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.
Documents Provided By The Seller In A Coop Sale
Selling a cooperative apartment in New York is a complex process. Various moving parts are required to come together in order for the sale to proceed without issue towards the closing date. If an obstacle arises, it may cause delays or the cancellation of the sale. For this reason, it is imperative to hire an experienced real estate attorney who can guide you through the sale of your cooperative apartment. Selling a cooperative apartment requires skill, knowledge, and resources to ensure that the transaction does not fall apart during any of the key stages before closing. Thus, a real estate attorney who is seasoned in providing instrumental counsel to clients in New York, Westchester, and Queens should be approached.
When a coop is being sold, two documents that the seller must provide is the stock certificate and the proprietary lease. The stock certificate exhibits the seller’s ownership of the shares of the apartment. The proprietary lease indicates that the seller has the right to occupy the apartment for sale. Most of the time, if the seller obtained financing for the coop apartment, the financial lender will have the stock certificate and proprietary lease. In the event that the seller did not obtain financing for the acquisition of the coop, they should be in possession of both the stock certificate and the proprietary lease. These documents must be delivered at closing by either the seller or lending institution.
If the seller has lost the stock certificate and the proprietary lease, they must inform their real estate attorney as soon as possible. A knowledgeable real estate agent can assist the sellers with the steps to procure the necessary documents for closing. At John M. Crane, P.C., we have helped numerous clients sell their cooperative apartments. If essential documents have been lost, we are equipped to assist the seller in this circumstance. We can help sellers execute an affidavit for the lost proprietary lease and/or stock certificate. There has not been an issue that we have not been able to resolve effectively. Therefore, if you cannot locate important documents, or if there is another issue at hand, we have solutions.
Cooperative Apartment Transaction Approval
When a contract to purchase is presented to the seller of a cooperative apartment, it is imperative that a real estate attorney review the agreement. The sale and purchase of a coop are handled differently compared to other types of real estate transactions. For one, the sale of a cooperative apartment and the purchaser’s application are both subject to the approval of the board of directors of the coop. If the board does not approve, the transaction will not continue. However, with the assistance of a skilled real estate attorney, the chances of approval significantly increase. A real estate attorney who is familiar with the law, area, buildings, and directors involved can identify how to best move forward in a cooperative apartment transaction to secure approval.
For a smooth transaction of your cooperative apartment, contact our skilled real estate attorneys. We have offices in New York, Westchester, and Queens.
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