DC Decides to Add Transfer and Recordation Tax to Coop Transactions

Coops have always been exempt from transfer and recordation taxes because buying or selling involves transfering shares of stock in a building, not real property. Due to the budget shortfalls, the DC government has elected to extend the transfer and recordation tax that applies to buyers and sellers of Single Family and Condo properties onto Coops as well. Effective October 1, 2009, buyers and sellers of Coops will be taxed 1.1% on purchases under $400,000 and 1.45% on purchases over $400,000. If you are looking at any Coop buildings I suggest buying NOW to save yourself and the seller this significant expense! If you own a Coop I suggest getting it on the market asap!