estate taxes (condo/house) at the closing. For a house purchase, you also will be obligated to reimburse the seller for any heating or cooking fuel left in a fuel storage tank. Additional Expenses When Purchasing From a Sponsor or Developer A developer or sponsor is the person or entity that has converted a building from a rental or commercial building to a co-op or condo or has constructed a new building. If you purchase a co-op or condo apartment from a developer or a sponsor, you may incur closing expenses in addition to those previously described. These additional expenses can be substantial and are detailed as follows: • Transfer Taxes. By law, the payment of transfer taxes is a seller’s obligation. However, if the seller is a sponsor or developer of new construction, they may require that you pay the New York State transfer tax and, if purchasing in New York City, the New York City real property transfer tax as well. The New York City transfer tax is calculated at the rate of one (l%) percent of the purchase price for individual co-op and condo apartments priced at less than $500,000, and one point four hundred twenty-five (1.425%) percent of the purchase price for individual co-op and condo apartments priced at $500,000 or more. There is no equivalent city transfer tax in Westchester, Nassau or Suffolk Counties, except for the Peconic Bay transfer tax which is applicable in portions of Suffolk County. The New York State transfer tax is imposed on sellers of individual co-op and condominium apartments, but also includes “any premises that may be used in whole or in part as personal residence including one, two or three family houses”. The tax rate is point four zero (0.40%) percent of the purchase price when the entire consideration for the sale is less than $3,000,000 and point six five (0.65%) percent of the purchase price when the entire consideration for the sale is $3,000,00 or more. If you purchase more than one co-op or condo apartment
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