if you allow this

Just my opinion

Someone in my coop recently asked if SHs can exchange apts that are allocated the same # of shares and our attorney said no. You can't negotiate the difference in value of apts, and there are factors such as taxes, mortgages on the apts, etc. If this were allowed, SHs would be exchanging apts in their buildings and between buildings all the time, and what a mess that would be.

Your SH has to sell the shares for her apt and buy those for the other apt - and why does she want minimum paperwork due to her immigration status? Something there doesn't sound right to me.

Any “exchange” of property such as real estate especially has income tax implications and likewise needs to withstand IRS scrutiny. As there must be a dollar amount ascribed to the transfer there are the tax implications.


Thus while two shareholders may wish to exchange apartments, the transaction must meet legal and tax requirements.

Thus, the co-op corporation’s transfer agent (attorney) must be involved and as usual all necessary paperwork must be generated.

Unless all legal matters are in order, the co-op corporation could be subject to some nasty legal challenges and litigation in the future.