Cooperatives & Condominiums
A transfer fee charged by a NY co-op corporation when shares are sold, paid to the building (not the government).
A flip tax is a private transfer fee imposed by a cooperative corporation when shares are sold or transferred. It is NOT a government tax. Typical rates are 1–3% of the sale price, sometimes structured as a per-share amount or a flat fee. The proprietary lease and bylaws specify whether the buyer or seller pays — most commonly the seller, but practices vary. Flip tax revenue typically funds building reserves and capital improvements. Some condominiums charge similar transfer fees, but they are most common in co-ops.
Exam Tip
PRIVATE fee paid to the cooperative — not a government tax. The proprietary lease specifies who pays (usually seller). Funds building reserves.
Full definition locked
Unlock all 100+ glossary definitions, study modules, practice exams, and Carl — your AI tutor.
Start free →One-time $49 · No subscription
Study Guide
Co-ops & Condos
Key concepts and exam tips →
Practice
NY Real Estate Co-ops and Condos
Free sample questions →
Preparing for the NY Real Estate Exam?
Unlocked covers Flip Tax and every other concept on the NY Real Estate Salesperson Exam — with study modules, practice questions, spaced-repetition flashcards, and Carl, your AI tutor.
click for a haiku!