Transfer Taxes

It's probably the 1% mansion tax, which is payable by the buyer. The other transfer taxes are paid by the seller.

@nwt, the price is lower than $1 million, so there is no mansion tax. Thanks.

Sounds like mortgage recording tax

buyers don't have to pay unless it is new dev.

It may be something that's paid by sellers. My GFE contained all closing costs for buyer AND seller... Look carefully and somewhere it should show what costs you actually pay. For me, it's about 2/3 of the total closing costs in the GFE.

It's a co-op, so no mortgage recording tax.

How about asking the lender who wrote the GFE?

It's a "flip" tax, most likely that goes directly to the building. Usually the seller pays, but as with everything, it's negotiable who pays.

ilinc - what % of the closing price is the "transfer tax" on your gfe?

I had the same "shock" when I received my gfe last week.

The transfer tax is usually paid by the seller, but is included on the gfe (or as my broker said, "the worst faith estimate") because it is a possible cost at closing.

The difference on my estimate was 60K (with transfer) vs 20K (without)

I wouldn't be too concerned with it. It is just an estimate. The lender doesn't determine the mortgage, transfer, mansion taxes. However, they are required to estimate it and list it regardless of who pays it or whether it is paid or not. Your attorney can advise you as to what the closing costs are. Simple add that to the lender's fees (fees determined by the lender) and that will give you a better idea of your closing costs. Your lender can explain to you which are fees determined by the bank and which are not. Sunny.hong@decapitalmortgage.com NMLS 483661