We had 2 co-op closings in January, bought a new coop and sold old one. We learned there was an abatement in the old coop that went to the new owner. Apparently if you live in the unit as a primary resident on January 5, you will get an abatement for the upcoming year. We lived in the coop in January 5, 2018, there was an abatement for that unit for 2018-2019 tax year, but it went to the new... [more]
We had 2 co-op closings in January, bought a new coop and sold old one.
We learned there was an abatement in the old coop that went to the new owner.
Apparently if you live in the unit as a primary resident on January 5, you will get an abatement for the upcoming year.
We lived in the coop in January 5, 2018, there was an abatement for that unit for 2018-2019 tax year, but it went to the new owner.
We also lived there in January 5, 2019. Does that mean there would be another abatement for 2019- 2020 and that would be paid to the new owner again?
The reason we care about this is because we received an assessment from the new co-op but since we didn't live here last year, we have no abatement to offset it.
So we will have to pay out of pocket.
Also our closing was a few days after January 5, 2019, we missed this coming year's abatement again, so next year we will get another assessment.
We feel especially the recent abatement that went to the new owner and took care of THEIR assessment should be ours. An assessment is posted to every share holder, but the new owner could offset it because our abatement was applied.
We would like to know if we are entitled to request the new owner to return the abatement.
No agreement was made at closing. Our lawyer didn't even realize some abatement was left behind.
Thank you for your advice!
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Response by front_porch
over 6 years ago
Posts: 5316
Member since: Mar 2008
I'm a little confused. (I deal with this abatement sometimes as a broker, and also as a co-op owner.)
In the "old" co-op, if the abatement was typically assessed against, your attorney should have found that assessment in the building's financials.
Since your attorney didn't find it, presumably it wasn't assessed against. But the managing agent of the "old" building should have been able to keep track of where you lived and when. Have you communicated with them? What do they say?
ali r.
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Response by 30yrs_RE_20_in_REO
over 6 years ago
Posts: 9877
Member since: Mar 2009
Unfortunately this is yet another area where Coop attorneys and managing agents tend to tell boards that they can do whatever they want to, and since you are no longer an owner they think they no longer have any duties to you.
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Response by stache
over 6 years ago
Posts: 1298
Member since: Jun 2017
Agree. You would probably have to sue to get this $ back.
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Response by monkeywrench
over 6 years ago
Posts: 1
Member since: Sep 2018
I posted the original question.
Thank you for your opinions.
I learned little more about this.
A good attorney would include in the contract that the seller has the right to collect a retroactive abatement from the buyer 1 or 2 years after closing. Obviously our attorney wasn't a good one.
Our contract didn't say anything about the abatements so as stache said, we will probably have to go to court.
@ali
Abatement and assessment appear in the same monthly statement.
Basically they are pretty much the same amount. So, we don't need to see the building's financials.
Assessment is posted to all share holders but abatement is for those who is eligible.
The buyer got it just because we lived there as eligible shareholders. If we weren't they would have gotten assessment only and they would have had to pay out of pocket.
We found out the amount of the abatement was $2200. (Coop condo abatement & STAR together)
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I'm a little confused. (I deal with this abatement sometimes as a broker, and also as a co-op owner.)
In the "old" co-op, if the abatement was typically assessed against, your attorney should have found that assessment in the building's financials.
Since your attorney didn't find it, presumably it wasn't assessed against. But the managing agent of the "old" building should have been able to keep track of where you lived and when. Have you communicated with them? What do they say?
ali r.
Unfortunately this is yet another area where Coop attorneys and managing agents tend to tell boards that they can do whatever they want to, and since you are no longer an owner they think they no longer have any duties to you.
Agree. You would probably have to sue to get this $ back.
I posted the original question.
Thank you for your opinions.
I learned little more about this.
A good attorney would include in the contract that the seller has the right to collect a retroactive abatement from the buyer 1 or 2 years after closing. Obviously our attorney wasn't a good one.
Our contract didn't say anything about the abatements so as stache said, we will probably have to go to court.
@ali
Abatement and assessment appear in the same monthly statement.
Basically they are pretty much the same amount. So, we don't need to see the building's financials.
Assessment is posted to all share holders but abatement is for those who is eligible.
The buyer got it just because we lived there as eligible shareholders. If we weren't they would have gotten assessment only and they would have had to pay out of pocket.
We found out the amount of the abatement was $2200. (Coop condo abatement & STAR together)