The Hamptons are one the most unique and competitive real estate markets in the world, and we understand that making a decision to buy a home here can be particularly overwhelming.
Whether you are a seasoned renovator or a first time homeowner, things don’t always go as planned and emotions can run high. Being well prepared and clear on your plan of action is critical for sanity’s sake.
PECONIC BAY REGION COMMUNITY PRESERVATION FUND
For East Hampton, Southampton and Shelter Island, the tax is computed as follows:
For Southold and Riverhead, the tax is computed as follows:
Amount: 1% of Sale Price on sales of $1,000,000 or more on improved property
AVERAGE TITLE INSURANCE PREMIUMS
Amount: $675 for 1st $100,000
Note: If purchase is financed by a bank additional insurance is required.
MORTGAGE RECORDING TAX
Amount: 1% of mortgage, paid by mortgagor
Recent poll shows survey charges for existing lots vary from $1,200 to $2,500
COMMUNITY PRESERVATION FUND
The 2% transfer tax is paid by the purchaser at closing on all title transfers with the following exemptions:
In the Fall of 1998, 350 years after East Hampton’s founding, voters in each of the five East End Towns (East Hampton, Southampton, Shelter Island, Riverhead and Southold) overwhelmingly approved a Community Preservation Fund that would use a 2% tax on the transfer of real estate to buy open space and the development rights to farmland in order to preserve the environment, physical beauty, and rural quality of life in eastern Long Island for all time.
Officially called the Peconic Bay Region Community Preservation Fund, the development of the Community Preservation Fund (CPF) is surely one of the most important events in East Hampton’s history—from the time Connecticut farmers and fishermen, originally from Maidstone in East Anglia in England, settled here in 1648 to the present.
Money raised in a town stays in the town in which the real estate transfer tax is levied and is used to purchase open space, farmland, and certain historic structures. Under certain circumstances, CPF money may be used for community recreational purposes. In its first decade, tens of millions of CPF dollars have been collected and utilized to spare thousands of acres from development. By protecting property values, this is a savings account for taxpayers.
The remarkable combination of East Hampton’s openness, its farmlands and forests, its bays, harbors, ponds and magnificent beaches, its beautiful vistas, close-to-nature-trails, the soul satisfying sounds of surf, and the smells of fresh sea air combine to make it captivating. The Community Preservation Fund is designed, and legislated, to protect these environmental treasures.
Nearly 40 percent of East Hampton’s 70 square miles are now in public ownership – most of it preserved as open space.
While no one enjoys paying taxes, the Community Preservation Fund should have the effect of increasing everyone’s property values over the long run. Without such an effort, we are in jeopardy of becoming over-developed and losing our uniqueness.
*Text from: ©2013 East Hampton Conservators
Our dynamic drive comes through in every transaction leaving no stone unturned and working tirelessly to negotiate the best possible deal for our clients.