New York Real Estate Salesperson ExaminationNew York State Specific Laws and RegulationsMedium
A New York real estate salesperson is assisting a buyer who is interested in a condominium unit. The buyer is concerned about potential future expenses beyond the monthly common charges. What is the most significant additional financial obligation a condominium owner might face that a salesperson should disclose?
- AA proprietary lease renewal fee every five years.
- BAnnual property taxes on the individual unit, separate from common charges.
- CMonthly rent payments to the condominium association.
- DA mandatory membership fee for the building's co-op board.
Show answer & explanationAnswer & explanation
Correct answer: B. Annual property taxes on the individual unit, separate from common charges.
Unlike cooperative owners who pay a monthly maintenance fee that often includes a share of the building's property taxes, condominium owners typically own their unit as real property and are assessed property taxes separately, directly from the municipality, in addition to their common charges.
Why the other options are wrong
- A. Proprietary leases are associated with cooperatives, not condominiums.
- C. Condominium owners pay common charges, not rent, to the association.
- D. Co-op boards are for cooperatives; condominium associations have boards, but membership fees are not typically a separate, significant financial obligation beyond common charges.
Condominium Owner Expenses
Condominium owners in New York are responsible for monthly common charges (for building maintenance, shared utilities, etc.) and additionally for individual property taxes assessed on their unit and potentially special assessments.
- Own unit as real property.
- Pay individual property taxes directly.
- Common charges cover shared expenses.
Memory trick: Common charges and taxes, separate acts.