Frequently Asked Questions
Here are some common questions and answers for buyers and sellers of Hampton's real estate. If you are looking for a Hampton's real estate agent who wants to help you succeed contact Clare today.
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What is the Peconic Land Tax and does it apply to me?
When do I need a lead disclosure?
Can I see houses with you that are listed by another agency?
How much do I put down at contract signing?
What is the Peconic Land Tax and does it apply to me?
The Peconic Land Trust was established in 1983 to protect Long Island's farmland and open space. Since then, the Trust has worked diligently with farmers, developers, and other landowners to preserve over 6,500 acres of land. The Trust's professional staff carries out the necessary research and planning to identify and implement alternatives to outright development. In working to protect the farmland and open space of Long Island, the Trust is also preserving the unique rural heritage and natural resources of the region.
Payable by the purchaser at time of closing due as the Peconic Transfer Tax:
2% on the consideration of improved property over $250,000
2% on the consideration of unimproved (vacant) property over $100,000
How much are closing costs?
For the seller:
New York State Real Property Transfer Tax (“ Deed Stamps”)
0.4% of purchase priceOther closing costs to the seller include attorney fees, brokerage commission and if necessary costs to remedy non compliance issues.
For the purchaser:
Town Transfer Tax (East Hampton, Southampton and Shelter Island)
2% on the consideration of improved, property over $250,000.
2% on the consideration of unimproved (vacant) property over $100,000.Mortgage Recording Tax
1% of mortgage, paid by mortgagor (.2 % of mortgage recording tax is generally paid by the lending institution resulting in a cost to mortgagor of . 8% of the amount of the loan)Additional New York State Real Property ("Mansion") Tax
1% of consideration paid for residential property (including 1-3 family dwellings or a single
Cooperative Apartment or Condominium Unit) sold for $1,000,000 or more. Paid by purchaserTitle Insurance
Transactions without financing (Approximate)
$250,000 to $500,000: $1,200 to $2,200
$501,000 to $750,000: $2,201 to $3,000
$751,000 to $999,000: $3,001 to $4,000
$1,000,000 to $1,999,999: $4,001 to $7,100
Title insurance for financed (i.e. mortgage loan) transactions will cost approximately 12% over the above rates.Other costs to purchaser at closing may include legal fees, survey, applications for certificate of occupancy, fuel adjustments, inspections, credit to seller for property taxes and if there is a mortgage, additional fees such as application, appraisal, credit, legal, points, property insurance, mortgage insurance, prepayment of property tax as well as a mortgage payment. If there is a mortgage involved, the lender will provide a written estimate of closing costs. If there is not a lender, it is recommended that the purchasers ask their attorney for such an estimate prior to signing a contract of sale.
* For informational purposes only, the actual Tax and Title Costs may be different, please consult your attorney
Who pays the commission?
In most case scenarios the seller and/or landlord pays the agreed upon commission to the agency.
When do I need a lead disclosure?
Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavior problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The sale of any interest in residential real property is required to provide the buyer with any information on lead-based poison from risk assessments or inspections in the seller’s possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based hazards is recommended prior to purchase.
What is the NYS disclosure?
The following is the NYS disclosure.
NYS Disclosure Regarding Real Estate Agency Relationships
Before you enter into a discussion with a real estate agent regarding a real estate transaction, you should understand what type of agency relationship you wish to have with that agent.
New York State requires real estate licensees who are acting as agents of buyers or sellers of property to advise the potential buyers or sellers with whom they work of the nature of their agency relationship and the rights and obligations it creates.
Seller's or Landlord's Agent
If you are interested in selling or leasing real property, you can engage a real estate agent as a seller’s agent. A seller’s agent, including a listing agent under a listing agreement with the seller, acts solely on behalf of the seller. You can authorize a seller’s or landlord’s agent to do other things including hire subagents, broker’s agents or work with other agents such as buyer’s agents on a cooperative basis. A subagent is one who has agreed to work with the seller’s agent, often through a multiple listing service. A subagent may work in a different real estate office.
A seller’s agent has, without limitations, the following fiduciary duties to the seller: reasonable care, undivided loyalty, confidentiality, full disclosure, obedience and a duty to account. The obligations of a seller’s agent are also subject to any specific provisions set forth in an agreement between the agent and the seller.
Buyer's or Tenant's Agent
If you are interested in buying or leasing real property, you can engage a real estate agent as a buyer’s or tenant’s agent. A buyer’s agent acts solely on behalf of the buyer. You can authorize a buyer’s agent to do other things, including hire subagents, broker’s agents or work with other agents such as seller’s agents on a cooperative basis.
The buyer’s agent has, without limitation, the following fiduciary duties to the buyer: reasonable care, undivided loyalty, confidentiality, full disclosure, obedience and a duty to account.
The obligations of a buyer’s agent are also subject to any specific provisions set forth in an agreement between the agent and the buyer.
In dealings with the seller, a buyer’s agent should (a) exercise reasonable skill and care of the agent’s duties; (b) deal honestly, fairly and in good faith; and (c) disclose all facts known to the agent materially affecting the buyer’s ability and/or willingness to perform a contract to acquire seller’s property that are not inconsistent with the agent’s fiduciary duties to the buyer.
Broker's Agent
As part of your negotiations with a real estate agent, you may authorize your agent to engage other agents whether you are a buyer/tenant or seller/landlord. As a general rule, those agents owe fiduciary duties to your agent and to you. You are not vicariously liable for their conduct.
Agent Representing Both the Seller and Buyer
A real estate agent acting directly or through an associated licensee can be the agent of both seller/landlord and the buyer/tenant in a transaction, but only with the knowledge and informed consent, in writing, of both the seller/landlord and the buyer/tenant.
In such a dual agency situation, the agent will not be able to provide the full range of fiduciary duties to the buyer/tenant and seller/landlord.
The obligations of an agent are also subject to any specific provisions set forth in an agreement between the agent and the buyer/tenant and seller/landlord.
An agent acting as dual agent must explain carefully to both the buyer/tenant and seller/landlord that the agent is acting for the other party as well. The agent should also explain the possible effects of dual representation, including that by consenting to the dual agency relationship the buyer/tenant and seller/landlord are giving up their right to undivided loyalty.
A BUYER/TENANT OR SELLER/LANDLORD SHOULD CAREFULLY CONSIDER THE POSSIBLE CONSEQUENCES OF A DUAL AGENCY RELATIONSHIP BEFORE AGREEING TO SUCH REPRESENTATION.
General Considerations
You should carefully read all agreements to ensure that they adequately express your understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal, tax or other advice is desired, consult a competent professional in that field.
Throughout the transaction you may receive more than one disclosure form. The law requires each agent assisting in the transaction to present you with this disclosure form. You should read its contents each time it is presented to you, considering the relationship between you and the real estate agent in your specific transaction.
Can I see houses with you that are listed by another agency?
Yes. All houses, regardless of the listing agency or agent, are available to be shown. I have access to all houses on the market through our comprehensive listing system and the internal co-broke agreement system between Hampton’s agencies. If you see a house that interests you, but is not a Brown Harris Stevens of the Hamptons Exclusive, just let me know where you saw it and I can arrange an appointment for preview.
What is an Exclusive Listing?
An Exclusive Right to Sell sales listing agreement means that if you, the property owner, or another broker, finds a buyer for your property, you must pay the agreed upon commission to the agency.
An Exclusive Agency sales listing agreement means that if you, the property owner, find a buyer for your property without the assistance of a broker, you will not owe a commission to the agency. However, if you, the property owner, sell the property through a broker other than the agency and its sub-agents, you will owe a commission to the agency as well as the other broker.
How much do I put down at contract signing?
The customary down payment at contract signing is 10% of the purchase price. These monies are held in an IOLA account, Interest on Lawyers Account, and contributed to the down payment on the mortgage if applicable. If you intend to put down less than 10% you must disclose this at the time of the offer and have it agreed upon by the seller.