Honolulu Coop Flip Tax?
May 28th, 2009 categories: For Buyers, For Sellers
I had a conversation with a person in New York City and I surprise to learn that cooperatives charge a “Flip Tax” when a unit in the building is sold. Apparently, if you own a cooperative in the City, the coop will paid a percentage of the sales price as a so-called “Flip Tax”. The logic behind the fee is that all of the residents of the building have maintained the condition of the project and therefore they should participate in the profit of your sale. I Googled “Flip Tax” and by golly it checked out.
“A flip tax is a fee paid by a seller or buyer on a housing co-op transaction typically in New York City. It is a transfer fee payable upon the sale of an apartment to the co-op. They are thus not taxes, in the sense that they are not paid to governments.”
CLICK HERE TO READ THE WIKI
CLICK HERE TO READ A LEGAL EXPLANATION OF FLIP TAX HISTORY
If you are moving to Honolulu and are wondering whether or not we have a “Flip Tax”, I am happy to report that we do not have one and may we never see one too!
CLICK HERE TO SEARCH FOR YOUR NEW HOME
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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Hey great article. I wish I had read this a long time ago.
CoolBlog. I will bookmark for later. There are many articles about flipping houses. I think you have it right.