Legal Question in Real Estate Law in New York

Real Estate Transfer Tax

With respect to transfers of real property in New York City, there is a transfer tax (RPT) imposed. However, where a pre-existing mortgage (i.e., made by the seller)exists and is part of the consideration, the law allows the amount of the continuing lien (the mortgage) to be deducted from the taxable consideration. What is the rationale for the ''continuing lien deduction''?


Asked on 9/12/06, 5:05 pm

1 Answer from Attorneys
Phroska L. McAlister PHROSKA LEAKE McALISTER

Re: Real Estate Transfer Tax

If "credit" or "allowance" on portion of consideration covered by a mortgage, was not given, it would be tantamount to or could result in "double taxation."

Good luck,

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Answered on 9/13/06, 12:05 pm


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