A property in Queens sells for $695,000. The buyer pays $139,000 cash and obtains a mortgage for the remaining $556,000. If the seller agrees to pay a 2% buyer credit at closing, what is the New York State transfer tax?
Correct Answer
B) $2,780
New York State transfer tax is calculated on the full sale price regardless of buyer credits or financing arrangements. $695,000 ÷ $100 = 6,950 units. 6,950 × $0.40 = $2,780.
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Broker Tom is explaining closing costs to his buyer client for a property purchase in New York. The client asks who typically pays the New York State transfer tax. What should Tom tell his client?