A buyer is purchasing a $1,200,000 townhouse in New York City. Which of the following correctly identifies the transfer-related closing costs and the party customarily responsible for each?
Correct Answer
A) NY state transfer tax ($4,800) and NYC transfer tax ($17,100) paid by the seller; mansion tax ($12,000) paid by the buyer
In New York City, the NY state transfer tax ($4/thousand = $4,800 on $1.2M) and NYC transfer tax (1.425% on residential sales over $500K = $17,100) are customarily paid by the seller. The mansion tax (1% on purchases of $1M or more = $12,000) is always paid by the buyer. A buyer's agent must understand this allocation to accurately prepare clients for closing costs.
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