During a real estate closing in New York, the buyer's attorney discovers that the mansion tax was not included in the closing cost estimate. The property sold for $1,350,000. What action should be taken?
Correct Answer
D) The mansion tax must be paid before the deed can be delivered
The mansion tax must be paid at closing before the deed is delivered to the buyer. The tax is a prerequisite to completing the transfer, and the closing cannot be finalized without payment of all required taxes and fees.
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More Ny Tax Law Questions
All of the following property transactions in New York would be subject to the mansion tax EXCEPT:
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During a real estate closing in New York, the closing agent must ensure proper collection and remittance of transfer taxes. What happens to the New York State transfer tax after it is collected at closing?
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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?
- → An individual residential Brooklyn property is considered at $500,000 and then at $500,001. How much does the NYC RPTT amount due increase when consideration rises by that $1?
- → 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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A real estate agent is explaining closing costs to a buyer purchasing a $800,000 home in Queens. Regarding mansion tax, what should the agent tell the buyer?
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Patricia is purchasing a $1,950,000 brownstone in Brooklyn. She is making a 25% down payment and financing the remainder. What mansion tax will she pay at closing?