Legal Question in Real Estate Law in New York

Condominium Sellers fee - Flip Tax

Our condo passed a sellers fee that requires owners to pay 2% sales price. Is this legal? Has there been a previous court case ruling on this?

It appears like a reallocation of common charges or assessments -- not based on interest but disproportunately to sellers. It reads as follows: ''Upon the transfer of any unit with the X condominium, the current owner for the said unit shall be charged a transfer fee by the Condominium. Said fees to be used for the purpose of repairs, renovations or improvements to the common areas facilities and structures of the complex.''

Thanks


Asked on 5/27/05, 1:19 am

1 Answer from Attorneys
Phroska L. McAlister PHROSKA LEAKE McALISTER

Re: Condominium Sellers fee - Flip Tax

Yes, it's probably legal.

Sometimes it's called the " Condo or Coop Flip Tax." It is often imposed upon the Seller, and is calculated upon the Sale Price.

Good luck,

Phroska L. McAlister, ESQ

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Answered on 5/27/05, 1:23 pm


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