NY RE Salesperson · Cheat Sheet
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| Calculation | Formula | Payer/Note | |
|---|---|---|---|
| NYS Transfer Tax | Sale Price × 0.004 | Seller | |
| NYC Transfer Tax | Sale × 0.01 (if <$500K) Sale × 0.01425 (if ≥$500K) | Seller | |
| Mansion Tax | Sale × 0.01 | BUYER (residential ≥$1M only) | |
| Mortgage Recording Tax | Loan Amount × rate | Borrower (NYC ~1.8%, upstate varies) | |
| Commission | Sale Price × Rate × Agent Split % | From seller | |
| NOI (Income Approach) | Gross Annual Rent − Vacancy − Op. Exp. | For cap rate/value | |
| Cap Rate Value | NOI ÷ Cap Rate = Value | Income approach | |
| Gross Rent Multiplier | Sale Price ÷ Monthly Rent | Quick value check | |
| Value by GRM | Monthly Rent × GRM | Income approach shortcut | |
| LTV (Loan-to-Value) | Loan ÷ Appraised Value | Expressed as % | |
| Annual Proration (30-day) | Annual Expense ÷ 12 ÷ 30 × Days Used | Buyer/seller split | |
| Building Depreciation | Cost ÷ Life (27.5 yrs residential; 39 commercial) | Tax deduction | |
| Threshold/Rule | Tax/Fee | Who Pays | Exception |
| Transfer Tax | All residential sales | Seller | |
| $500K+ | Higher NYC rate (1.425%) kicks in | Seller | |
| $1M+ (residential) | Mansion tax 1% | BUYER | Commercial exempt |
| Mortgage Recording | ~1.8% in NYC; varies upstate | Borrower | CEMA avoids re-recording |
| Flip Tax (co-op) | 0–2% typical, % varies | Seller → building reserve | Condo = no flip tax |
| Scenario | Calculation | Note | |
| Full commission check | Sale × rate (e.g., 6%) | Goes to broker first | |
| Agent split | Commission × agent % | Vary by brokerage agreement | |
| Procuring cause dispute | Commission goes to listing broker if agent created condition | Agency/contract law | |
| Buyer's broker co-op | Part of MLS commission or negotiated | Must be stated in listing | |
| Item | Co-op | Condo | |
| Title | Stock + proprietary lease (personal property) | Fee simple unit (real property) | |
| Mortgage | Share loan (UCC Article 9; board approval) | Standard mortgage (note + mortgage) | |
| Flip Tax | Seller pays (to reserve fund) | None | |
| Transfer Tax | Applies to sale price | Applies to sale price | |
| Property Tax Class | Class 2 (45% assessment ratio) | Class 2 or varies | |
| Financing hurdle | Board approval of unit & borrower | Standard lender review | |
| Approach | Best For | Key Metric | |
| Sales Comparison | Residential; condos | $ Adjustments for comps | |
| Cost | New construction; tear-downs | Land + Building − Depreciation | |
| Income | Rentals; multi-family; investment | NOI; Cap Rate; GRM | |
| Reconciliation | Final value | Weight by reliability | |
| Class | Property Type | Assessment Ratio | |
| 1 | 1–3 family homes | 6% | |
| 2 | Apartments; co-ops; condos | 45% | |
| 4 | Commercial/industrial | 45% | |
| STAR Exempt | Seniors (Basic/Enhanced) | Deduction on tax bill | |
| Mistake | Correct Rule | ||
| Mansion tax = seller | Mansion tax = BUYER (residential ≥$1M) | ||
| Proration over 365 days | Use 360-day method (30-day months) or specify given method | ||
| Co-op = real property | Co-op stock = personal property (key NY rule) |
Aligned to the New York DOS salesperson exam outline.
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