Hamptons Closing Costs

Peconic Bay Preservation Fund:

The Peconic Bay Region Community Preservation Fund

Tax is a one time 2% transfer tax on all real property sales in the 5 Townships of the East End including the Town of East Hampton, the Town of Shelter Island, The Town of Southampton, the Town of Riverhead and the Town of Southold. Currently the tax will remain in effect as it stands until April 1, 2023 (as of this publication 1/12/23).

Effective April 1, 2023, the allowances have increased and in certain circumstances have been eliminated. Below are the new current allowances for transactions in the townships and the new allowances. On April 1, 2023 the tax will be increased to 2.5% of the purchase price which will now include a .5% tax for affordable housing in the townships of East Hampton, Shelter Island, Southampton and Southold. The Township of Riverhead will not have the additional .5% tax for affordable housing.

East Hampton: $250,000 - Improved, $100,000 Vacant (Unimproved).

Shelter Island: $250,000 - Improved, $100,000 Vacant (Unimproved).

Southampton Town: $250,000 - Improved, $100,000 Vacant (Unimproved).

Riverhead Town: $150,000 - Improved, $75,000 Vacant (Unimproved)

Southold: $150,000 - Improved, $75,000 Vacant (Unimproved)

MortgageRecordingTax:

In the Hamptons, when a purchaser purchases a home there is a mortgage recording tax. This tax is equal to .80% of the purchase price in Suffolk County and is paid by the buyer in the transaction.

LenderFees:

When choosing a lender to work with, the lender will give a buyer a good faith estimate of closing costs. The fee's a buyer must pay to the lender are an appraisal fee, credit report fee and loan origination fees.

MansionTax:

The Mansion Tax is an additional tax of 1% of the sale price for residential purchaser where the sales price is $1,000,000 or more. This tax is paid by the purchaser of the property.

TitleFees:

Title is the right to own and use the property a buyer is purchasing. Title fees are a group of fees associated with closing costs. These fees are paid to a title company to search, review, adjust, insure and record the title of the property being purchased. The title company will perform a title search to find any potential issues with the title, such as encumbrances or liens. The company can then make any changes and ensure that their findings are correct. A buyer has the right to use whatever title company they would like and can shop around for this closing cost.

Title fee's are paid by the purchaser. It is customary that a title closer will also be given a tip paid for by the buyer at closing for their services.

TransferTax:

Depending on your agency relationship with your real estate agent, the commission due will either be paid by the seller from the proceeds of the sale or to the buyers agent by the purchaser at closing.

For further information, please discuss with your agent.

BrokerFees: PropertyConditionDisclosureCredit:

This official NY State form is called a Property Condition Disclosure Statement. This form consists of 48 questions for the seller to answer about the condition of the property being sold.

When a seller is listing a property for sale, the seller has the option to fill out this form or give the purchaser a $500.00 credit at closing. If the seller fills out this form, it will be given to the purchaser prior to contract signing.

AttorneyFees:

In the Hamptons, a buyer and seller both have attorneys to facilitate the sale of the property. Attorney fee's are paid by the seller to the sellers attorney and by the buyer to the buyers attorney.

These fee's vary by attorney, so please contact your attorney directly.

Adjustments:

At the closing table there are a few other fee's that may be paid by the seller or the buyer.

These fees will include, oil that is still in the oil tank, gas that still in the propane tank, pre-paid real estate taxes and any other credits that were negotiated between the buyer and seller prior to closing.