Selling a cooperative apartment requires you to consider your personal needs first. Do you live in the unit? Are you moving out prior to the closing? Do you need the money from the sale to purchase another unit? Your acceptance of an offer is the most critical decision you will make. This is especially true if you need the money to purchase another place to live.
Basically, if you sign a separate contract to purchase a property, you could lose your down payment. If the person purchasing your unit is unable to secure their own loan, it will impact your purchase of a new property. There are strategies and tactics that may be employed to address this. You should consult with a lawyer before listing the property for sale.
One reason to consult a lawyer prior to listing the property is to have a complete understanding of the impact this sale will have upon your overall financial plan. You should clearly understand the tax implications of your sale before it is sold. Our concierge system also considers the estate planning and asset protection issues of your sale.
For example, you may be able to sell this cooperative apartment as an IRS Section 1031 Exchange. A Section 1031 Exchange could permit you to purchase a new property and defer any taxes due on the first property until after the sale of your new property. One of the benefits of this strategy is that investors may trade a coop apartment for a multifamily, or even a commercial property.
Other considerations in selling your cooperative apartment include whether or not you are a holder of unsold shares and whether any restrictions are placed upon the sale by the cooperative. Those that travel should also consider giving a Power of Attorney so the closing is not delayed. We offer our Platinum Property Transfer System so that our concierge clients do not have to worry about coming to the closing at all.
Our system lets busy professionals and entrepreneurs do what they do best. By giving us Power of Attorney, clients are able to buy or sell properties with minimal involvement. They can focus on their own careers. Our clients often earn many times more in income than they incur for our legal fees. After closing, we will wire your sale proceeds to you anywhere in the world that you direct. Our concierge process even makes receiving your money stress free!
John has written an e-book, Big Apple Guide to NY Real Estate Transactions. It is available to answer questions that you may still have. Please provide your first name and email in the box below to download it now. We are attorneys and not salespeople. Nobody will ever call. There is no obligation. John simply asks that you email him to tell him what you liked or did not like about the book.