Flip tax

A flip tax is a transfer fee a cooperative imposes on unit sales — a percentage of price or gain, a per-share amount, or a flat sum, payable to the corporation, typically by the seller. Despite the name it is private, created by the co-op's own governing documents, and it funds reserves without raising maintenance.

For pricing and comparison work, flip taxes are friction that varies building by building: two identical apartments in neighboring co-ops can carry different effective sale economics because one corporation takes a cut. The governing documents and offering-plan amendments establish whether one exists and how it computes — a diligence detail with a direct line to net proceeds.