Buyer asked to pay coop flip tax NYC

[ericd]

I got a copy of the sales application or board package from the listing agent after submitting my offer. Not sure if I won yet. But noticed something strange. In the Application Fees section, there are bold letters that say all fees are non-refundable. Furthermore, "Flip Tax - 1% of the sales price" is listed as a fee for both the seller AND the buyer.

Is this normal? That flip tax is odd, don’t you think. Hasn’t the current resident been in the unit for like 20 years or something? I thought that normally sellers pay the flip tax into the building's reserve fund?

Should I get started with the purchase application in advance of even having an accepted offer by the way?

[aslan]

Hi Eric, that flip tax is actually about average (https://www.hauseit.com/flip-tax-nyc/) though it’s interesting that this one is split 50/50. It’s more common to see the seller paying it, though some buildings don’t care and it’s a negotiating point.

No worries about the purchase app for now, it’s just a FYI. You should get started on that in earnest once there’s a real deal on hand (i.e. signed contract).

[lower_nyc]

I got a copy of the sales application or board package from the listing agent after submitting my offer. Not sure if I won yet. But noticed something strange. In the Application Fees section, there are bold letters that say all fees are non-refundable. Furthermore, "Flip Tax - 1% of the sales price" is listed as a fee for both the seller AND the buyer.

Is this normal? That flip tax is odd, don’t you think. Hasn’t the current resident been in the unit for like 20 years or something? I thought that normally sellers pay the flip tax into the building's reserve fund?

Should I get started with the purchase application in advance of even having an accepted offer by the way?

Hi Eric - this language seems vague to me. Does the language suggest that there is a 1% flip tax for both buyer and seller, totaling 2%? Or does it mean there is a 1% flip tax and the building does not care whether the buyer or seller pays it? If it's the latter, this is something you should negotiate upfront and have your attorney include in the contract!