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Who gets Coop Abatement after sale of the unit Jan 05, 2020

The unit I sold beginning of 2019 got the 2019/2020 Coop Abatement but when it was disbursed to the unit, I was no longer a shareholder. The buyer received the credit.
I read articles and answers about the Coop Abatement on this site and found the following:

the abatement doesn't belong to the co-op. It's one of the few things that actually belongs to the individual shareholders.

I have a copy of the benefit letter that was sent from DOF to the coop. My name was listed as the Owner.

Can I claim the abatement is mine even though I’m no longer the shareholder.

The management said the abatement stays with the unit hence the new shareholder.
Incidentally the new shareholder would not be eligible to receive it by definition. Nor will they be next tax year because of sale date.

If this is correct, do you know of any legal precedent that we can refer to?
Coop bylaws makes no mention of a case like this.

Thank you for any advice you can give.

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Co-op Abatement After Sale of Unit - Queens Jan 05, 2020

This is from the DOF website. It looks like the Star abatement remains with the unit until not the previous owner until the end of the tax year.

https://www1.nyc.gov/site/finance/benefits/landlords.page

Exemptions (FAQs)
Must I report the sale of my property?
Adjustments to exemptions are automatically made as a result of the sale of your property. The recording of the deed, except for a life estate deed, will revoke the following exemptions: Basic or Enhanced School Tax Relief (STAR) Senior Citizen Homeowner Exemption (SCHE) Disabled Homeowner Exemption (DHE) Veterans or Clergy Exemption

When will the automatic adjustment from the sale of my property go into effect?
The STAR exemption remains on the property until the end of the tax year (June 30). All other exemptions listed above, are canceled as of the next quarter after filing. Deed recordings require no action by a seller.

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Coop abatement after sale if unit - OG Jan 07, 2020

@queens Thank you for your reply!
What I really want to know is about the Coop Condo Abatement.
I am still searching for legal precedents if it remains with the unit or not.

Thanks!

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Co-op Abatement After Sale of Unit - Queens Jan 07, 2020

You can not claim these benefits they remain with the unit until the above expiration dates.

I have provided a link to the DOF online inquiries for abatements and exemptions.

Their response time has greatly improved or maybe I have just been lucky.

Hope this helps..


https://nycdepartmentoffinance.dynamics365portals.us/SignIn?ReturnUrl=%2Fcreate-case%2F%3Ftopic%3DCo-OpCondoTaxAbatement

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Co-op Tax Abatement - Marty Jan 08, 2020

I believe that you are entitled to receive the co-op tax abatement because it was your primary residence at the time in question. I think your management company is incorrect.

If the DOF listed you as the owner, then you are entitled to the money. Hang on to that letter from the DOF to the co-op that states you are the owner.

The co-op receives a lump sum for the abatement which is then distributed to the OWNERS who were living there during the time frame in question. Your DOF letter verifies this.

However, it seems that the problem here is with the management company. Even though you're no longer the owner, you were the owner during the abatement period in question.

You may need to consult with an attorney since the management company doesn't seem to be cooperative about the situation, but you were the owners during the abatement period. That's who gets the abatement. The owners during the abatement period.

Seems like the management company just needs to give you a check for the lump sum abatement owed you, and then recover the money from the new owners who incorrectly received YOUR abatement. But, that's their problem, not yours, and they created the problem in the first place.

I'm guessing that the management company doesn't want to be bothered with the extra work, so that's why they don't want to do it.

Good luck!

Stick to your guns. The abatement belongs to you.

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Co-op Tax Abatement - OG Jan 09, 2020

@queen
Thank you for the link. I sent an inquiry yesterday. Hope to hear from them soon.

@Marty
Thank you for your input!
What you said is exactly how I feel and thank you for your encouragement.

I purchased and sold a coop in the same month, January 2019, but both were after 1/5.

I realized that I lost my abatement when I received the maintenance bill in April from the new coop. Since the previous owner of the new coop was an investor, there was no abatement left for me, but of course there was the assessment. I had to pay it out of pocket.
Closing was after 1/5 & I missed the status date, so there was no abatement for the current tax year, so I will have to pay another assessment out of pocket again in April.
In the meantime, the Purchaser of the old coop received last year's and will receive the current tax year's abatement, because I was the qualified owner on 1/5, 2019.

We didn't discuss about the abatements at closing, but our sales contract has the following rider.

In the event that there is any refund on any real estate taxes which is attributed to the time period in which Seller owned the unit, such refund shall belong to Seller.
Purchaser agrees to cooperate with Seller in connection with obtaining such refund. If such refund is delivered to Purchaser, Purchaser agrees to hold same in trust and to promptly remit
such refund to Seller. This provision shall survive Closing for one (1) year.

So, I contacted the Purchaser but their lawyer answered that the Purchaser didn't receive a check, only a credit and that was offset by assessment so they gained nothing.
I think this is an irrelevant argument, but what the Purchaser's lawyer is saying it that because they didn't take the money but the management company gave it to them, they owe me nothing and receiving the credit was not their fault.

I found the following letter in the closing package of my current management company, Douglas Elliman.
https://www.ellimanpm.com/package_templates/927d9b71ad6fcac483c7a461204e7967057a9901/preview?resource_id=319

I wish my old management company had this kind of letter at closing so that my lawyer or I wouldn't have forgotten about the abatement.
There must be a reason why Douglas Elliman has this letter for both seller and purchaser to sign.
They don't want to have an issue like I am having.

I will contact the old management company again requesting legal resources if they believe the abatement should stay with the unit and the new owner is entitled to receive it.
I know that's what's happening everywhere, but until I see the legal precedent, I don't want to give up my abatements. It's almost 5K.

My point is simple.
The Purchaser would not have been able to benefit from the Abatement, had we not been eligible residents last year and this year.

I am sharing my story for someone who encounters the same problem as I have.
I will keep you updated.

Thanks again for your support.

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Abatement After Sale of Unit - Queens Jan 09, 2020

OG, thanks for sharing your story. I found it very informative and know it will help others. I wanted to ask you about the January 5th date. In the end the few extra$$$ are not worth the aggravation...

Happy that you found the the link helpful. I had an answer in 48 hrs. Also, when all else fails

Marcel Dixon
NYC Department of Finance│External Affairs
2120602-7004-212-602-7050

DixonM@finance.nyc.gov
Regards,
Queens

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Abatement after Sale of Unit - Queens Jan 09, 2020

BTW, I am not making light of the "Principal". Had you been aware, you could have sold your unit for $5,000 more. I have gone to battle for much less $$$ so keep on Truckin!!!

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