How are co-op and condo owners charged for the costs of running the building?

In both co-op and condos, owners make monthly payments for shared expenses like heating, water and electricity, staff, and elevators. How much the shared costs are is highly dependent on your building’s size and number of floors. It also depends on what types of services or amenities your building has.

In a co-op, the monthly payment is known as maintenance, or maintenance fees; in a condo, the owner pays what is called common charges (often abbreviated CC).

Transfer fees, also known as “flip taxes,” are fees commonly imposed on buyers or sellers in New York City co-ops and condos upon sale of an apartment. (Although transfer fees are often referred to colloquially as “flip taxes,” they are not taxes, since they are imposed by the co-op or condo, not by the government. But the catchy name has stuck.)

These fees are an alternative means to raise capi­tal for capital projects and maintenance repairs, thus alleviating the need for assess­ments. The amounts of transfer fees, their structure, and how they can be changed are generally determined by the bylaws.

Here are some ways that the transfer fees can be structured:

• A flat fee
• Dollar amount per share or percent ownership
• Percent of the sales price
• Percent of the net profit
• A high percent in the first year(s) followed by a sliding scale in order to discourage flippers and encourage long-term residency