Posted on March 2015
Posted on April 10, 2014
ROLE OF ATTORNEYS FOR COOPERATIVES AND CONDOMINIUMS
The Cooperator published an article in January 2014 describing the role of attorneys for cooperative or condominium corporations.
A cooperative and condominiums attorney’s role should be keeping litigation at bay and making sure all organizational and contractual documents are negotiated and executed properly. The goal is to find an attorney who will manage legal matters most important to the cooperative or condominium corporation. In each case or situation, the cooperative or condominium attorney must be prepared to represent their client in a wide variety of scenarios.
When examining a counsel’s role focus should be on the actual structure for the cooperative and condominium. The cooperative and condominium attorney makes sure that the proper documents, rules and regulations, amongst other things, are properly formatted, disclosed and understood. It is important that cooperative and condominium board consults with their counsel to ensure that vendor contracts with the cooperative or condominium corporation contain the proper protections. The proper protections ensure that boards will not be held personally liable, amongst other things. For example, it is important that vendor contracts require proof of the existence of the appropriate insurance, naming the cooperative or condominium corporation and its managing agent as Additionally Insureds.
As an attorney plays a major role in working with their clients, major factors of trust, reliability and compatibility are key to building a relationship. In order for cooperative or condominium business things to run smoothly, all communications and agreements must be honestly disclosed, properly written and of course understandable.
Source The Cooperator -The Coop & Condo Monthly. “The Role of the Counsel” by Lisa Iannucci. Jan. 2014
Posted on February 15, 2014 by admin
TYPICAL NEW YORK CITY COOPERATIVE AND CONDOMINIUM CLOSING COSTS FOR PURCHASER
| Typical Co-Op Closing Costs | Typical Condo Closing Costs |
| FOR THE PURCHASER | FOR THE PURCHASER |
| Own Attorney: Consult your attorney | Own Attorney: Consult your attorney |
| Bank Fees: Points: 0% to 3% of loan value | Bank Fees: Points: 0% to 3% of loan value |
| Application Fee: $500+ (Credit Report, etc) | Application Fee: $500+ (Credit Report, Appraisal) |
| Bank Attorney: $750+ | Bank Attorney: $750+ |
| Miscellaneous Bank Fees: $500+ | Tax Escrows: Two to six months |
| Lien Search: $350 | Appraisal Fee: $300+ |
| UCC-1 Filing: $75+ | Recording Fees: $400+ |
| Maintenance Adjustment: Monthly carrying costs, maintenance, and assessments, if any, are pro-rated depending on when the closing is held. | Mortgage Tax: 1.80% of amount of mortgage on loans up to $499,999; or, 1.925% of amount of mortgage on loans of $500,000 and over |
| Application Fee: $500+ (Credit Report/Appraisal) | Short Term Interest: Equal to interest for balance of month in which you close |
| Short Term Interest: Equal to interest for balance of month in which you close | Fee Title Insurance: Approx. $450 per $100,000 of purchase price |
| Move-in Deposit: One time fee of $500+ (if applicable) | Mortgage Title Insurance: Approx. $200 per $100,000 of mortgage amount |
| Recognition Agreement Fee: $250+ | Municipal Search: $400+ |
| Appraisal Fee: $300+ | Managing Agent Fee: $250+ |
| Mansion Tax: 1% of entire purchase price where price is $1,000,000 or more. | Common Charge Adjustment: Monthly carrying costs, common charges, real estate taxes, and assessments, if any, are pro-rated depending on when the closing is held |
| Real Estate Tax Adjustment: One to six months | |
| Mansion Tax: 1% of entire purchase price where price is $1,000,000 or more. | |
| Move-in Deposit: One time fee of $500+ | |
| Title Closer: $250 |
Posted on February 6, 2014 by admin
TYPICAL NEW YORK CITY COOPERATIVE AND CONDOMINIUM CLOSING COSTS FOR SELLER
| Typical Co-Op Closing Costs | Typical Condo Closing Costs |
| FOR THE SELLER | FOR THE SELLER |
| Broker: Typically 6% depending upon size and marketing | Broker: Typically 6% depending upon size and marketing |
| Own Attorney: Consult your attorney | Own Attorney: Consult your attorney |
| Co-op Attorney: $500+ | Processing Fee: $450+ |
| Flip Tax: 1% to 3% of Price (if applicable) | Move-out Deposit: One time fee of $500+ (if applicable) |
| Stock Transfer Tax: $0.05 per share (if applicable) | NYC Transfer Tax: 1% of price up to $499,999; or, 1.425% of price if $500,000 and over; RPT filing fee $125. |
| Move-out Deposit: One-time fee of $500+ (if applicable) | NY State Transfer Tax: $2 per $500 of price, or 0.4% of purchase price. |
| NYC Transfer Tax: 1% of price up to $499,999; or, 1.425% of price if $500,000 and over; plus $100 filing fee. | Miscellaneous Title Fees: $200 |
| NY State Transfer Tax: $2 per $500 of price or 0.4% of purchase price. | Payoff Fee to Title Closer: $300+ |
| Payoff Fee to Attorney: $400+ | |
| UCC-3 Filing Fee: $75+ | Note: For condominiums in new developments, the Purchaser will pay costs normally paid by the Seller. These include Seller attorney fees as well as NY and NYC Transfer Taxes. |
Posted on May 21, 2013 by admin
SOME NEW YORK CITY COOPERATIVES ARE ALLOWING LLCs TO PURCHASE
As New York real estate values soar, some New York City co-op boards have begun to allow residents to purchase their units with limited liability corporations (LLCs). In additions, some boards are allowing residents to change their ownership from individual to family trust. Boards are changing their old rules, becoming user-friendlier to accommodate new buyers.
If Coop boards allow the purchase of their unit(s) through LLCs, they are taking steps to ensure that a real person will be held responsible for their cooperative ownership responsibilities. Boards are requiring the buyer using an LLC to execute a “personal guaranty”, an agreement ensuring that only the individuals named in the LLC will occupy the apartment and an agreement restricting transfer of the ownership of the LLC without the board’s approval.
Coop boards are also warming to the idea of their unit share being held by family trusts. Coop unit purchasers are drawn to this method of holding coop unit interests because they realize a significant saving on estate taxes. Coop boards may also benefit by being able to evaluate their beneficiary of the family trust long before the trustees demise. A benefit which may allow boards to resolve future problems with the beneficiaries before they grow.
The idea of allowing LLCs buy cooperatives is still a fairly new practice that is being evaluated by co-op boards around the city.
Source: “Co-ops of the Rich / Famous: Should You Let Limited Liability Corporations Buy?” by Kaysen, Ronda HABITAT 10 Apr. 2012