A co-op transfer is the process of transferring ownership of a share in a cooperative apartment from one party to another party, other than an arm’s length transaction of purchasing or selling a co-op unit.
Here are some important things to consider when performing a co-op transfer:
Co-op Board Approval
Before a transfer can take place, the co-op board must approve the transferee. The board will review the transferee’s financial and personal qualifications to ensure that they meet the requirements of the co-op. The co-op board will also review the lien search to ensure the shares are free of liens and/or judgments.
Financing
If there is an open loan on the co-op shares, the lender must be notified and approve such transfer. At closing, the lender will require a new recognition agreement signed by the transferee, the co-op and the lender.
Transfer Fees and Taxes
There may be transfer fees and taxes associated with the transfer, which can vary depending on the co-op.
If you are considering a co-op transfer, have any questions regarding the process, and would like to do a consultation with one of our real estate attorneys, please call us at (212) 922-1330 or fill out our Contact Us form.
