New York Insider Tips – February 2018
With a multiple bid situation on a property, the “best and highest” approach secures the best outcome for the seller. All bidders have the opportunity to present their single best offer, with winner and back-up selected to begin contract phase. This ensures a stronger outcome & fairer deal than shopping bids or holding multiple submissions.
Builders, developers, architects, engineers, and property owners may request permission from the city to divide one lot of land into two or more lots. This is called an apportionment. Two or more lots may also be combined into one larger lot. This is called a merger. Approval depends on tax and zoning rules.
Owners generally need the consent of their co-op board to get approval of any work requiring a third party to enter their apartment. This likely will include simple touch-ups like a re-poly of a hardwood floor or a repaint. The board may just require an insurance certificate, or may require a full alteration agreement. Check with your managing agent.
Co-op board rejections increased in the last “down market” – between 2008 and 2012. The main driver for this was lower sales prices. Many boards used their veto power to stop sales that would have lowered overall building comps.
Foreigners may be subject to additional taxes when selling property. Capital gains rates can be double those for citizens. The State withholds additional proceeds, and 10% of gains are withheld by the IRS at closing. Not setting up a savvy ownership structure can result in substantial estate taxes as well. Consult your CPA and attorney.