In New York, the seller is required to pay the transfer tax. The amount depends on the county which the property is located and in some counties, it depends on the type of property, i.e., vacant land, 1 family, or commercial property.
A special exception applies to transfer of new construction residential properties. It is the custom of the industry in new construction conveyances for the builder to pass the transfer tax payment to the purchaser. This is a contractual agreement that a purchaser agrees to pay the transfer tax (this is not imposed by any governmental authority). Some builders are adamant about transfer taxes being paid by the purchasers and are willing to let the purchasers walk away from the deal. Of course, I would ask if that were to happen what kind of market are we in – a buyer’s market or a seller’s market?
In New Jersey, it is typical that the seller pays the transfer tax even on new construction. In recent years, however, builders have attempted to pass the transfer tax onto the purchaser. Once again, this is contractual.
Even with a buyer’s market, I have seen builders stick to the contract to the detriment of losing a deal. I would most certainly ask under that scenario, why not build the transfer tax into the price.