NYS & NYC Transfer TAX

I’m in contract to purchase a condo.  Are the State and City transfer taxes something I can negotiate the seller into covering on the closing cost?

OneOneTwoZeroOne

in Accounting 13 years and 6 months ago

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nathanmick | 13 years and 3 months ago

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At one time, in my experience, the taxes were the responsiblity of the buyer. Then, we entered the ‘dark ages’ in the late 2000s in which realtors and home sellers were throwing in all kinds of extras, including certain taxes and fees. In some cases, ALL of them were covered, entirely!
Now, we’re entering a turnaround in the market, so some of those perks might not be offered anymore. According to http://www.movoto.com, the California markets are really about to pop. Hold on to your seatbelts, folks!

OneOneTwoZeroOne | 13 years and 6 months ago

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Great news!!!  The sponsor has aggreed to cover my closing cost.

rcltrh | 13 years and 6 months ago

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But I will add, make sure everything you agree on in the offer and acceptance gets into the actual contract that both sides sign.  If it’s not written in the contract, it doesn’t exist.

rcltrh | 13 years and 6 months ago

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Since you haven’t actually signed the contract, then you are really still in the offer and acceptance stage so feel free to put those things in your offer and see whether they fly or not.  Sometimes they will, sometimes they won’t, and sometimes you can meet in the middle.  A lot will depend on how hot the property is, how high or low your offer is, and whether they have other offers without those kinds of stipulations.

OneOneTwoZeroOne | 13 years and 6 months ago

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I havent signed the contract.

vthatcher | 13 years and 6 months ago

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Good news is- if the seller has a mortgage you can assign there mortgage to you and pay the difference in the mortgage tax. Call me if you have questions. I do this all the time. Vanessa Thatcher Atlantic Home Capital 631-687-3510 x106

rcltrh | 13 years and 6 months ago

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If you’re actually in contract then you’re pretty much tied to what you negotiated in said contract.  Usually those kinds of things are made in the offer and then put into the contract and both parties agree on whatever it says at the time when both sign. Read the contract and see who has agreed to pay what.   If you are still in negotiation stage and haven’t actually signed the contract, (technically considered NOT in contract) then anything goes with what you propose and what they accept.  Contracts can always be amended but if you agreed to pay something and now want them to amend the contract where they are paying something else then they don’t have to agree to it and you would be bound to what it currently says.

megazoid | 13 years and 6 months ago

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When I purchased my house I believe the Seller and I almost equally split the City/County tax (which was the larger amount) and the Seller paid the State tax. This was a house, not condo, and I have no idea if this is standard practice. The original Good-Faith Estimate bank statement was telling me I’m responsible for 100% of the transfer tax, however the final HUD statement showed the taxes split between the Seller and Buyer. Not sure if this was something that my lawyer has negotiated (highly doubt it since we had a pretty bad lawyer :))