Transferring property in New York City requires multiple steps to ensure that the transfer is legal. These include completing a variety of forms, including some that are tax-related. Both the buyer and seller must be party to the completion of a property transfer form. In addition, both must sign the deed for the property to indicate the transfer. The property transfer form must then be filed with the city; only then is the change official. Even if the transfer occurs between family members, certain legal requirements must be considered and met to remain within the boundaries of the law.
How to Transfer a Deed in NY
When you sell, gift or donate property in New York City, both you and the property recipient must complete a property transfer form documenting the change. This document is called a real property transfer form. Your attorney can provide a copy of this for you if you don’t already have one. It should include information about the property and its value. You will also need to sign over the deed, which you should already have in your possession.
What to Do After Completing a Property Transfer Form
Once you’ve signed the deed, you also must, under New York City law, document the transaction with the New York City Office of the City Register to properly transfer the deed form. This required last step is critical, as only after doing so will the property transfer be official.
While filing your transaction with the Office of the City Register, you will also be required to complete a Real Property Transfer Tax Return. In nearly all instances, a filing fee will accompany the tax form. Since the transfer is therefore acknowledged by the New York State Department of Taxation and Finance, you will need to be sure that you properly account for any gift or capital gains taxes when you file your income tax for the year.
How to Transfer Property to a Family Member
Even when transferring property to a family member, you must follow the proper legal process. In New York City, you, the grantor, may transfer ownership of your property to a family member, the grantee, via a quitclaim deed for NY. This differs from the real property transfer form outlined above. While the quitclaim deed method is very simple, it doesn’t protect you from any future legal claims involving the property, as it only transfers your property interest.
Depending on the value of the property, you should know that both the grantor and grantee may be responsible for gift or capital gains taxes. Speaking with both an estate lawyer and a financial professional is a wise idea, since tax law can be complicated and is always changing.
Even with a quitclaim deed transfer, both parties will need to sign a transfer form acknowledging the property transfer. The form should then be notarized. The deed, signed by both parties, then has to be filed with the New York City Office of the City Register in order to be considered valid.