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:
- 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
- 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.
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.
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!
Expiring Tax Breaks for Real Estate Investors
Real estate investors might be interested in the information recently provided by a 1031 Exchange Agent unaffiliated with our firm. Check out the changes in their newsletter:
New Mortgage Lending Rules Go Into Effect
Prospective purchasers looking to obtain financing should be aware of the new mortgage lending rules that just went into effect. An easy to understand article on the topic can be found at:
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
Changes to Yonkers Real Property Transfer Tax
Are you familiar with the recent amendments to the City of Yonkers City Code, which have altered the payment schedule for real property transfer taxes? As a resident of Yonkers looking to sell you current property, or as an individual looking to purchase property in Yonkers, it is important to know that all transfer taxes must now be paid within 7 days after the delivery of the deed from seller to purchaser, whereas the former code used to allow for a period of 30 days. Further, the City Code states that the purchaser shall be liable for the payment of this transfer tax in the event that the seller is exempt from paying the tax, which could impact the purchaser’s search for appropriate financing.
This new change to the rules pertaining to real property transfer taxes could impact the overall financial planning around a purchase or sale. The attorneys at Weidenbaum & Harari, LLP are well versed in transfer taxes and are able to help explain to our clients, whether sellers or prospective purchasers, how the new transfer tax regulations in Yonkers could impact them and their overall deal.
The following link will direct you to the transfer tax webpage from the City of Yonkers, which contains a Real Estate Transfer Tax Form, as well as a very brief explanation of the current code.
First NYC Co-Op?
Are you looking into purchasing your first co-op here in New York City? The process can definitely be quite daunting and complicated for those who have never done it before, and many questions can arise from start to finish.
Take a look at this article from Curbed that will help provide you with a basic understanding of what is going to be required of you during the co-op purchase process. It may make your first co-op purchase in New York City go just a little more smoothly.
WH Firm Hosts Title Insurance Update Seminar
Weidenbaum & Harari, LLP recently hosted TitleVest, one of the leading providers of title insurance throughout the nation, in our Manhattan office. They interacted with our attorneys and staff through a presentation of recent developments in title insurance field. This presentation continues to keep our office up to date on the most recent developments in title insurance and the best way to prepare for any title insurance issues that may be encountered. Our firm is well prepared for any questions or concerns that our clients may have, and such courses keep us at the forefront of any title insurance issues our clients may encounter during their transaction.
Recent WH quotes in the NY Times
Congratulations to Barry Weidenbaum for being quoted in two separate editions of the New York Times. One article entitled, “Coop-Board to Buyer nah not at that price” regarding the board’s power during the board approval process and one entitled,”The Take it on Faith Condo” about buying new construction based on the offering plan.