Bulletin: NY000164

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.