Coop Estate Requirements
By Rosemary Liuzzo Mohamed
Our firm represents several Coop buildings in New York City in connection with closing the sales of their units. When the seller of a unit is the shareholder’s estate, we are often asked for coop estate requirements to sell. Here is a brief but thorough summary of what most coops will require.
To begin, an original death certificate for the decedent is required for review.
Next, we will request to see a copy of the stock certificate and proprietary lease allocated to the subject unit and confirmation both originals will be delivered to closing for cancellation. We will review both documents to determine if the deceased had a tenant by the entirety or a tenant with rights of survivorship who is alive and a party to the sale. If so, the next additional requirements are not needed. If not, we will proceed to request the following items.
A certified copy of the decedent’s will (if there is one) must be reviewed by coop counsel to confirm if the deceased’s will aligns with the method of the proposed sale.
A Federal Release of Estate Tax Lien Waiver is also required for review. In instances where an Estate is below the threshold, a List of Assets Inventory may be acceptable in its place.
A New York State Release of Estate Tax Lien (Form ET 117) is required. This may be obtained from the NYS Dept. of Taxation and Finance.
In order to proceed to Closing, currently dated (within the last six (6) months) and sealed Letters Testamentary (if the decedent died with a will) or Letters of Administration (if the decedent died without a will) must be presented authorizing the Executor or Administrator to sign closing documents. Executors and/or Administrators must be present at closing and may not assign their signing duties/power to another individual by Power of Attorney.
Our office will request an Affidavit of Debts and Domicile for the deceased to be signed by the Executor/Administrator of the Estate.
Lastly, several coops will require an Eagle 9 title policy with a coop endorsement in connection with Estate Sales.
Once all items are received, our office will conduct an extensive review to make sure all parties to the transaction are thoroughly protected and the transaction occurs in compliance with all transactional, coop, and estate laws.