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hi everyone,
the coop i am in is currently selling an apt. a shareholder has contacted the board looking to exchange their apt for the one for sale. I am not sure of the difference in value but the shareholder seeking the other apt said she wants to do this with minimum paperwork due to her immigration status and if there is any difference in value (which there probably is) that we could negotiate how she would make up any difference. the apt is also being shown by a realtor. my question is...does anyone know if you can exchange apts by simply exchanging the shares on the apts? my gut says the shareholder would have to sell her apt and then purchase the other apt just like any other person interested in the apt...any thoughts? also this person is a former board member.
thanks in advance for your responses.
r
Someone in my coop recently asked if SHs can exchange apts that are allocated the same # of shares and our attorney said no. You can't negotiate the difference in value of apts, and there are factors such as taxes, mortgages on the apts, etc. If this were allowed, SHs would be exchanging apts in their buildings and between buildings all the time, and what a mess that would be.
Your SH has to sell the shares for her apt and buy those for the other apt - and why does she want minimum paperwork due to her immigration status? Something there doesn't sound right to me.
Any “exchange” of property such as real estate especially has income tax implications and likewise needs to withstand IRS scrutiny. As there must be a dollar amount ascribed to the transfer there are the tax implications.
Thus while two shareholders may wish to exchange apartments, the transaction must meet legal and tax requirements.
Thus, the co-op corporation’s transfer agent (attorney) must be involved and as usual all necessary paperwork must be generated.
Unless all legal matters are in order, the co-op corporation could be subject to some nasty legal challenges and litigation in the future.
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if you allow this
Just my opinion
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