New York, NY – Peter Zinkovetsky, Esq., founder and managing partner of Avenue Law Firm (https://www.avenuelawfirm.com/who-pays-transfer-taxes-at-closing/), has released practical guidance clarifying who pays transfer taxes at closing across New York State and New York City. The resource explains how state and local rules apply to residential and commercial deals, outlines filing requirements, and identifies common pitfalls at the closing table. As a New York real estate attorney serving local and international clients, Zinkovetsky underscores that transfer tax planning is a core component of a clean, timely conveyance.
The publication details the baseline rules that shape closing costs and responsibility allocations. In most transactions, the seller pays New York’s state real estate transfer tax, generally calculated at $2 for every $500 of consideration. The guidance also addresses the buyer-paid mansion tax that applies to residential properties at or above the $1 million threshold, typically assessed at 1 percent of the purchase price. For deals within New York City, the Real Property Transfer Tax adds a municipal layer, with rates that rise at higher price bands. The analysis explains how these amounts interact, how they appear on closing statements, and how parties may negotiate responsibility within a purchase agreement while remaining compliant. The New York real estate attorney further highlights that clarity in contract language reduces disputes and minimizes post-closing adjustments.
Beyond headline rates, the guidance walks through documentation and timing. Outside New York City, parties file Form TP-584 with the county clerk, generally within 15 days of delivering the deed, while New York City filings proceed through ACRIS using Form TP-584-NYC alongside the city’s RPTT return. Transactions claiming exemptions still require complete filings and supporting letters that cite the governing provision. Where an LLC is a party for a one-to-four family dwelling, additional ownership disclosures are required for natural persons. The New York real estate attorney outlines potential consequences for late or omitted filings, including interest, penalties, docketed judgments, and delays in recording.
The resource also addresses special scenarios that frequently affect timing and allocation. If a seller fails to remit a required transfer tax, liability can become joint and several, allowing the buyer to pay at closing and pursue recovery under contract. High-value residential sales in New York City may trigger supplemental city rates; the guidance illustrates how incremental brackets can materially change the total tax outlay. Exempt entities and conveyances remain a narrow category, covering government transfers, certain corrective deeds, gifts, and changes in ownership structure that do not alter beneficial ownership. Additional reporting requirements for residential deed transfers taking effect on or after September 13, 2019 are noted for accurate compliance.
Rounding out the analysis, the firm provides illustrative calculations. A $300,000 sale outside New York City would incur a state transfer tax computed from the $2 per $500 rate. A $1.5 million residential purchase would add a 1 percent mansion tax. A $3 million New York City transaction would include city RPTT in addition to state tax and any mansion tax, with the exact total driven by the applicable brackets. Clear, advanced computations help parties align on credits, debits, and prorations before closing and reduce the risk of last-minute delays.
About Avenue Law Firm:
Avenue Law Firm represents buyers, sellers, developers, investors, and businesses in residential and commercial real estate transactions throughout New York City and surrounding counties. The firm’s practice includes acquisitions and sales, condominium and cooperative matters, financing, leasing, and related business transactions. Led by Peter Zinkovetsky, Esq., the team serves both local and international clientele with offices in New York, NY. For consultations and additional information, contact (212) 729-4090 or visit the firm’s website to schedule a confidential consultation.
Embeds:
Youtube Video: https://www.youtube.com/watch?v=MmmWr4AFC2M
GMB: https://www.google.com/maps?cid=14223199020890935024
Email and website
Email: peter@avenuelawfirm.com
Website: https://avenuelawfirm.com/
Media Contact
Company Name: Avenue Law Firm
Contact Person: Peter Zinkovetsky
Email: Send Email
Phone: (212) 729-4090
Address:505 Park Ave Suite 202
City: New York
State: New York 10022
Country: United States
Website: https://avenuelawfirm.com/