By statute (NY Tax Law Section 1401) the tax is payable by the Grantor unless otherwise stated in the contract of sale. So even though it is customary for a Grantee to pay the tax on new residential construction, the contract of sale still needs to state that the Grantee pays the transfer tax.
You need to look to the contract for your answer.
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Karen Hagen
Attorney
Karen J. Hagen, Attorney at Law
Riverhead NY
+1 (516) 982-2112
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Original Message:
Sent: 01-17-2023 01:37
From: Lydia Ruggiero
Subject: Transfer taxes on new construction?
Hi all!!
I have a question regarding New York new construction transfer taxes. Typically in residential NY transactions the buyer pays all transfer taxes on a new construction home but if the builder decides to rent out the home for a year does the first buyer still have to pay all the initial new construction closing costs ?
Thank you everyone have a great day!
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Lydia Ruggiero
Title reader
Stewart Title Insurance Company
New York NY
+1 (718) 689-0665
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