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Showing posts from April, 2019

When is Time Really "Of the Essence"

WHEN IS TIME REALLY "OF THE ESSENCE" We can probably all agree that time is a precious commodity in short supply during the course of our working day. We change the clock in March of each year to make better use of daylight hours and preserve energy; yet, we complain that this annual event negatively impacts our time to sleep. As real estate professionals we encounter the issue of time when clients tell us they are not ready to sign a contract of sale because the due diligence period is not completed, the buyer has to liquidate funds for the requisite contract deposit, the bank has not issued a loan commitment within the time period required in the contract of sale, the seller cannot close when anticipated because the property she is purchasing has met some unexpected delays or the buyer would rather close at the end of the month so as to not incur additional per diem mortgage interest. No matter what the excuse or the reasoning behind the request of a party for additional t…

New York State New Transfer and Mansion Tax Law

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REAL ESTATE AGENTS- TRANSFER AND MANSION TAX INCREASES WILL AFFECT YOUR CLIENTS' TRANSACTION COSTS Effective July 1, 2019, all real estate closings in the State of New York will be affected by the recent increases in the transfer and mansion taxes but the new law will not apply to conveyances made pursuant to binding contracts entered into on or before April 1, 2019 even if the transaction closes after July 1, 2019. The purchaser and/or seller will have to prove the date of execution by independent evidence such as a recorded contract, payment of a deposit on contract or other facts and circumstances determined by the NYS Commissioner of Taxation and Finance. Clearly, when you are discussing the costs to be incurred by a seller or a purchaser ready to enter into a contract of sale, it is imperative that you provide your client/customer with accurate information and knowing the particulars of the new tax laws imposed by New York State is of the utmost importance. As an attorney pract…