Home Buyers and Sellers, Save Money With a Purchase CEMA

Home buyers and sellers in New York City can potentially save tens of thousands of dollars by using a Purchase CEMA. Essentially, with a Purchase CEMA the buyer of a home is "taking over" the seller's remaining mortgage and consolidating it with theirs. This reduces both the buyer's mortgage recording tax and the seller's transfer taxes.

So why don't more people do it? First, it only works for condos, townhouses, and single family homes because they're real property. Co-ops are out since you're technically buying shares of a corporation and a lease. Also, both loans usually need to be with the same lender.

Sometimes both sellers split the savings evenly. Savvy brokers know that Purchase CEMA can also be used as a negotiating tool, since effectively the buyer will pay a lower price and the seller will receive a higher one.

For more information on how it works, check with your mortgage lender and/or real estate attorney. Or let us connect with you. We work with some terrific ones!