Looking for a New York State Tax Forms And Templates? Download it for free!

TP-584.1 (11/09) Page 3

Instructions

an action to foreclose a mortgage or lien, enter the unpaid balance of the debt

Purpose of Form TP-584.1

secured by the mortgage or lien. The unpaid balance of the debt includes the

This form must be completed and filed with Form TP-584 for all conveyances

principal, interest and other accruals secured by the mortgage or lien.

that are pursuant to or in lieu of foreclosure or any other action governed by

Line 7 — Enter the amount of any continuing liens. Do not include the amount of

the Real Property Actions and Proceedings Law and for conveyances pursuant

any liens or encumbrances included on line 6.

to a secured party’s enforcement of a lien or other security interest, except

for such conveyances where part of the debt is recourse and part of the debt

Line 8 — Add lines 6 and 7. If debt is nonrecourse, skip line 9 and enter the

is nonrecourse (see Schedule E), for conveyances that consist in whole or in

line 8 amount on line 10.

part of a mere change of identity or form of ownership or organization (see

Line 9 — Where the debt is recourse, and the grantee is the mortgagee or

Schedule F), and for conveyances for which a credit will be claimed for tax

lienor, its agent, nominee or an entity wholly owned by the mortgagee or lienor,

previously paid (see Schedule G).

enter the fair market value of the real property.

Specific Instructions

Line 10 — If debt is recourse, enter the amount from line 8 or line 9, whichever

is lower. If debt is nonrecourse, enter the amount from line 8.

Schedule E

Line 11 — Enter any other amount paid by the grantee to the grantor for the real

For purposes of Schedule E, continuing liens are liens or encumbrances that

property.

after the conveyance, remain either on the real property, the shares of stock in

Line 12 — Add lines 10 and 11. This the amount of consideration to be entered

the cooperative housing corporation and/or proprietary lease(s) or the ownership

on Form TP-584, Schedule B, Part I, line 1.

interest in the entity, depending on whether the conveyance is the type

described in Part I, II, III or IV of Schedule E.

III

Part

Pursuant to section 575.11(a)(2)(ii) of the real estate transfer tax regulations,

Line 13 — Where the conveyance is to a secured party, or its agent, nominee or

a debt is recourse debt to the extent that, as of the date of conveyance, the

an entity owned by the secured party, who is enforcing a lien, security interest or

grantor or a person related to the grantor, including any guarantor, bears the

other rights on or in shares of stock in a cooperative housing corporation and/or

economic risk of loss for the debt beyond any loss attributable to the value of

associated proprietary lease(s), enter the unpaid balance of the debt secured by

the property securing the debt.

the pledge of the shares of stock in the cooperative housing corporation and/or

associated proprietary lease(s). The unpaid balance of the debt includes the

A grantee is related to the mortgagee or lienor to the extent that the

principal, interest and other accruals secured by the pledge of the shares and/or

mere change of identity or form of ownership exemption, as provided in

associated proprietary lease(s).

section 1405(b)(6) of the Tax Law, would apply to a conveyance by the

mortgagee or lienor to the grantee.

Line 14 — Enter the amount of any continuing liens, security interests or

other obligations remaining on the shares of stock in the cooperative housing

Where the grantee is the mortgagee or lienor, as in the type of conveyances

corporation and/or associated proprietary lease(s) after the conveyance. Do not

described in Parts I and II or the secured party, as in the type of conveyances

include the amount of any liens, security interests or other obligations included

described in Parts III and IV, or its agent, nominee or an entity wholly owned

on line 13.

by such mortgagee, lienor or secured party, Schedule E may be used only if the

debt, including continuing liens, is either all recourse or all nonrecourse. If the

Line 15 — Add lines 13 and 14. If debt is nonrecourse, skip line 16 and enter

debt is not either all recourse or all nonrecourse, do not use Schedule E. Attach

the line 15 amount on line 17.

a separate schedule setting forth the method of computation.

Line 16 — Where the debt is recourse and the grantee is the secured party,

Part

or its agent, nominee or an entity wholly owned by the secured party, who

is enforcing a lien, security interest or other rights on or in shares of stock

Line 1 — If real property is being conveyed pursuant to a mortgage foreclosure

in a cooperative housing corporation and/or associated proprietary lease(s),

or any other action governed by the Real Property Actions and Proceedings Law

enter the fair market value of the shares of stock in the cooperative housing

and the grantee is the mortgagee or lienor, its agent, nominee or an entity wholly

corporation and/or associated proprietary lease(s).

owned by the mortgagee or lienor, enter the amount of judgment of foreclosure

or the bid price, whichever is higher. The amount of judgment of foreclosure

Line 17 — If debt is recourse, enter the amount from line 15 or line 16,

includes any interest accrued through the date of transfer.

whichever is lower. If debt is nonrecourse, enter the amount from line 15.

If the grantee is a person unrelated to the mortgagee or lienor, regardless

Line 18 — If the conveyance is the original conveyance of shares of stock in a

whether the debt is recourse or nonrecourse, enter the bid price.

cooperative housing corporation by the cooperative corporation or cooperative

plan sponsor, or the subsequent conveyance of stock in a cooperative housing

If the grantee is an entity partially owned by the mortgagee or lienor and partially

corporation for a unit other than an individual residential unit, enter the pro

owned by a person unrelated to the mortgagee or lienor, enter the sum of

rata portion of the total amount of any liens or encumbrances that remain on the

(1) the amount of judgment of foreclosure or the bid price, whichever is higher,

real property of the cooperative housing corporation after the conveyance. The

multiplied by the percentage that represents the mortgagee’s or lienor’s beneficial

pro rata portion is determined by multiplying the total unpaid principal of the

interest in the grantee and (2) the bid price multiplied by the percentage that

mortgage by a fraction, the numerator of which is the number of shares of stock

represents the unrelated person’s beneficial interest in the grantee.

in the cooperative housing corporation being conveyed in connection with the

For this computation, the grantee is deemed to be the party who ultimately

transfer of the proprietary lease(s) and the denominator is the total number of

acquires the real property as a result of a mortgage foreclosure sale.

shares of stock in the cooperative housing corporation.

Example: X, a mortgagee, has the highest bid at a foreclosure sale. X assigns

Line 19 — Enter any other amount paid by the grantee to the grantor for the

the bid to an unrelated third party, Z, who ultimately acquires the property. Z is

conveyance.

the grantee. The consideration for the conveyance of the real property is the bid

Line 20 — Add lines 17, 18 and 19. This is the amount of consideration to be

price paid by Z to the referee.

entered on Form TP-584, Schedule B, Part I, line 1.

Line 2 — Enter the amount of any continuing liens. Do not include the amount of

Part

any liens or encumbrances included on line 1.

Line 21 — If the conveyance is to a secured party, or its agent, nominee or an

Line 3 — Add lines 1 and 2. If debt is nonrecourse or if the grantee is a person

entity owned by the secured party, who is enforcing a lien, security interest or

unrelated to the mortgagee or lienor, skip line 4 and enter the line 3 amount on

other rights on or in shares of stock, partnership interests or other instruments

line 5.

(i.e., the transfer or acquisition of a controlling interest in an entity with an

Line 4 — Where the debt is recourse debt and the grantee is the mortgagee or

interest in real property), enter the unpaid balance of the debt secured by the

lienor, its agent, nominee or an entity wholly owned by the mortgagee or lienor,

pledge of the ownership interest in the entity. The unpaid balance of the debt

enter the fair market value of the real property.

includes the principal, interest and other accruals secured by the pledge of the

Where the grantee is an entity partially owned by the mortgagee or lienor

ownership interest.

and partially owned by a person unrelated to the mortgagee or lienor, if the

Line 22 — Enter the amount of any other liens, security interests or other

percentage that represents the mortgagee’s or lienor’s beneficial interest in

obligations remaining on the ownership interest in the entity after the

the grantee multiplied by the sum of the higher of the judgment of foreclosure

conveyance. Do not include the amount of any liens, security interests or other

or bid price and any continuing liens, exceeds the fair market value of the real

obligations included on line 21.

property multiplied by such mortgagee’s or lienor’s percentage, enter the sum

Line 23 — Enter the amount of any liens or encumbrances remaining on the real

of (1) the fair market value of the real property multiplied by the percentage

property of the entity multiplied by the percentage in the entity being transferred

that represents the mortgagee’s or lienor’s beneficial interest in the grantee,

or acquired.

and (2) the bid price plus continuing liens multiplied by the percentage that

represents the unrelated person’s ownership interest in the grantee.

Line 24 — Enter the amount of any other debt or obligation of the entity

multiplied by the percentage in the entity being transferred or acquired. Do not

Line 5 — If debt is recourse, enter line 3 or line 4, whichever is lower. If debt is

include the amount of any other debt or obligation of the entity included on

nonrecourse or if the grantee is a person unrelated to the mortgagee or lienor,

line 23.

enter the amount from line 3. This is the amount of consideration to be entered

on Form TP-584, Schedule B, Part I, line 1.

Line 25 — Enter any other amount paid by the grantee to the grantor for the

conveyance.

Attach a copy of the referee’s report of sale, if available.

Line 27 — Enter the apportionment of line 26 to the interest in real property

Part

owned by the entity. The apportionment is determined by multiplying line 26 by

Line 6 — If real property is being conveyed to a mortgagee or lienor, or its

a fraction, the numerator of which is the fair market value of the real property

agent, nominee or an entity wholly owned by the mortgagee or lienor, in lieu of

Form Tp-584.1 - Real Estate Transfer Tax Return - Supplemental Schedules - New York State Department Of Taxation Page 3

Related Articles

Related forms

Related Categories