How We Bill for Residential Transactions
Residential real estate transactions are charged on what we call a Target Fee. The Target Fee represents the fee for a transaction of normal scope. Most transactions are charged at the Target Fee.
But because many things can come up in a transaction that requires additional work, we also track our time, at a rate that is significantly discounted from our usual hourly rate. If this time is within 25% of the Target Fee, then we charge only the Target Fee. But if the time exceeds the Target Fee by more than 25%, we will charge the time. (We will also refund the difference if the time comes in more than 25% under the Target Fee.). We will send interim statements throughout the transaction, to keep you informed of how much time has been logged on your transaction.
We have worked with a variety of fee arrangements over the years, and both we and our clients seem to find it a very fair and workable approach.
Addendum to Client Guide: New NYS Transfer Taxes
Immediately after we produced the client guide that is linked above, the New York legislature passed a set of new real estate transfer taxes on high-value properties. Please take note of them if your transaction falls into this value range. These taxes apply to all condos, coops, and 1-3 family homes.
Taxes on Sellers:
For properties priced under $3M, the New York State transfer tax is $4 per $1,000 of purchase price.
For properties priced at or over $3M, the New York State transfer tax is now $6.50 per $1,000 of purchase price.
Taxes on Purchasers:
For properties priced at or over $1M but under $2M, there is a tax of 1.0% of the purchase price.
For properties priced at or over $2M but under $3M, there is a tax of 1.25% of the purchase price.
For properties priced at or over $3M but under $5M, there is a tax of 1.5% of the purchase price.
For properties priced at or over $5M but under $10M, there is a tax of 2.25% of the purchase price.
For properties priced at or over $10M but under $15M, there is a tax of 3.25% of the purchase price.
For properties priced at or over $15M but under $20M, there is a tax of 3.5% of the purchase price.
For properties priced at or over $20M but under $25M, there is a tax of 3.75% of the purchase price.
For properties priced at or over $25M, there is a tax of 3.9% of the purchase price.
New York City Taxes:
The taxes noted above are taxes imposed on all properties in the State of New York. There is an additional real property transfer tax on all properties within the City of New York. This tax was not changed in the new legislation and remains as stated in the client guide.
Commercial Leasing: Negotiating To Achieve Results
For the first seven years of his career, Ron worked in international corporate law firms on major real estate deals, such as the Times Square redevelopment and the creation of the High Line. He also negotiated scores of leases all over the United States and handled lease reviews and assignments in multi-billion-dollar corporate transactions. So, when you have a commercial lease for an office, a store, or other business, you can rely on our expertise.
We take a realistic approach to negotiation, focusing on agreements that work for both parties and establish a sound, long-term relationship between landlord and tenant. This approach has been praised time and again by our client’s brokers. It also saves time and keeps your bill to a manageable level. At the same time, we raise every issue that will advance your interest, to ensure that you have a lease that you can live with for a good long time. By setting a cooperative, rather than an adversarial tone, we are able to obtain concessions and compromises for your benefit.
Investing in Your Future & Making Sure It’s Protected
When difficult situations arise, we are there to protect you. Most deals go smoothly, but some require a fight. We are tough negotiators. When someone starts yelling, we keep our cool and stand our ground. At the same time, we know that cooperative solutions are usually the best way forward, and we always aim to find a solution that will advance everyone’s interests.
With our depth of experience in both estate and real estate matters, we can go beyond handling your transaction and advise on issues that involve both your home and your estate plans. A good example is in finding ways to tap the equity in an appreciated property, to increase liquidity in retirement, and allow you to remain at home in your older age.