What is the primary fee associated with the transfer of cooperative units?

The primary fee associated with the transfer of cooperative units is known as a flip tax. A flip tax is a fee charged by a cooperative corporation to its shareholders when they sell their shares associated with a cooperative apartment. This fee is often used by the cooperative to cover the costs of maintaining the building or to bolster its reserves. The amount of the flip tax varies depending on the cooperative's policies and can be structured as a flat fee or a percentage of the sale price.

The concept of a flip tax is integral to cooperative living as it helps in managing the financial health of the cooperative. It ensures that the incoming owner contributes to the community's financial stability, which in turn can be beneficial for all residents.

Transfer fees, brokerage fees, and inspection fees are typical in various real estate transactions, but they do not specifically pertain to the unique structure of cooperative ownership and the associated costs that arise when units are transferred. Therefore, understanding the flip tax is crucial for anyone involved in the buying or selling of cooperative units.