Vanguard News Image

Important Amendment to NYS Transfer Tax Law

New York State Tax Law, Section 1402-a, has been amended, effective July 1, 2021, to eliminate the requirement to include the amount paid a Grantee as part of the contract consideration where the Grantee has contractually agreed to pay the Real Estate Transfer Tax on the sale of a 1 - 3 family house (or condominium unit).

You may recall that the Tax Law historically required Transfer Tax, if paid by the Buyer, to be included in calculating the amount of the consideration, resulting in a higher amount of Transfer Tax being payable. By this amendment, in cases where the transfer tax is, by contract, payable by the grantee, beginning July 1st it will no longer be necessary to “gross-up” the consideration by the amount of the Transfer Tax where the property is a 1, 2 or 3 family house.

Also, the person responsible for paying the tax, if on behalf of an entity, may be personally liable to the grantor if the tax is not paid when due. It has been suggested that if the attorney for such a party has agreed to pay the transfer tax, and fails to do so, personal liability may extend to the attorney. Because of this, attorneys who hold Powers of Attorney or other agreements to close for their clients, and pay transfer taxes, etc., should carve out that obligation. 

For further information, see New York State Budget, Section “O”,

Vanguard Research & Title Services, Inc.
Vanguard Research & Title Services, Inc. is a full-service research and title insurance provider offering comprehensive real property research, title insurance products, and services throughout the State of New York. If there is a service you require that we do not currently provide, please contact us about building a custom solution for you.
CORPORATE OFFICES:
407 South Warren Street, Syracuse, New York 13202
315-422-6031 | 800-294-3740
Privacy Policy | Rates & Fees | Blog | Newsletter | Contact Us
© 2012- Vanguard Research & Title Services, Inc. All rights reserved.
RESEARCH SERVICES
Abstracts of Title
Court Records
Corporate Services
Government Projects
More…
TITLE SERVICES
Commercial
Residential
Industrial
More…

TLA# 1361055 - Licensed Title Insurance Agent with the New York State Department of Financial Services.
Vanguard Research & Title Services, Inc. is a full-service research and title insurance provider offering comprehensive real property research, title insurance products, and services throughout the State of New York.
CORPORATE OFFICES:
407 South Warren Street, Syracuse, New York 13202
315-422-6031 | 800-294-3740
OFFICE LOCATIONS
Onondaga County | Oswego County
POLICY ISSUING AGENT FOR
Fidelity National Title Insurance Company
Chicago Title Insurance Company
Old Republic National Title Insurance Company
Commonwealth Land Title Insurance Company
WFG National Title Insurance Company
© 2012- Vanguard Research & Title Services, Inc.
All rights reserved.

Privacy Policy | Rates & Fees | Blog | Newsletter | Contact Us
TLA# 1361055 - Licensed Title Insurance Agent with the New York State Department of Financial Services.

We use cookies to offer you a better browsing experience, analyze site traffic, personalize content, and serve targeted promotions. If you continue to use this site, you consent to our use of cookies. Click here to review our privacy policy.