How to transfer a co-op from one person to another?

[Bill Rappaport]

What is the name of your state? New York City

Greetings!

For what seemed like a good reason at the time, my co-op is under my sister's name. I have, of course always paid the maintenance and also originally provided money to purchase the apartment.

Now, about twenty years later, the original reason for putting it under my sister's name is no longer valid and I would now like the title to be under my name as I am, in fact, the de facto owner.

I am thinking this will be a little more involved than just signing a document. Would someone be able to tell me what is involved in order to do this?

Will there be taxes involved in handing it over and approximately how much would they be?

Thank you so much in advance for your expert opinion and advice on this subject.

Bill R.

 

[Zigner]

Is your sister willing to just give you title to the property that she owns?
You may wish to speak to a local tax pro and also a local real-estate pro. This might even require the assistance of an attorney (not sure if it's required in NY).

 

[quincy]

What is the name of your state? New York City

Greetings!

For what seemed like a good reason at the time, my co-op is under my sister's name. I have, of course always paid the maintenance and also originally provided money to purchase the apartment.

Now, about twenty years later, the original reason for putting it under my sister's name is no longer valid and I would now like the title to be under my name as I am, in fact, the de facto owner.

I am thinking this will be a little more involved than just signing a document. Would someone be able to tell me what is involved in order to do this?

Will there be taxes involved in handing it over and approximately how much would they be?

Thank you so much in advance for your expert opinion and advice on this subject.

Bill R.

A quitclaim deed should be all that is necessary if your sister is willing.

 

[PayrollHRGuy]

A quitclaim deed should be all that is necessary if your sister is willing.

There may also be some requirements for approval from the Co-Op board.

 

[quincy]

There may also be some requirements for approval from the Co-Op board.

True. There could be other considerations.

 

[stealth2]

I hope you and your sister are on good terms...

 

[zddoodah]

As an initial matter, have you spoken with your sister about this, and is she willing to do what is needed to get the property into your name?

I am thinking this will be a little more involved than just signing a document. Would someone be able to tell me what is involved in order to do this?

Why do you think this? It shouldn't require anything more than your sister signing a deed before a notary and recording that deed with the county clerk/recorder. You may also have to jump through a couple of hoops with the Co-op board, but no one here will be able to speak to that.

Will there be taxes involved in handing it over and approximately how much would they be?

I wouldn't think so, but you should consult with an attorney about this transaction.

 

[quincy]

I hope you and your sister are on good terms...

That is probably the most vital factor.

 

[adjusterjack]

I am, in fact, the de facto owner.

No, you aren't. Your sister is. Make no mistake. She will be selling it to you or giving it to you.

Would someone be able to tell me what is involved in order to do this?

No, it's not just a matter of signing a document.

The sale/transfer will have to be approved by the co-op board before the transfer can go through and you may not qualify if you aren't going to live there.

My own sister in NY is looking into buying a co-op and I looked up the corporation and read the qualifying requirements. They were rather draconian.

Whatever the name of the co-op building or corporation is you can go to its website and look up the requirements.

There are also many resources online about buying a co-op in NYC.

buying a co-op in nyc at DuckDuckGo

 

[quincy]

It could be just a matter of signing a document. It really depends on the co-op’s lease terms, with a common provision in many allowing for transfers to family members without board approval or at least transfers to family members with the board not withholding any family transfer unreasonably.

Here is a link to a 2016 appellate decision that speaks to New York City co-op transfers:

https://law.justia.com/cases/new-york/appellate-division-first-department/2016/15817-154950-12.html

 

[Bill Rappaport]

Thank you so much for all of your replies. I waited a day before checking back since I thought it would take a bit of time to receive an answer. I need to read some of the links that you provided which I will do tonight and will post again after doing so.

In the meantime, yes, I don't think my sister would be unwilling since she really didn't pay for it nor did she pay the maintenance all of these years. As far as our relationship goes, it's pretty good. There might of been some sibling rivalry back when we were kids, but that was long ago and as far as I know, neither of us harbor any grudges.

I was hoping that it would be signing a document or something to that effect so I am interested in reading the links you provided. However, somehow I was thinking there might be a significant tax, like a "gift tax" or something like that although I don't really know much about these things.

Does anyone have any notion whether there is a gift tax of a percentage of the market value of the apartment?

But maybe, as you say, different co-op boards have different rules when signing over to a family member.

In the meantime, I shall study the links that Quincy and adjusterjack provided.

 

[quincy]

Thank you so much for all of your replies. I waited a day before checking back since I thought it would take a bit of time to receive an answer. I need to read some of the links that you provided which I will do tonight and will post again after doing so.

In the meantime, yes, I don't think my sister would be unwilling since she really didn't pay for it nor did she pay the maintenance all of these years. As far as our relationship goes, it's pretty good. There might of been some sibling rivalry back when we were kids, but that was long ago and as far as I know, neither of us harbor any grudges.

I was hoping that it would be signing a document or something to that effect so I am interested in reading the links you provided. However, somehow I was thinking there might be a significant tax, like a "gift tax" or something like that although I don't really know much about these things.

Does anyone have any notion whether there is a gift tax of a percentage of the market value of the apartment?

But maybe, as you say, different co-op boards have different rules when signing over to a family member.

In the meantime, I shall study the links that Quincy and adjusterjack provided.

Whether there is a New York State gift tax on the transfer depends on a few factors but, in general, if the transfer is a “bona fide” gift (i.e., nothing of value is exchanged) then the transfer should not be subject to the tax.

BUT, you will definitely want to verify not only that but also learn about other state, local and federal taxes that might be an issue. In addition, you will want to review the terms of your specific co-op as they relate to transfers between family members.

Here is a link to New York transfer taxes:

https://www.tax.ny.gov/bus/transfer/rptidx.htm

I recommend you speak to a City attorney who is well-versed in real estate transfers.

 

[adjusterjack]

Bill, is she going to continue living in it?

If not, will you sell it or live in it yourself?

 

[quincy]

The sale of the property or the exchange of the property for something of value will change the property from exempt to not exempt from transfer taxes.

To avoid transfer taxes, the conveyance should be without consideration (money, property, any other thing of value).

 

[Bill Rappaport]

Quincy: That last link you sent seems particularly useful. It seems to be saying that the tax would be two dollars for every $500 on properties valued under one million dollars (which mine is).

I suppose one would prefer not having to pay anything if one doesn't need to, at least that is now a number that I can start with and it is not something astronomical like 33 percent of the price of the whole apartment (though it is a chunk of change I would rather keep in my pocket).

I am however confused by your comment: "To avoid transfer taxes, the conveyance should be without consideration (money, property, any other thing of value)."

I suppose, then, it is possible to avoid the transfer tax since nothing is going to be conveyed for the property?

Maybe upon second reading that will become more clear, unless you know outright.

By the way, adjusterjack, I will live in it myself.

Thank you!