From Avenue Law Firm – Who Pays Transfer Taxes at Closing? dives deep into the practical realities of real estate transfer taxes within the New York market. Whether you’re buying or selling a co-op, condo, townhouse, or commercial building, this episode unpacks who is responsible for the state and local taxes at closing, and how those obligations can shift depending on circumstances.
In the first half, we’ll explore what the Real Property Transfer Tax (RPTT) and the Mansion Tax are, and how they apply in New York City and across New York State. From the standard base rate of $2 for every $500 of consideration to the incremental fees on properties above $1 million or $3 million, listeners will gain clarity on how these taxes are calculated and why they matter at closing.
Next, we’ll break down the roles of the seller (grantor) and buyer (grantee) in transfer tax payment. We’ll discuss the typical default where the seller pays the base tax, but also cover the exceptions — for example, when the buyer becomes responsible in cases like the mansion tax, when the seller fails to pay, or when LLCs and other entities trigger additional filing requirements. We’ll also touch on key forms like Form TP-584 and TP-584-NYC, and what it means when an entity claims an exemption.
Finally, we wrap up with the consequences of non-compliance: penalties, interest, legal liability, and liens if taxes aren’t paid or filings aren’t made on time. Whether you’re a first-time homebuyer, seasoned investor, or real estate professional, this episode will equip you with the knowledge you need to navigate New York’s transfer tax landscape with confidence.
Avenue Law Firm
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