In New York, Seller pays the brokerage fee which is then divided between the respective seller’s and the buyer’s broker. If a buyer does not have a broker, then the seller’s broker typically collect all the fees.

The interest paid on the mortgage of your primary residence is tax deductible and reduces your income tax liability.

Any primary residence or rental investment property in the U.S. is eligible for 1031. Generally, if you exchange business or investment property solely for business or investment property of a like-kind, no gain or loss is recognized under the U.S. Internal Revenue Code Section 1031. If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized. The time limit to do a like-kind exchange is 180 days to take possession or to sign the closing paperwork for the new property. Only properties within the U.S. are eligible for this like-kind exchange. We encourage clients who intend to acquire property through 1031 exchange to contact us for further information.

In the recent years, many potential home buyers have had the experience of working with agents who would help them find their homes without realizing that these agents were in fact working for the seller of the property, and not for the buyer. Therefore, these home buyers want their own agents to represent them. An exclusive buyer representative is an agent who works strictly with potential home buyers.

Closing costs are approximately 3 to 5 percent of the loan amount for buyers with a mortgage and 1 to 1.5 percent for cash buyers. The closing costs typically include mortgage tax, transfer taxes if purchasing a new development, attorney fees, recording taxes, etc. Please use our closing costs calculator for a more accurate estimate of your closing costs.

Tax abatement refers to programs that encourage developers to continue building and growing in targeted neighborhoods. 421-A, 421-G, and J-51 are examples of tax abatement programs. Owners of units in buildings with tax abatement programs typically pay a low percentage of real estate taxes for a defined period of time and they can be as little as $8 dollars a month.

The typical monthly expenses for condominium units are property taxes, common charges, insurance and mortgage payments (if applicable). New development buildings often have a tax abatement, which dramatically reduces the monthly tax amount. Annual taxes are often between 0.5 to 1 percent of the property’s value without abatement. Common charges average $1 per square foot per month. Insurance costs approximately $500 to $1000 annually.

Real estate taxes, also known as property taxes, are taxes levied on real estate by the government for services rendered. The taxes are typically based on the value of the property. New York property tax is assessed by taking the value of a property, and applying the current rate of tax, which is subject to change, to that value. Since the value of property can go up or down, depending on market conditions, the real estate taxes may also change.

We work closely with experienced attorneys that specialize in setting up legal entities that may help minimize the tax liability for your beneficiary.