The article explores a unique scenario in Manhattan co-op sales during times of economic uncertainty. The focus is on sellers accepting bids lower than a board would allow and a workaround involving a contract of sale with a misrepresented selling price. Shmulewitz provides legal insights into the practice, emphasizing the importance of transparency and full disclosure in such transactions to avoid potential risks and legal implications. The article also touches upon the implications for transfer taxes, flip tax, and brokerage commissions, suggesting a consistent approach based on the higher price figure for these aspects.
Mr. Shmulewitz leads the co-op/condo practice group at the firm, overseeing the representation of over 250 cooperative and condominium Boards in New York, encompassing some of the city’s most esteemed apartment buildings.