Governor Paterson wants to impose the NY state mortgage recording tax on Coops. Coops have been exempt from the state mortgage tax because coops are not considered "Real Property" they have been considered personal property. Prior to 1989 coops were exempt from transfer taxes. Until a few years ago coop sales were private and not in the public records. Financing a coop is technically not a mortgage but a coop loan. Coop owners purchase shares in a corporation that owns the building. Coop shareholders have a proprietary lease. Current mortgage tax on condos and houses are between 2% and 2.175% depending on the mortgage amount. Below $500,000 or above $500,000. All purchases above $1 million are also subject to a 1% mansion tax. If this new tax is approved most of the revenue will go to NYC. It may have an adverse effect on the value and sale prices of coops.
If you've been thinking about buying a coop and need financing, Now Is the Time before this new mortgage recording tax for coops is implemented. Contact Alfred Real Estate Today.
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