A significant issue arises with this board's unilateral decision to raise the flip tax from 2 percent to 7 percent, without a vote or approval from shareholders.
Consulting the governing documents is crucial because any amendment regarding transfer fees typically requires a supermajority vote of shareholders, indicating how tightly controlled these changes generally are.
Shareholders should be concerned about the reason behind this large increase in the flip tax and how it aligns with the co-op's financial needs.
Delaying sales and conditioning them on potential changes could have serious implications for the marketability and value of units, reflecting fiduciary responsibilities.
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