Virtual Underwriter

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Bulletin: NY000529

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Bulletin: NY000529

Bulletin Document
V 1
Date: July 02, 2013
To: All New York State Agents, Office Counsel, and Managers
RE: Westchester County Recording

As of August 1, 2013, the Office of the Westchester County Clerk will enforce a provision in New York State Tax Law §1201(b),  in conjunction with local laws in Mount Vernon, Peekskill and Yonkers, requiring that local transfer tax must be paid BEFORE the recording of a conveyance paper in our office. 

  • This change impacts conveyances in Mount Vernon, Peekskill and Yonkers only.

  • Conveyance papers presented for recording on or afterAugust 1, 2013 must be supported by a stamped receipt provided by the relevant municipality if any portion of the property conveyed lies in Mount Vernon, Peekskill or Yonkers.

  • The Property Records Electronic Portal (PREP) System will automatically generate a bar-coded cover page which must accompany the local transfer tax receipt.

  • No additional recording fee is due in connection with the submission of the local transfer tax receipt.

  • A stamped receipt is required whether or not local transfer tax is due.

  • Local transfer tax continues to be paid directly to the local municipality.

  • If a package was initially submitted prior to August 1, 2013, but the conveyance paper was rejected, the requirement of providing a stamped receipt will be waived provided the conveyance paper, and any accompanying documents which were also rejected, are resubmitted on or before September 2, 2013.

For your convenience, we include a link to a chart prepared by the New York State Land Title Association which summarizes the procedure for filing local transfer tax returns in Mount Vernon, Peekskill and Yonkers.  The Office of the Westchester County Clerk will not collect either the local transfer tax return or the local transfer tax.   You can call the PREP help line about this new requirement at (914)995-3111.

Stewart suggests that you have the parties to a transaction prepay the tax and bring the payment receipt to closing so that you may record the subject deed or require the title closer to go directly to the local municipality and pay the tax then submit the recording  package to your office.   Please pay special attention to the 15 day time limit to record without transfer tax penalties.

If you have any questions please contact John Frates at jfrates@stewart.com or call 212-922-0050 and speak with any Agency Legal Services counsel.

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.

References