New York — Taxes & Land Use — New York Real Estate — State Law Practice Test

This New York Real Estate — State Law New York — Taxes & Land Use practice set has 8 practice questions based on the official exam materials, each with an instant explanation.

Sample questions

Three questions from the New York — Taxes & Land Use bank with the correct answer and an explanation. The practice quiz above draws 8 questions at random from the same bank.

1. What is the New York State real estate transfer tax rate on a conveyance of real property, and who customarily pays it?

   • $2 for each $500 of consideration, paid by the grantor (seller) — Correct answer
   • $2 for each $500 of consideration, paid by the grantee (buyer)
   • 1% of the full purchase price, paid by the seller
   • $0.70 for each $100 of consideration, paid by the seller

   Explanation: Under Tax Law §1402 the NY State transfer tax is $2 for each $500 (or fraction) of consideration — about 0.4% — and the GRANTOR (seller) is the party liable to pay it. (Separate additional transfer taxes may apply in certain localities such as NYC.) English term — Transfer tax（转让税）: a tax on the conveyance of real property. NY source: Tax Law §1402 (Article 31).

   Handbook: New York Taxes — State transfer tax (Tax Law §1402)

2. In New York, the 'mansion tax' adds an extra tax on certain real property sales. At what consideration does it begin, on what kind of property, and who pays it?

   • 1% of consideration on residential property of $1,000,000 or more, paid by the buyer — Correct answer
   • 1% on all property of $500,000 or more, paid by the seller
   • 2% on commercial property of $1,000,000 or more, paid by the buyer
   • 1% on residential property of $2,000,000 or more, paid by the seller

   Explanation: Under Tax Law §1402-a the NY mansion tax is an additional 1% of the consideration when residential real property sells for $1,000,000 or more; it is paid by the GRANTEE (buyer). It applies to a one-to-three family house, an individual condo unit, or a co-op apartment unit. English term — Mansion tax（豪宅税）: an extra 1% tax on residential sales at or above $1M. NY source: Tax Law §1402-a.

   Handbook: New York Taxes — Mansion tax (Tax Law §1402-a)

3. A buyer is purchasing a $1,200,000 co-op apartment in New York City. Which statement about NY transfer/mansion taxes is correct for this co-op sale?

   • Both the state transfer tax and the 1% mansion tax apply, because they reach co-op share transfers — Correct answer
   • No transfer tax applies because a co-op is personal property, not real property
   • Only the mansion tax applies; the state transfer tax never applies to co-ops
   • Neither tax applies until the price reaches $2,000,000

   Explanation: NY's transfer tax (§1402) and mansion tax (§1402-a) apply to co-op share transfers, not only to deeded real property — a co-op is shares of stock + a proprietary lease, but the statutes expressly reach cooperative apartment units. So the $1.2M co-op triggers the 1% mansion tax (buyer) and the state transfer tax (seller). In NYC an additional NYC Real Property Transfer Tax (RPTT) also applies. English term — RPTT（纽约市不动产转让税）: NYC's own additional transfer tax. NY source: Tax Law §§1402, 1402-a.

   Handbook: New York Taxes — Co-op transfers & NYC RPTT (Tax Law §§1402, 1402-a)