Dan Fe Bland v. Two Trees Management Co. Et Al‪.‬

[66 N.Y.2d 556 Page 559] Opinion OF THE COURT A fee on the transfer of shares in a cooperative apartment corporation (commonly called a flip tax) may not be imposed by the corporation's board of directors, when the bylaws of the corporation authorize the board to impose on such a transfer and assignment only a reasonable fee to cover actual expenses and attorneys' fees of the Corporation, a service fee of the Corporation and such other conditions as it may determine. Nor may a flip tax which is not in proportion to the shares held by the assignor be imposed under either the cash [66 N.Y.2d 556 Page 560]