One of the benefits of that status is not being subject to the coop's flip tax. Then, 23 years after I purchased the apartment I moved in. That triggered loss of unsold share holder status. Now, 13 years later, I am selling the apartment. Our Coop has a flip tax based on profit. Do I use the initial purchase price (from 36 years ago) or measure the value of the apartment at the time of loss of holder of unsold share status in computing the flip tax?
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My Mom is refinancing her co-op. She is almost done with the process and the management company emailed her today saying she had fill out a refinance application before the recognition agreements were signed. I said to her “wth is that?” She showed me the application and its a blank financial statement as if she buying a co-op asking for all financials credit report and asking for $250 application fee. I told her don't fill it because there is no reason to give this info when she is already a shareholder.
There is nothing in the by-laws, proprietary lease talking about this. She already paid $500 for the questionnaire which ok.
Has anybody every heard of refinance application required by management?
Does anyone know if there is a time frame to clean out a unit by the beneficiaries once the owner has passed?
> Join the conversation Comments (1)Hey All, we've had two shareholders recently want to add and remove a family member from their stock certificate. In both cases the transfer attorney our co-op employees charged them $5,000. This seems like an outrageous amount of money to me. Our Treasurer who is friendly with the transfer attorney said it was possible that recent changes in how co-op shares are treated for tax purposes may have led to the high bill. But I've been doing research online and cannot find a single article mentioning this change. Is there a validity to this or are our shareholders being gouged.
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I Am Not A Lawyer, but I believe it means that if the shares are transferred from one owner to another without "consideration" (without money changing hands), the co-op cannot collect any flip tax or transfer fees.
An example of this kind of transfer would be if someone inherits the share of a co-op apartment as a bequest or residuary beneficiary, they would not have to pay the flip tax normally imposed on the purchase transfer of the shares.
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