The New York Probate Lawyer Blog has published many articles concerning Probate and Intestate Administration. Estate assets come under the authority of the estate fiduciary which is either an Executor or an Administrator. Among the various assets the estate may have control over, are a decedent’s cooperative apartment or condominium apartment. Each of these properties present unique issues and problems which an estate fiduciary may need to resolve.
A cooperative apartment is not considered to be real estate. The interest is the ownership of shares in a cooperative corporation. There is also a proprietary lease which allows the shareholder to occupy the unit. The issues that arise with a co-op relate primarily to the fact that any sale of the apartment must be approved by the cooperative management. Not only must the co-op approve the purchaser, it must also certify that the estate administrator or executor provides proper authenticated documents showing the power to transfer the owner’s interests. These documents may include updated certificates from the Surrogate’s Court, various affidavits of ownership and no estate debts and an estate tax Release of Lien which must be obtained from the NYS Department of Taxation and Finance and sometimes the IRS. Also, the original stock and lease must be located and turned over to the management. This may present a problem if these documents cannot be found among a decedent’s personal papers. It may be necessary to obtain special title insurance to ensure against any misappropriation of these papers.
The sale of a decedent’s condominium is somewhat different. This asset is considered real estate and the ownership is reflected in an actual deed. Most condominiums do not require that a purchaser or transaction be approved by the condominium Board. However, there are some condominiums where management approval is required.
The condominium rules and regulations need to be scrutinized. The management may have a Right of First Refusal. This means that the management has a prior right to purchase the apartment at the sales price. In these cases, the estate fiduciary will need to obtain a waiver of this right from management.
I have been representing clients in estate asset purchases and sales for over 40 years. These transactions can be complicated and the assistance of an experienced estate and trust lawyer may facilitate the process. Do you have a question regarding an estate, trust or Guardianship matter? Call me now for a free confidential review of your issue. We provide reasonable and flexible fee arrangements and personal representation.
New York Trusts and Estates Attorney Jules Martin Haas has helped many clients over the past 40 years resolve issues relating to guardianship and probate and estate settlement throughout New York City including the Bronx, Queens, Brooklyn, Manhattan, Nassau and Suffolk County. If you or someone you know has any questions regarding these matters, please contact me at (212) 355-2575 for an initial free consultation.