Inherited coops are different than real property—a coop owns shares in a corporation.
Suppose you inherited a co-op apartment and would like to sell it. Do you have the proper authority to do so?
If the shares and proprietary lease for the co-op are in the deceased’s name, you cannot individually convey the apartment.
Inherited coops shares and leases can only be sold by the estate’s fiduciaries (i.e., executors or administrators). Additionally, the co-op’s transfer agent will, at a minimum, require that the seller’s attorney provide the following documents:
- A Death Certificate, 2. Last Will and Testament, 3. Certificate discharging property from a federal estate tax lien (or evidence that none is required), 4. New York State Release of Estate Tax Lien, 5. Affidavit of Debts and Domicile, and 6. Certificate of Letters Testamentary (or Letters of Administration) dated within 60 days of closing.
Additional documentation will be required with inherited coops if the original stock and proprietary lease cannot be located.
Board of Directors of Coops
The estate may bequest you shares; however, the cooperative’s Board of Directors must approve you to live there. Therefore, you may retain them or sell them depending on your circumstances. Cooperatives have specific financial and other residency requirements that may preclude you from being approved by the Board. If the beneficiary of stock in a co-op does not want to live in the apartment or is not approved by the Board, they will generally need to sell the shares to someone who can be approved.
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