Q: I am taking a listing from an estate that is selling a co-op apartment in New York City. Is there anything specific that I have to be aware of for this type of transaction?
A: When representing a seller in an estate sale, it is advisable to contactthe managing agent for the co-op at the outset of the transaction so as to determine what documents will be required by the co-op in order to effectuate the transfer of the stock and lease at the closing.
Generally, managing agents will require the following documents from the estate at the time of the closing: (i) Certificate of Letters Testamentary dated within 6 months of the closing; (ii) an Affidavit of Debts and Domicile executed by an executor or administrator of the estate; (iii) a Federal Release of Lien issued by the IRS (or an affidavit confirming that no such release is required); (iv) a New York State Release of Lien of Estate Tax issued by the NYS Department of Taxation and Finance; (v) the decedent’s death certificate; and (vi) the last will and testament of the decedent (certified as true and correct).
Important Tip: When representing an estate in a real estate transaction, real estate brokers should be aware of the need for the previously mentioned documents. Towards that end, real estate brokers should recommend that the parties speak with their respective attorneys in order to ensure that the parties obtain the necessary documents prior to the closing.
Neil B. Garfinkel
REBNY Broker Counsel
Partner-in-charge of real estate and banking practices at Abrams Garfinkel Margolis Bergson, LLP