flip tax

It depends on the co-op and the bylaws of that co-op. Sometimes it's paid by the buyer and other times it's paid by the seller. It can also be negotiated as to who pays.

Everything is negotiable. Nothing prevents you from demanding the purchase price be reduced by an amount equal to the flip tax. It is most commonly paid by sellers, but coop by-laws can dictate whatever they want.

There is a very good legal theory out there - as yet untested - that a co-op board has no right to force a buyer to pay a flip tax. Co-op boards have rights over shareholders; a buyer is not yet a shareholder. That would me my approach to the seller - let him pay. It's a buyer's market, in any case.

during negotiations, this should have came to light. if the seller and seller's broker did not notify you of this, then the contract price should be lowered by the amount of the flip tax that you will have to pay. considering that a flip tax, no matter who pays, is not mortgageable, in terms of financing, it's irrelevant.

In good times, buyer pays. In bad times, seller pays. Similar to rental broker fees.
Did you sign the contract yet?

Hi cbishara, I would also ask if there are tranfer fees, move in/out fee, etc. Every building has its own rules but I agree with newmove 1. Good luck

I'm pretty sure it's enunciated in the Blumberg form contract who is to pay the transfer fees, if any, so I don't think it's an issue of "during negotiations, this should have came to light. if the seller and seller's broker did not notify you of this, then the contract price should be lowered by the amount of the flip tax that you will have to pay."

I was in a flip tax fight just last week.

The flip tax is in a coop agreement. It applys to members of the coop. As a buyer you are NOT yet a member. The coop does not care where the money comes from as long as they get their cut. In this market the seller pays the flip tax not the seller or YOU WALK!!! Be a pussy, be ready to pay.

not the buyer...whoops

falcogold, do you need help determining which way is up?

Thanks folks. Looks like i'll be putting my negotiation skills to good use.

it's the direction the bubbles are going