Archive for September, 2012

Sep
29

Purchasing a Coop in the Name of a Trust

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 Q:  I represent a purchaser who would like to purchase a cooperative apartment in the name of a trust.  The cooperative board will not allow this.  Why is a cooperative board reluctant to allow a shareholder to own a cooperative apartment in the name of a trust?

A:  Some cooperative boards do not allow their shareholders to own a cooperative apartment in the name of a trust.  This is due to the difficulties that may arise in dealing with a trust as opposed to dealing with an individual.  For instance, a cooperative’s proprietary lease generally places limitations on who can live in an apartment.  When the owner is a trust, a cooperative board will have a difficult time regulating who can live in the apartment since the entity itself cannot physically occupy the apartment.  Furthermore, if maintenance payments are not being made or the cooperative board’s rules are not being followed, it is easier to sue an individual owner rather than a trust.

Notwithstanding the foregoing, many cooperative boards recognize that trusts are an important estate planning vehicle.  As such, some cooperative boards may allow a cooperative apartment to be owned by a trust if the trustee or the occupant: (i) executes an Occupancy Agreement defining who has permission to live in the cooperative apartment; (ii) signs a personal guarantee assuring compliance with the cooperative board’s rules and the payment of maintenance; and (iii) designates an individual for service of process of legal papers on behalf of the trust.

You should always consult with the managing agent or the cooperative board to determine if a cooperative apartment is permitted to be owned by a trust.

Information provided by Neil B. Garfinkel, REBNY Residential Counsel Partner-in-charge of real estate and banking practices at Abrams Garfinkel Margolis Bergson, LLP

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Sep
28

How’s the Market – August 2012

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While Quarterly Sales Reports show closed activity for the previous quarter, monthly Contract Signed reports are the ‘crystal ball’ of closed sales to come.  Granted all contracts signed for any given month may not close in the next month, and some may not close at all but most (over 95%) will become closed sales which will become part of the next Quarterly Sales Report.

In the following charts and graphs you can see how the market stacks up against last month and this month last year.

 

 

 

Sep
16

In the News – September 16, 2012

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8/26/12 Trendy new Eateries hit the Upper East Side:  A crop of trendy restaurants and bakeries have opened on the upper East Side in recent months, bringing with them gourmet doughnuts, handcrafted cocktails and Indian staples.  See the reviews at  article at NY Daily News. 

9/10/12  CUNY and Sloan-Kettering Build Cancer Center and Nursing School on UES:  The City University of New York and Memorial Sloan-Kettering Cancer Center are teaming up to build a new, state-of-the-art cancer center and nursing school on the Upper East Side, officials announced Monday.  See the full article at DNAinfo.com New York 

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