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Showing posts from July, 2013

Legal Line Question of the Week: Transfer Taxes and Grossed up Consideration

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Legal Line Question of the Week - REBNY Transfer Taxes and Grossed up Consideration I represent the prospective purchaser of a new construction condominium  unit. In speaking with the sales office for the sponsor, I was informed that  my purchaser is responsible for paying both the New York City and  New York State transfer taxes.  I thought that the obligation to pay transfer  taxes was the  r esponsibility of the seller.  Can you please explain? Generally, when real property (or a co-op apartment) is sold in New York  City, the seller is responsible for paying both the New York State and  New York City transfer taxes.  In residential real estate transactions  where the purchase price is greater than $500,000, the New York City  transfer tax equals 1.425% of the purchase price (and where the purchase  price is $500,000 or below, the New York City transfer tax is 1% of the  purchase price).  The New York State transfer tax is .4% of the purchase  price. New Yo