Owners on stock certificate must reside in the coop unit

[KScarlett999]

What is the name of your state? New York

I am in the process of buying a coop in New York. The Coop bylaws require that all owners listed on the stock certificate have the coop as their primary residence. The Coop bylaws do not allow any subletting.

My mother lives in Idaho. She just sold her farm and to defer capital gains taxes, she and I together want to buy the coop. But, the Coop bylaws will not allow it because my mother lives in Idaho.

Q: Is it legal that the Coop bylaws not allow my mother to be listed on the certificate just because she resides in Idaho? I as part owner will reside in the coop and it will be my primary residence.



Q: If it is legal, is there any way to structure the purchase in just my name, but still defer the capital gains for my mother? She will provide the money.

 

[You Are Guilty]

What is the name of your state? New York

I am in the process of buying a coop in New York. The Coop bylaws require that all owners listed on the stock certificate have the coop as their primary residence. The Coop bylaws do not allow any subletting.

My mother lives in Idaho. She just sold her farm and to defer capital gains taxes, she and I together want to buy the coop. But, the Coop bylaws will not allow it because my mother lives in Idaho.

Q: Is it legal that the Coop bylaws not allow my mother to be listed on the certificate just because she resides in Idaho? I as part owner will reside in the coop and it will be my primary residence.

You betcha. Why wouldn't it be?

Q: If it is legal, is there any way to structure the purchase in just my name, but still defer the capital gains for my mother? She will provide the money.

The obvious solution is to find another co-op that permits non-resident owners.

 

[HomeGuru]

What is the name of your state? New York

I am in the process of buying a coop in New York. The Coop bylaws require that all owners listed on the stock certificate have the coop as their primary residence. The Coop bylaws do not allow any subletting.

My mother lives in Idaho. She just sold her farm and to defer capital gains taxes, she and I together want to buy the coop. But, the Coop bylaws will not allow it because my mother lives in Idaho.

Q: Is it legal that the Coop bylaws not allow my mother to be listed on the certificate just because she resides in Idaho? I as part owner will reside in the coop and it will be my primary residence.



**A: have an attorney review the coop rules and regs and see if a trust would work as the shareholder owner of record.

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Q: If it is legal, is there any way to structure the purchase in just my name, but still defer the capital gains for my mother? She will provide the money.

**A: see above.