Bargain and Sale Deed with Covenant Against Grantor's Acts - New York

BARGAIN AND SALE DEED WITH COVENANT AGAINST GRANTOR'S ACTS

(New York's Form of Special Warranty Deed)

State of New York

Recording Requested By:
_____________________________________________

After Recording Return To:
_____________________________________________
_____________________________________________
_____________________________________________

Tax Map Designation:
Section: _______ Block: _______ Lot: _______

SPACE ABOVE THIS LINE FOR RECORDER'S USE

DOCUMENT INFORMATION

BARGAIN AND SALE DEED WITH COVENANT AGAINST GRANTOR'S ACTS

CONSULT YOUR LAWYER BEFORE SIGNING THIS INSTRUMENT - THIS INSTRUMENT SHOULD BE USED BY LAWYERS ONLY

This Indenture, made the _____ day of _________________, 20_____

ARTICLE I: PARTIES

Section 1.1 Grantor(s) (Party of the First Part)

BETWEEN:

_____________________________________________
(Name)

residing at _____________________________________________
_____________________________________________

Marital Status:
☐ Single
☐ Married
☐ Unmarried
☐ A _________________ [entity type], having an office at _____________________________________________

hereinafter referred to as the "Grantor" or "Party of the First Part"

Section 1.2 Grantee(s) (Party of the Second Part)

AND:

_____________________________________________
(Name)

whose post office address is _____________________________________________
_____________________________________________

Vesting:
☐ Single
☐ Married
☐ As joint tenants with right of survivorship (and not as tenants in common)
☐ As tenants in common
☐ As tenants by the entirety
☐ A _________________ [entity type], having an office at _____________________________________________

hereinafter referred to as the "Grantee" or "Party of the Second Part"

ARTICLE II: CONVEYANCE

Section 2.1 Granting Clause

WITNESSETH, that the party of the first part, in consideration of $_____________________ (____________________ Dollars) lawful money of the United States, and other good and valuable consideration paid by the party of the second part, does hereby GRANT AND RELEASE unto the party of the second part, the heirs or successors and assigns of the party of the second part forever:

Section 2.2 Legal Description

ALL that certain plot, piece or parcel of land, with the buildings and improvements thereon erected, situate, lying and being in the:

☐ Borough of _________________, City of New York
☐ Town of _________________, County of _________________
☐ Village of _________________, County of _________________
☐ City of _________________, County of _________________

State of New York, bounded and described as follows:

See Schedule "A" annexed hereto and made a part hereof.

Tax Map Designation: Section _______ Block _______ Lot _______

Property Address: _____________________________________________

ARTICLE III: COVENANT AGAINST GRANTOR'S ACTS

Section 3.1 Limited Covenant

The party of the first part covenants that the party of the first part has not done or suffered anything whereby the said premises have been encumbered in any way whatever, except as aforesaid.

Section 3.2 Effect of Covenant

This covenant warrants ONLY that the Grantor has done nothing during Grantor's ownership to encumber the property. This deed does NOT contain full warranty covenants and does NOT provide:

• A covenant of seisin
• A covenant of right to convey
• A covenant against encumbrances created by prior owners
• A covenant of quiet enjoyment
• A covenant of further assurance

Section 3.3 Limitation of Warranty

NOTICE: This is a BARGAIN AND SALE DEED WITH COVENANT AGAINST GRANTOR'S ACTS, which is New York's form of a special warranty deed. The covenant contained herein is LIMITED to claims arising from acts of the Grantor only. This deed does NOT warrant against defects, liens, or encumbrances arising from acts of prior owners.

Section 3.4 Statutory References

This conveyance is made pursuant to:

• N.Y. Real Property Law § 258 (Short forms of deeds)
• N.Y. Real Property Law § 291 et seq. (Recording requirements)
• N.Y. Tax Law Article 31 (Real estate transfer tax)

ARTICLE IV: SUBJECT TO CLAUSE

Section 4.1 Subject To

TOGETHER with all right, title and interest, if any, of the party of the first part in and to any streets and roads abutting the above described premises to the center lines thereof;

TOGETHER with the appurtenances and all the estate and rights of the party of the first part in and to said premises;

SUBJECT TO:

(a) Zoning regulations, restrictions, and ordinances now or hereafter adopted by any governmental authority having jurisdiction;

(b) Consents by the party of the first part or any former owner of the premises for the erection of any structures on, under, or above any streets or highways;

(c) Building restrictions, easements, and covenants of record, if any;

(d) Encroachments of stoops, areas, cellar steps, trim, and cornices, if any;

(e) State of facts an accurate survey would show;

(f) Real property taxes for the fiscal year beginning _________________, 20_____, not yet due and payable;

(g) The following specific exceptions:

☐ None

☐ As set forth below:
_____________________________________________
_____________________________________________

ARTICLE V: TRANSFER TAX INFORMATION

Section 5.1 New York State Transfer Tax (Tax Law Article 31, § 1402)

Consideration: $_____________________

☐ Base Rate (all conveyances statewide): $2.00 per $500 or fractional part thereof (0.4%)

NOTICE: The higher combined rate below applies ONLY to property located in New York City (or any other city in New York State with a population of one million or more), and only for conveyances on or after July 1, 2019. Outside such cities, the base rate of 0.4% applies regardless of consideration.

☐ Additional Base Tax (NYC/cities of 1,000,000+ population only): an additional $1.25 per $500 (0.25%) applies — for a combined rate of $3.25 per $500 (0.65%) — when consideration is $3,000,000 or more for residential real property, or $2,000,000 or more for any other (non-residential) real property.

NYS Transfer Tax Due: $_____________________

Section 5.2 Mansion Tax / Additional Tax (Tax Law § 1402-a) and Supplemental Tax (Tax Law § 1402-b)

☐ Not Applicable - Consideration is less than $1,000,000, or property is not residential real property

☐ Applicable (statewide base rate, Tax Law § 1402-a) - 1% of consideration for residential real property (a one-, two-, or three-family house, individual condominium unit, or cooperative apartment unit) where the consideration for the entire conveyance is $1,000,000 or more. Tax is paid by the grantee (buyer); if the grantee fails to pay or is exempt, the grantor becomes liable.

NOTICE: For residential real property located in New York City (or any other city in New York State with a population of one million or more), an ADDITIONAL supplemental tax (Tax Law § 1402-b) applies on top of the 1% base rate when consideration is $2,000,000 or more, producing the following combined mansion tax rates:

Outside such cities, the flat 1% rate under § 1402-a applies with no supplemental tax.

Mansion Tax Due: $_____________________

Section 5.3 New York City Real Property Transfer Tax (NYC Admin. Code § 11-2102) (if applicable)

☐ Not Applicable - Property not in NYC
☐ Residential $500,000 or less: 1.0%
☐ Residential over $500,000: 1.425%
☐ Other transfers $500,000 or less: 1.425%
☐ Other transfers over $500,000: 2.625%

NYC Transfer Tax Due: $_____________________

Section 5.4 Transfer-tax return

Use Form TP-584 for property outside New York City, or Form TP-584-NYC for property in New York City. Complete the applicable return and submit it to the recording officer with this deed. For City Register filings, prepare the NYC real property transfer tax packet through ACRIS.

ARTICLE VI: EXECUTION

Section 6.1 Testimonium Clause

TO HAVE AND TO HOLD the premises herein granted unto the party of the second part, the heirs or successors and assigns of the party of the second part forever.

AND the party of the first part covenants that the party of the first part has not done or suffered anything whereby the said premises have been encumbered in any way whatever, except as aforesaid.

AND the party of the first part, in compliance with Section 13 of the Lien Law, covenants that the party of the first part will receive the consideration for this conveyance and will hold the right to receive such consideration as a trust fund to be applied first for the purpose of paying the cost of the improvement and will apply the same first to the payment of the cost of the improvement before using any part of the total of the same for any other purpose.

IN WITNESS WHEREOF, the party of the first part has duly executed this deed the day and year first above written.

GRANTOR (Party of the First Part):

_____________________________________________
Signature

_____________________________________________
Printed Name

_____________________________________________
Signature

_____________________________________________
Printed Name

ARTICLE VII: ACKNOWLEDGMENT

Section 7.1 New York Acknowledgment (Individual)

STATE OF NEW YORK
COUNTY OF _________________ ss.:

On the _____ day of _________________ in the year 20_____, before me, the undersigned, a Notary Public in and for said State, personally appeared:

_____________________________________________

personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument.

_____________________________________________
Notary Public

[NOTARIAL SEAL]

Section 7.2 New York Acknowledgment (Entity)

STATE OF NEW YORK
COUNTY OF _________________ ss.:

On the _____ day of _________________ in the year 20_____, before me, the undersigned, a Notary Public in and for said State, personally appeared:

_____________________________________________

personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), as _________________________ [title] of _________________________ [entity name], and that by his/her/their signature(s) on the instrument, the individual(s), or the entity upon behalf of which the individual(s) acted, executed the instrument.

_____________________________________________
Notary Public

[NOTARIAL SEAL]

Section 7.3 Out-of-State Acknowledgment

STATE OF _________________
COUNTY OF _________________ ss.:

On the _____ day of _________________ in the year 20_____, before me, the undersigned, a Notary Public in and for said State, personally appeared:

_____________________________________________

personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument.

_____________________________________________
Notary Public

[NOTARIAL SEAL]

SCHEDULE A - LEGAL DESCRIPTION

Legal Description of Property:

ALL that certain plot, piece or parcel of land, with the buildings and improvements thereon erected, situate, lying and being in:

_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________
_____________________________________________

NEW YORK RECORDING REQUIREMENTS AND INFORMATION

Recording Requirements

Recording Fees

NOTICE: Outside the NYC City Register, CPLR 8021(a)(4) sets the county-clerk recording charge at $5 plus $3 per page; a county may increase those amounts by county law to $20 plus $5 per page. Additional statutory and local charges may apply. The NYC City Register uses its own ACRIS fee schedule. Confirm the total with the recording office before submission.

New York State Transfer Tax (Tax Law Article 31, § 1402)

Mansion Tax (Tax Law § 1402-a) and NYC Supplemental Tax (Tax Law § 1402-b)

New York City Transfer Tax (NYC Administrative Code § 11-2102)

Mortgage Recording Tax (if applicable)

Mortgage recording tax may apply to a mortgage recorded with this deed. Its combined state and local rate depends on the location, mortgage amount, and applicable transaction details. For New York City property, calculate the current amount through ACRIS; for other counties, confirm with the recording office and state tax guidance.

Required Accompanying Documents

1. Form RP-5217 - Real Property Transfer Report; use the ACRIS-generated NYC version for City Register filings.
2. State Transfer Tax Return - Form TP-584 outside NYC or Form TP-584-NYC within NYC.
3. NYC-RPT - New York City Real Property Transfer Tax return for a NYC transfer; prepare the City Register filing through ACRIS and confirm Staten Island filing with the Richmond County Clerk.
4. Payment - Applicable transfer taxes and recording fees.
5. Nonresident seller's estimated income tax - For a covered fee-simple sale by a nonresident individual, estate, or trust, complete current Form IT-2663 and pay any estimated tax due when presenting the deed for recording. A New York resident seller or a seller claiming a Tax Law § 663(c) exemption instead completes the applicable certification in Form TP-584 or TP-584-NYC, Schedule D. See Tax Law § 663(d) and the current IT-2663 instructions.

For a New York City conveyance of a one- or two-family dwelling, include the smoke detector compliance affidavit signed by both grantor and grantee with the NYC real property transfer tax return; the City will not accept the return without it. NYC Administrative Code § 11-2105(g). See https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCadmin/0-0-0-223048.

Important Legal Notes

1. Deed Notice: Signed into law January 11, 2020 and effective March 11, 2020, RPL § 291 requires County Clerks to notify owners of record of residential property when a document is recorded affecting their property; a $10.00 notification fee (amount may vary by county) applies to residential deed recordings on or after that date.

2. Who Pays: Typically, the seller pays the NYS transfer tax and NYC transfer tax (if applicable).

3. Lien Law Section 13: Covenant regarding trust fund for construction improvements must be included.

4. Title Insurance: Grantees should consider obtaining title insurance.

5. Legal Counsel: Consultation with a licensed New York attorney is strongly recommended.

THIS INSTRUMENT WAS PREPARED BY:

_____________________________________________
Name

_____________________________________________
Address

_____________________________________________
Phone

This template is provided for informational purposes only and does not constitute legal advice. Consult with a licensed New York attorney before using this form.