Tuesday, June 28, 2011

Do I Lose Everything If I File Bankruptcy?

There are a combination of state and federal laws that protect you so that even if you owe a hundred times more debt than what you have in assets, you will not lose everything that you have and walk away penniless when you file bankruptcy to discharge your debt. The property exemption laws ensure that you get to keep some of your property so that you can continue to live. So what property is shielded from the reach of creditors? Here is a partial list of what is protected from creditors in the State of New York:

Tuesday, June 21, 2011

Who Pays What Tax When You Buy or Sell Your Home?

Depending on whether you purchase or sell your home or other property that you own, you may be responsible for New York State and New York City transfer taxes on the price of the property being sold.  Generally, the seller is responsible for both state and city transfer taxes in a sales transaction.  However, this responsibility can be passed on to the purchaser in a contract of sale or other agreement.  For example, generally, when buying into a  new condominium development, the developer will pass the burden of paying the transfer taxes onto the purchaser.  That means the purchaser should consider the amount of additional closing costs they will be paying, in the form of state and city transfer taxes, when buying into a new condominium development.  However, in a buyer's market, where real estate sales are not so frenzied, the developer may concede to bearing the burden of paying these transfer taxes or maybe half the taxes.  So how much are these transfer taxes? You can see some of the rates below.  And if you are planning to take a mortgage loan for your purchase, you will also be responsible for mortgage tax on the loan amount that you will be borrowing, as part of the closing costs that you will be incurring in your purchase.  See here for information on mortgage tax.

Tuesday, June 14, 2011

Mortgage Tax

New York City
Residential
For a loan amount less than $500,000.00, the rate is 2.05%.
The borrower pays 1.80% of the loan amount minus $30.00 if the property is a 1-2 family and the loan is $10,000.00 or more.  The lender pays .25% of the loan amount if the property is a 1-6 family.

For a loan amount of $500,000.00 or more, the rate is 2.175%.
The borrower pays 1.925% of the loan amount minus $30.00 if the property is a 1-2 family and the loan is $10,000.00 or more.  The lender pays .25% of the loan amount if the property is a 1-6 family.

Commercial
Properties that are not 1, 2, 3 family buildings or condos.
For a loan amount less than $500,000.00, the rate is 2.05%.  The borrower pays the entire amount.
For a loan amount of $500,000.00 or more, the rate is 2.80%.  The borrower pays the entire amount.


Westchester County except for Yonkers
Residential, the rate is 1.30%.
The borrower pays 1.05% of the loan amount minus $30.00 if the property is a 1-2 family and the loan amount is $10,000.00 or more.  The lender pays .25% of the loan amount if the property is a 1-6 family.

Commercial, the rate is 1.30%.  The borrower pays the entire amount.