If a bank finances the purchase of a co-op unit, there is no mortgage, but a security agreement whereby the bank holds the stock and lease as collateral. A financing statement is filed rather than a mortgage. Therefore, no mortgage tax is required to be paid by the buyer. However, New York State (and New York City ) still requires a seller to pay transfer tax, even though the transfer of a co-op is technically not a transfer of real property. Some apartment corporations require payment of a fee known as a flip tax upon the transfer of a co-op unit. Title insurance is not require on co-ops, but is available.

Almost all co-op transfers must be approved by the apartment corporation's Board of Directors. Buyers must submit an application package detailing their assets, liabilities, income, and debts. Once the application package is submitted, the buyer must meet with the Board of Directors and receive its final approval before the transfer can take place.

This article is intended to be a brief summary of some of the fundamental differences between condos and co-ops. It does not encompass all of the issues that one might encounter when either purchasing or selling a condo or co-op. Should you have any specific questions on this subject, please feel free to contact our office.

Health insurance

Important in a divorce settlement

As costs rise and companies shift more expenses to employees, maintaining good health- insurance coverage is important to everyone. It is particularly important that divorcing spouses who receive alimony and child support maintain adequate health-... insurance coverages and payments to assure financial security for themselves and their children. Medical insurance can be employer-provided,  purchased privately, or obtained from Medicare or Medicaid. Divorce is also considered a "qualifying event" for health-care benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, which entitles a divorced partner to continue receiving coverage in an employer's group health plan for a limited time. Because no one should proceed without medical coverage, attorneys  recommend that settlements include stipulations for continuing health-insurance protection for separating or divorcing spouses and children. In many cases, one or both spouses can provide it at affordable cost through employer group coverages. In some cases, divorced spouses may purchase additional health coverage to protect themselves and their children.