Transfer tax (RPTT and NYS)

The full definition

Taxes on the conveyance itself, one City and one State. Rates step up at higher prices, and who pays is set by custom and then confirmed by the contract.

Also called: RPTT, Real Property Transfer Tax.

Which related terms should you know?

These are the terms that come up alongside transfer tax (rptt and nys) in the same file.

Mansion tax

A New York State tax paid by the buyer on residential conveyances of one million dollars or more, graduated upward through a series of higher price tiers.

Closing statement

The itemized accounting of every credit, debit and disbursement at a closing. Commercial deals use a HUD-1 or ALTA settlement statement; consumer mortgage closings pair it with the Closing Disclosure.

Flip tax

A transfer fee charged by a co-op or, less often, a condominium when a unit changes hands. It is a creature of the building's governing documents, not a government tax.

Mortgage recording tax

The New York tax due when a mortgage is recorded, computed on the new money secured. On a building with six or fewer apartments the lender pays 0.25 points of the combined rate and may not pass it to the borrower, so a buyer there budgets 1.8 or 1.925 percent rather than the full rate. A CEMA is the standard structure used to reduce the taxable amount.

Recording

Filing an instrument with the register or county clerk so it becomes part of the public record. Recording establishes priority against later purchasers and lenders.

What else should you read before closing?