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?
Correct Answer
D) The transfer tax payment can be negotiated between buyer and seller in their contract
New York law does not specify which party must pay the transfer tax. It is a negotiable item that can be allocated between buyer and seller as they agree in their purchase contract.
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More Ny Tax Law Questions
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- → All of the following transactions would be subject to New York State transfer tax at $0.40 per $100 of consideration EXCEPT:
- → Sarah is selling her home in Rochester, New York for $180,000. At closing, she notices the New York State transfer tax on her settlement statement. Who is responsible for paying this transfer tax?
- → Michael is purchasing a residential property in Buffalo for $950,000. His real estate agent explains the various taxes due at closing. Regarding the New York State mansion tax, which statement is correct?
- → Jennifer is purchasing a $2.8 million penthouse in Manhattan. Her attorney mentions that in addition to the New York State mansion tax, there may be additional NYC transfer taxes. Which statement correctly describes the tax obligations for this transaction?
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- → Who is responsible for paying NYC transfer tax in a typical real estate transaction?
- → A buyer is purchasing a $750,000 condominium in Manhattan, New York City. In addition to the New York State transfer tax, what additional NYC transfer tax will be imposed on this transaction?
- → A real estate broker is preparing a net sheet for a seller of a $450,000 condominium in Queens, NYC. The broker needs to calculate the total transfer taxes that will be deducted from the seller's proceeds. What is the combined New York State and NYC transfer tax amount?
- → A seller transfers a Manhattan condominium for $850,000. Under NYC's Real Property Transfer Tax (RPTT), what is the total NYC RPTT owed at closing (statutorily imposed on the grantor)?
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Previous Question
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?
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A real estate attorney in New York is reviewing transfer tax requirements for a client's property sale. The attorney notes that New York's transfer tax system differs from some other states. What is a key characteristic of New York's transfer tax?