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Converting 1031 Replacement Property To A Principal Residence

Converting 1031 Replacement Property To A Principal Residence

One of the hidden benefits of doing a Section 1031 exchange is that the code permits the taxpayer to change the use of the replacement property without triggering a realization of the deferred gain that was accumulated into it! But, like so many other rules in this area, strict compliance with the guidelines is required. …

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Filing Your Tax Return After Selling Property in a 1031 Like Kind Exchange: A Hidden Landmine in a Safe Harbor

1031 Exchange Tax Return Selling Property Residential Real Estate Law

Section 1031 which permits deferral of gains for the sale and subsequent acquisition of a “like kind” property is a powerful tax device for savvy investors. But the rules governing exchanges are a “safe harbor,” meaning that the failure to comply exactly with these technical rules will violate the exchange and force the taxpayer to …

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The Fine Art of Buying Apartments in Smaller Buildings: a Lawyer’s Guide

Buying Apartments Smaller Buildings Residential Real Estate Lawyer

I was recently representing a buyer in a 6 unit coop in Park Slope. The building was self-managed, so I contacted a resident in the building who had been provided to us as a ‘due diligence’ contact. “Are there board minutes for us to review,” my paralegal naively asked. “Board minutes?” replied our contact curiously. …

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Posted in Buyer Tips, Co-op, General | 1 Comment

More Pretending to Be a Coop: Confessions of a Condominium

Condominium Residential Real Estate Lawyer

As we turn the corner toward Halloween, a time of year when people dress up and pretend to be someone else, let’s revisit the subject of condominium boards that like to pretend they are coop boards. Let’s take a minute to review. A coop typically has a right of approval of a purchase transaction. That …

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Posted in Broker Tips, Co-op, Condominium, General | 3 Comments

The Coop / Condo Abatement: New Rules That Any Real Estate Expert Needs to Know

Manhattan Skyline

NYC real estate taxes are an important component of value, and recent developments in this area require close attention. This abatement gives eligible coop and condominium owners a reduction in their real estate taxes. Here are the changes that were recently enacted. Primary residence: The apartment must be the owner’s primary residence to be eligible …

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Posted in Broker Tips, Co-op, Condominium, General, Taxes | Leave a comment

Managing Clients’ Expectations In A Seller’s Market – Part 2/2

Residential Real Estate Attorney Guide Seller Expectation

In my last issue I wrote about managing a client’s expectations in order to avoid turning a happy client into an unhappy (non-referral source) one. Here are a few rules I have come up with to put that plan into effect. Be careful about telling a buyer we have a deal: We know that a …

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Managing Clients’ Expectations in a Seller’s Market: Part 1/2

Selling Real Estate Residential Real Estate Lawyer

Most real estate clients start out happy. And if we’re good, most of those clients who start out happy will end the transaction happy also, which of course is the foundation of a successful career in any service business that requires referrals to grow. But what about those real estate clients who end up dissatisfied, …

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Navigating the Financing Contingency in a Competitive Market

Residential Real Estate Attorney Guide Financing Contingency

Although financing contingencies are becoming less common in this competitive market, they are still an important term that often is part of the final contract. But it’s important to avoid some common mistakes when negotiating these provisions or your client could end up inadvertently putting themselves in a compromised position. Loan To Value It Too …

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Three NYC Real Estate Myths

Residential Real Estate Guide NYC Myth

Ask two economists the same question, and you’ll get three different answers. Real estate can be the same way. It’s easy for clients to get sidetracked in a fast moving market like ours. Buyers and sellers are inundated with experts offering their advice loudly from any forum that will take them. It’s important that real …

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Posted in Broker Tips, Buyer Tips, Co-op, General, Seller Tips | Leave a comment

Comparing Offers in a Seller’s Market

Comparing Offers in a Seller’s Market

One of my sellers called me the other day and happily announced that she had a buyer and asked me to prepare the contract. “Great I said, and by the way, how many offers did you get?” “We had 3 she replied, so we picked the highest one,” she proudly responded. “Are they financing?” I …

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Posted in Broker Tips, General, Seller Tips | 1 Comment