New York conveyance law governs how real property changes hands in the state, and a valid transfer depends on four things working together: the right deed, a properly acknowledged signature, timely recording with the county clerk or City Register, and payment of the taxes and disclosures the transaction triggers. Miss any one of them and you can end up with a deed that is legally weak, unrecordable, or expensive in ways you did not budget for. What follows is a practical walk-through for buyers, sellers, and anyone transferring property within a family.
Choosing the Right Deed
The deed you use decides how much the seller guarantees and how much risk the buyer carries. Four types show up regularly in New York.
Warranty Deed
A warranty deed gives the buyer the strongest protection. The seller guarantees clear ownership, promises the property is free from liens or encumbrances not listed in the deed, and agrees to defend the title against later claims. If a title defect surfaces after closing, the buyer can sue for breach. Real Property Law Section 258 supplies the statutory covenant language, including the seller’s representation of lawful ownership in fee simple.1New York State Senate. New York Real Property Law RPP 258 Because the exposure is broad, many sellers prefer something narrower.
Bargain and Sale Deed
This is the workhorse of New York residential sales. It implies the seller has an ownership interest but stops short of the full warranty deed guarantees. It comes in two versions:
- With covenants against grantor’s acts: the seller promises they personally did nothing during their ownership to create liens or encumbrances. Sometimes called a limited warranty deed, this is the standard for arm’s-length residential sales.
- Without covenants: the seller makes no promises about what happened during their ownership. Common in foreclosure sales, tax lien auctions, and estate transfers where the seller knows little about the property’s history.
Neither version guarantees a clean title back to the beginning, which is why buyers routinely pair a bargain and sale deed with title insurance.
Quitclaim Deed
A quitclaim deed transfers whatever interest the seller has, without promising that interest is worth anything. If the seller had no ownership, the buyer has no legal claim against them. Quitclaims turn up in transfers between family members, between divorcing spouses, and in cleanup of clouded titles. If you accept a quitclaim in a purchase, get an independent title search; the deed itself gives you nothing to rely on.
Executor’s Deed
When real property passes through an estate, the executor or administrator appointed by the Surrogate’s Court uses an executor’s deed. It functions like a bargain and sale deed with covenants: the executor warrants their authority to make the transfer and their own noninterference with the title, but makes no guarantees about the pre-death chain. Title insurance matters here, because probate transfers sometimes carry gaps in the record or unresolved claims by other heirs.
Signing and Acknowledgment
New York does not require witnesses for a deed to be valid, but the seller’s signature must be acknowledged before an authorized official. Real Property Law Section 298 lists who can take an acknowledgment within the state, including notaries public, judges, court clerks, and county recording officers.2New York State Senate. New York Real Property Law 298 – Acknowledgments and Proofs Within the State The seller appears before the official, confirms the signature was voluntary, and the official completes a certificate of acknowledgment. Without that certificate, the county clerk will not record the deed. It may still bind the parties to each other, but it offers no protection against later buyers or creditors.
If someone signs on behalf of the seller under a power of attorney, that document has its own formalities. Under General Obligations Law Section 5-1501B, a New York power of attorney must be signed, initialed, and dated by the principal, acknowledged the same way a deed is acknowledged, and witnessed by two people who are not named as agents.3New York State Senate. New York General Obligations Law 5-1501B – Creation of a Valid Power of Attorney When Effective Deeds executed outside New York must satisfy either New York’s acknowledgment rules or the rules of the state where signed.
Recording the Deed
An acknowledged deed can be recorded with the county clerk where the property sits, or with the City Register in New York City. Recording is not what makes the deed effective between seller and buyer. It is what protects the buyer against everyone else.
New York is a race-notice state under Real Property Law Section 291. An unrecorded deed is void against a later purchaser who buys in good faith, pays value, and records first.4New York State Senate. New York Real Property Law 291 – Recording of Conveyances In plain terms: if you buy a property and sit on the deed, and the seller sells it again to someone who records first, you can lose the property. Record promptly.
Forms That Must Accompany the Deed
The county clerk will not accept a deed by itself. Two forms travel with it in nearly every transaction.
Form TP-584 is a combined return covering the state real estate transfer tax, a credit line mortgage certificate, and a certification tied to estimated personal income tax. Nonresident sellers who do not qualify for an exemption on the form must separately file Form IT-2663 or IT-2664 to handle their estimated state income tax on the sale proceeds.5Tax.NY.Gov. Instructions for Form TP-584
Form RP-5217, the Real Property Transfer Report, documents the transaction. Both buyer and seller must sign it personally. An agent’s signature is not enough unless the transfer is involuntary, such as eminent domain or tax foreclosure.6NYC.gov. RP-5217NYC Real Property Transfer Report Instructions
Indexing and Electronic Recording
Once accepted, the deed is indexed under both parties’ names so future title searches can trace the ownership chain. That indexing is what gives the world constructive notice of the transfer. When indexing goes wrong, a later buyer’s search may miss the deed entirely, and untangling the resulting competing claims can be expensive.
Many counties now accept electronic recording of deeds and mortgages through approved service providers, an option state law has permitted since 2011. Not every county participates. Confirm availability with the specific county clerk before assuming you can e-record.
What the Transfer Will Cost in Taxes
New York layers several taxes onto a single sale. In New York City, a residential closing can trigger four or more separate taxes and fees, and the combined bite is among the highest in the country.p>
State Real Estate Transfer Tax
The state imposes a transfer tax on every conveyance where the consideration exceeds $500. The base rate is $2 per $500 of consideration, or 0.4% of the price. The seller pays. If the seller fails to pay or claims an exemption, the buyer becomes liable.7Department of Taxation and Finance. Real Estate Transfer Tax – Tax Expenditure Estimates
An additional state charge applies in cities over one million in population. Under Tax Law Section 1402, residential conveyances of $3 million or more, and all other conveyances of $2 million or more, pay an extra $1.25 per $500 (0.25%).8New York State Senate. New York Tax Law 1402 – Imposition of Tax That brings the combined state rate to 0.65% on qualifying high-value transfers.
Mansion Tax
Separately, New York imposes a 1% mansion tax on residential conveyances of $1 million or more. The buyer pays.7Department of Taxation and Finance. Real Estate Transfer Tax – Tax Expenditure Estimates
New York City residential sales of $2 million or more carry a graduated supplemental mansion tax on top of the base 1%. The supplemental rate climbs with price, from an added 0.25% at the $2 million tier to an added 2.90% at $25 million and above.9Tax.NY.Gov. Summary of Amendments to New York Real Estate Transfer Taxes A $5 million Manhattan apartment, for example, pays the 1% base plus a 1.25% supplemental rate, for a combined 2.25% mansion tax on the full price. The supplemental rates were added in 2019 and apply only to residential property in New York City.
New York City Real Property Transfer Tax
New York City adds its own transfer tax on sales of $25,000 or more. The rate depends on property type and price:
- Residential, $500,000 or less: 1%
- Residential, over $500,000: 1.425%
- All other transfers, $500,000 or less: 1.425%
- All other transfers, over $500,000: 2.625%
The seller customarily pays.10NYC.gov. Real Property Transfer Tax (RPTT)
Mortgage Recording Tax
Buyers who finance the purchase pay a mortgage recording tax that catches many first-time purchasers by surprise. The state portion includes a basic tax of $0.50 per $100 of mortgage debt, a special additional tax of $0.25 per $100, and an additional tax of $0.25 to $0.30 per $100 depending on whether the property sits in the Metropolitan Commuter Transportation District. Counties and cities can add another $0.25 to $0.50 per $100.11Tax.NY.Gov. Mortgage Recording Tax
In New York City, the combined mortgage recording tax typically runs 1.8% to 2.175% of the loan for residential mortgages, depending on loan size. On a $500,000 mortgage, that is roughly $10,000 or more at closing. The buyer generally pays. Co-op purchases are exempt because the loan is secured by shares in a corporation, not by a recorded mortgage on real property.
Seller Disclosure Obligations
Property Condition Disclosure Statement
New York’s Property Condition Disclosure Act requires sellers of residential property with one to four dwelling units to deliver a Property Condition Disclosure Statement to the buyer before the buyer signs a binding contract of sale.12New York State Senate. New York Real Property Law 462 – Property Condition Disclosure Statement The form runs 56 questions covering structure, environmental hazards, mechanical systems, water and sewage, and other property characteristics. The seller must answer every question with yes, no, unknown, or not applicable.
This matters more now than it used to. Until March 2024, sellers could skip the form entirely by giving the buyer a $500 credit at closing. Chapter 484 of the Laws of 2023, effective March 20, 2024, eliminated that option. Disclosure is mandatory.13New York State Department of State Division of Licensing Services. Property Condition Disclosure Statement A seller who knowingly gives false or incomplete answers can be sued by the buyer for actual damages. Checking “unknown” for something the seller actually knows about can create the same liability.
Cooperative and condominium unit sales are generally exempt from the PCDA, because co-op shares are personal property and condo transactions run on their own governing documents.
Lead-Based Paint Disclosure
For any residential property built before 1978, federal law requires the seller to disclose known lead-based paint hazards, provide the buyer with an EPA pamphlet, and give the buyer a 10-day opportunity for a lead inspection before the contract binds. Noncompliance can produce liability for triple the buyer’s damages plus civil and criminal penalties.14Environmental Protection Agency. EPA Lead-Based Paint Program Frequent Questions Given how much of New York’s housing stock predates 1978, this applies to a large share of sales.
Title Insurance and Marketable Title
Title insurance covers losses from defects in the property’s ownership history: undisclosed liens, forged deeds, recording errors, claims by unknown heirs. Unlike most insurance, it covers problems that already exist but have not been discovered.
New York does not require title insurance by law, but almost every mortgage lender requires a lender’s policy as a financing condition. That policy protects the lender, not you. To protect your own equity you need a separate owner’s policy. Both are paid as a one-time premium at closing, at rates regulated by the New York State Department of Financial Services.
New York courts have tied title insurability to marketable title. Standard contracts include an implied obligation for the seller to deliver marketable title, and if a buyer cannot obtain title insurance, that obligation may not be met regardless of what the deed says. In practice, title insurance is close to essential for New York transactions, especially in older neighborhoods where the chain of title can run back centuries.
Co-ops and Condos Follow Different Rules
If you are buying a cooperative or a condominium, some of what appears above does not apply the way it does to a house or a raw parcel.
A co-op purchase is not a real property transfer at all. You buy shares in a corporation that owns the building, plus a proprietary lease for a specific unit. The board can approve or reject buyers with wide latitude and little explanation, the financing is a share loan rather than a mortgage, and mortgage recording tax does not apply. Many buildings also charge a flip tax when a shareholder sells, typically 1% to 3% of the sale price, paid to the building’s reserve fund. Despite the name, this is a private transfer fee set by the co-op’s governing documents, not a government tax.
A condo purchase looks more like a conventional real estate transaction. You get a deed to your unit and an undivided interest in the common areas. Transfer taxes, mortgage recording tax, and recording requirements all apply the ordinary way. Condo boards generally cannot reject a buyer outright, but many hold a right of first refusal that lets the board match an outside offer within a set window. Before signing on a co-op or condo, read the governing documents (the proprietary lease or declaration, financial statements, and house rules) to understand your obligations as an owner.
Federal Tax at the Time of Sale
Two federal rules can hit sellers hard if they are not planned for.
Under Section 121 of the Internal Revenue Code, you can exclude up to $250,000 of gain on the sale of your principal residence, or up to $500,000 for married couples filing jointly, if you owned and used the home as your primary residence for at least two of the five years before the sale.15Office of the Law Revision Counsel. 26 USC 121 – Exclusion of Gain From Sale of Principal Residence A surviving spouse who sells within two years of the other spouse’s death can also claim the $500,000 exclusion. Gain above the exclusion is taxed at federal capital gains rates, and New York State imposes its own income tax on the gain.
If the seller is a foreign person or entity, the buyer must withhold 15% of the total purchase price under the Foreign Investment in Real Property Tax Act and remit it to the IRS.16Internal Revenue Service. FIRPTA Withholding This is a prepayment of the foreign seller’s expected U.S. tax liability, not an added tax; the seller files a U.S. return to reclaim any overpayment. Buyers who fail to withhold can be held personally liable for the full 15%. Any deal involving a foreign seller belongs in front of a tax professional who handles FIRPTA regularly.