Who pays the transfer tax on a bank owned property?

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Who pays the transfer tax on a bank owned property?

How can the amount be reduced if the buyer has to pay? What fees/cost must the seller pay?

Asked on June 10, 2012 under Real Estate Law, New York

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

I think that you should seek help from an experienced real estate attorney as there are some open questions here about the status of the proerpty. Generally the transfer tax is paid by the grantor (seller). However, if the grantor doesn't pay the tax, or is exempt from the tax, the grantee (buyer) must pay the tax. That tax is computed at a rate of two dollars for each $500, or fractional part thereof, of consideration.  There is also an additional a 1% "mansion" tax for residences where consideration is $1 million or more. The additional 1% real estate transfer tax is paid by the grantee. If the grantee is exempt, the grantor must pay the tax. Sellers also pay realtor fees.  Good luck.




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