Taxes on transfer of House (New York, York: sales, homeowners insurance, attorney)

[kvilhauer70]

My wife's father recently passed away. Both her and her sister were on the deed. Her sister wants to buy her out. I understand the transfer tax that says we pay $2 for every $500. But her sister is saying that we also have to pay some 8.5% tax. I cannot find anything about this tax. By the way we are not residents of New York if that makes any difference.

[gx89]

Transfer tax is $4 per $1000. There is no sales tax on houses. You will have to pay some BS county fees for title.

[twingles]

8.5% is sales tax....there's no sales tax on sale of a house. If the house is over $1 MIL that's another tax.

The house is in NY, correct?

[Elke Mariotti]

Originally Posted by twingles

8.5% is sales tax....there's no sales tax on sale of a house. If the house is over $1 MIL that's another tax.

The house is in NY, correct?

You're most likely referring to the mansion tax which is paid by the buyer(s).

Usually seller pays transfer tax, attorney fees, recording fees and title closer.

Buyer pays attorney fees, title insurance, recording fees, title closer (if mortgage, assorted other fees plus escrow). Optional: home inspection, survey, appraisal. Of course buyer should get homeowners insurance from day of title transfer.
Need to discuss: how to allocate RE taxes paid (reimbursement or not)

If title search comes up with any issues, that would need to be addressed prior to closing (open permits, etc.)

[twingles]

Originally Posted by Elke Mariotti

You're most likely referring to the mansion tax which is paid by the buyer(s).

.)

Yeah but I refuse to call it that since the vast majority of houses it applies to on LI are far from mansions.

[Elke Mariotti]

Originally Posted by twingles

Yeah but I refuse to call it that since the vast majority of houses it applies to on LI are far from mansions.

Very true.