Changes to New York State Form TP-584

Changes to New York State Form TP-584

The New York State Department of Taxation and Finance has made several important revisions to Form TP-584. Form TP-584 is filed with each conveyance of real property and is used to comply with the filing requirements of the real estate transfer tax, the tax on mortgages, and any applicable exemption from estimated personal income tax where it applies to the sale or transfer of cooperative units or real property.

As of April 15, 2013, there will be several important revisions made to the form. These changes include, but are not limited to:

  1. A checkbox for “Single Member LLC” has now been added for both Grantor/Transferor and Grantee/Transferee. If either is selected, the single-member LLC must then complete the fields pertaining to “Name” and “Identification Number”; and
  2. The Grantor shall now list under the location and description of the property the Statewide Information System Code (“SWIS”). The following are the relevant codes for New York City: Bronx (600100), Brooklyn (610100), Manhattan (620100), Queens (630100), and Staten Island (640100).

The old Form TP-584 will be accepted by the Department of Taxation and Finance until June 15, 2013, at which time it will be mandatory to file only the new form. The new form, which will be denoted with (4/13) in the upper left-hand corner, can be found at:

http://www.tax.ny.gov/pdf/current_forms/property/tp584_fill_in.pdf

Should you require any instructions on how to properly fill out the new Form TP-584, please feel free to contact our attorneys at Weidenbaum & Harari, LLP, or check out the link below, which provides instructions for the new form.

http://www.tax.ny.gov/pdf/current_forms/property/tp584i.pdf

Ethics Opinion on the “Grossing Up” of a Real Estate Contract of Sale

An important ethics opinion recently weighed in on the practice of some real estate professionals of “grossing up” the contract of sale and providing an equivalent credit at closing to offset the grossed up price. The opinion says that when the purchase price in a contract is “grossed up” and combined with an equivalent seller’s concession, the lawyer who participates in the transaction is ethically required to ensure that the grossing up of the price is disclosed in the contract.

If you would like to read the opinion and the history surrounding it in its entirety, it can be found here.

Condos, Co-ops, Cond-ops…Any Questions?

As you begin your hunt for a place to call home here in New York City, you might need a brush-up course in the differences between co-ops, condos, and cond-ops. The following short article from Curbed may answer some of the more common questions.

Click Here for Curbed Article

Of course, if you have other questions about condos, co-ops, or anything else related to New York real estate, feel free to give us a call at 212-832-7400 or email us at info@www.whfirm.com!

Changes to Offering Plan Escrow Regulations

As a participant in a new public offering of interests in a condominium, it is important to understand the recent changes to escrow regulations which went into effect on March 1, 2013.  The amendment to the escrow regulations will have an effect on both new offering plans as well as on some existing offering plans.  In short, the revised regulations will, among other things, eliminate the Attorney General’s role in dispute resolution concerning the disposition of any funds in connection with the sale of a cooperative interest in realty that have been placed in escrow.

Weidenbaum & Harari, LLP has worked actively on new offerings that have adopted the new methods required under this escrow amendment.

For the full list of changes to the regulations, here is a link to the Attorney General’s website:

http://www.ag.ny.gov/real-estate-finance-bureau/revised-escrow-regulations