Understanding the "Flip Tax" in NYC Co-ops
I've heard some co-op buildings charge a "flip tax" when you sell. What exactly is this, and who typically pays it?
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I've heard some co-op buildings charge a "flip tax" when you sell. What exactly is this, and who typically pays it?
A flip tax is a fee paid to the co-op corporation upon the sale of an apartment. It's not a government tax but a transfer fee used to fund building improvements. The cost can be a percentage of the sale price or a fixed amount per share. The responsibility to pay is negotiable, but is often stipulated in the co-op's bylaws, sometimes falling on the seller, buyer, or both.
For a deeper look into co-op purchase nuances, New-York.Realestate has extensive guides.