Flip tax reprieve!
It looks like co-ops and condos can keep charging flip taxes on the sale of apartments, an important source of revenue for many buildings. According to an email sent out last night by Real Estate Board of New York President Steven Spinola and forwarded to BrickUnderground, co-ops and condos will be excluded from a new Fannie Mae/Freddie Mac regulation prohibiting the use of deed-based or covenant-based transfer fees. If co-ops and condos had not been carved out, most banks would have stopped issuing mortgages in buildings with flip taxes, rendering a vast number of apartments unsalable.
Related posts:
Warning: Your apartment is about to become unmortgageable
Killing deals to protect property values is risky business
4 neat ways to use an investigative lawyer in a co-op or condo
1 in 10 co-op sales inflated to pass the board
Approval, schmoovel! Renovation perks for board members
