Bulletin: NY000164

Date:
December 18, 1998
To:
All New York State Counsel, Managers and Agents Please alert your Attorney Customers
RE:
Real Estate Transfer Tax on Conveyances in the Peconic Bay Region of Suffolk County

Dear Associates:

The imposition of the additional transfer tax was approved by the voters of each of the affected towns in Suffolk County, by a referendum on November 3, 1998. Please refer to Underwriting Bulletin No. NY000160 for a summary of the provisions of the additional transfer tax.

The effective date in the Town of Southold will be for instruments presented for recording on and after March 1, 1999. The effective date for imposition of the tax in Riverhead, Shelter Island, East Hampton and Southampton will be April 1, 1999.

There are exemptions for conveyances pursuant to written contracts executed prior to adoption of the Local Law (i.e. November 3, 1998), and for the first $75,000 to $250,000 of consideration (depending on whether the premises is improved or unimproved, and in which town the premises is located. Rules for dealing with properties located partly in one town and partly in another ought to be promulgated with the transfer tax regulations.

The Suffolk County Treasurer will be providing a form to accompany payment of the tax, which is paid by the Grantee at the time of recording.

Where the premises to be insured is located in an affected Town, it would be appropriate to add a note in Schedule B of certificates of title, advising the parties that if closing takes place later than February 23rd or March 25th (or such other cutoff date the agent can deal with) the transfer tax will be picked up, unless the transaction is exempt on the basis of contract dated prior to November 3, 1998.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.