By Eric Berman, REALTOR® | The Eric Berman Team at Compass
 

TL;DR:

Most of the paperwork is routine and your attorney handles it. Two things are worth doing yourself and doing early. Pull the property's Department of Buildings record — it's publicly searchable, it takes ten minutes, and an open permit or a certificate of occupancy that doesn't match the house is the most common expensive surprise in a Bayside sale. And find your improvement records, because capital improvements add to your cost basis and directly reduce taxable gain, which on a long-held home can be worth more than anything else in the folder.

Start With the DOB Record

This isn't on most paperwork checklists and it should be first on every one.

Bayside falls under the New York City Department of Buildings, and DOB records are publicly searchable. A seller can look up their own property's permit history and certificate of occupancy in about ten minutes, at no cost, before listing.

What you're looking for: open permits filed and never signed off, work with no permit on record, and a certificate of occupancy that doesn't match the house — a converted basement, an added bathroom, an enclosed porch counted as living space.

Why it matters more than the rest of the folder: after contracts are signed, the buyer's attorney orders municipal searches and whatever DOB has on file comes back in writing, weeks into the transaction with a mortgage commitment clock running. Resolving it happens on DOB's schedule.

Found before listing, it's a filing and a fee. Found in week seven, it's a delayed closing and leverage handed to the buyer. The full picture of how permit issues resolve covers what each type costs — the mechanics are the same with DOB in the role a Nassau town or village plays.

The Documents That Reduce Your Tax Bill

Second priority, and it's worth real money on a long-held home.

Improvement records — receipts, contracts, and permits for capital improvements made across your ownership. A kitchen, a roof, an addition, replacement windows, central air, a finished basement.

These add to your adjusted cost basis, and gain is calculated as the amount realized minus that basis. Every documented improvement directly reduces taxable gain.

The primary-residence exclusion covers $250,000 for a single filer and $500,000 filing jointly, both fixed since 1997. A Bayside home held for decades may well exceed it, and the difference between finding forty years of receipts and not finding them can run to six figures. The full treatment of how gain is calculated covers the mechanics.

Do this before decluttering. Sellers routinely discard old paperwork while preparing to list, which is exactly the wrong order.

What the Attorney Will Ask For

The standard file, most of which your attorney assembles or requests.

The deed, establishing ownership and how title is held — which matters if the property is held jointly, in a trust, or by an estate.

The title insurance policy from your purchase, if you have it. Useful reference and sometimes helpful in resolving anything the new search turns up.

The mortgage payoff statement, and payoff information for any home equity line. Note that an unused equity line still needs to be closed and discharged.

A survey, if one exists. Not always required, but a buyer's attorney or title company may want one, and providing an existing survey can avoid the cost of a new one.

Recent property tax bills.

Any existing liens or judgments you're aware of, disclosed early rather than discovered.

The Disclosures

Two are required and one is frequently misunderstood.

The Property Condition Disclosure Statement. Mandatory since the March 20, 2024 amendment — 56 questions, delivered before a binding contract. The prior option of giving the buyer a five hundred dollar credit instead of completing the form was eliminated, and guidance still describing it as available is pre-amendment material.

The form asks what you know and imposes no duty to investigate. "Unknown" is a permitted answer where you genuinely don't know. The full treatment of what the form asks covers how to complete it, including the estate exemption.

Lead-based paint disclosure, a separate federal requirement for homes built before 1978 — its own form, an EPA pamphlet, and a ten-day testing window for the buyer. Much of Bayside's housing stock predates 1978, so this applies broadly, and completing the PCDS does not satisfy it.

A smoke and carbon monoxide detector affidavit is signed at closing, confirming compliance with New York requirements.

The Closing Documents

Handled by the attorney, but worth knowing what they are.

Two transfer tax filings, not one. Form TP-584 for the New York State Transfer Tax at four dollars per thousand, and Form NYC-RPT for the New York City Real Property Transfer Tax — roughly 1.425% on residential sales at or above $500,000, paid by the seller. The full breakdown of Bayside closing costs covers what each runs.

The settlement statement, itemizing every credit and charge and showing the net figure. Note this is not the old HUD-1 form, which was largely replaced for residential transactions in 2015.

The deed transferring title, plus any affidavits the state or city requires.

A power of attorney, if you won't attend closing. This has to be drafted for a real estate conveyance and accepted by the buyer's title company — both straightforward weeks ahead and difficult days ahead.

Sellers who have left New York should also expect Form IT-2663, the nonresident estimated payment at 8.82 percent of net gain, filed with the deed.

Bring to closing: government photo ID, and keys and remotes for every lock.

One Correction Worth Making

Title insurance is frequently described as protecting both parties. It doesn't.

The buyer's owner's policy protects the buyer. The lender's policy protects the lender. A seller receives no protection from either — what a seller provides is clear, insurable title, and the policies exist to protect the people acquiring an interest.

Related: New York doesn't require a seller to retain an attorney by statute. What it does is reserve contract drafting and negotiation to licensed attorneys, which makes involvement universal in practice. An engagement letter is standard professional practice rather than a transaction requirement. The case for engaging counsel before listing covers what that role actually involves.

A Worked Example

Consider a composite case — a Bayside seller with a 1951 colonial, owned since 1994, preparing to list.

She searched the DOB record first and found a permit for a rear extension filed in 2008 and never signed off. Resolving it took about six weeks — inspection, a minor correction, sign-off.

Then she spent a weekend in the basement before decluttering, and found receipts for a 1999 kitchen, a 2006 roof, replacement windows, and the extension itself. Roughly $180,000 in documented capital improvements, which her CPA applied to basis.

The rest was routine. Her attorney handled the deed, payoff, transfer tax filings, and the settlement statement. She completed the disclosure form carefully, using "Unknown" on questions about work predating her ownership.

The weekend in the basement and the ten minutes on the DOB site were the two things that mattered. Everything else was paperwork.

Where to Start

Search the property's DOB record — it's public, free, and it's the item most likely to cost you weeks. Find your improvement receipts before you declutter, not after. Locate the deed, any survey, and your title policy from purchase. Get the mortgage payoff figure and confirm any equity line is closed. Engage an attorney one to two weeks before listing. Complete the disclosure form carefully with counsel, using "Unknown" where it honestly applies. And if you won't attend closing, arrange the power of attorney weeks ahead.

Sellers wanting a read on where the home sits can start with a quiet look at current value.

The Honest Bottom Line

Most of this folder gets assembled by your attorney and you'll barely notice it.

Two items are yours and neither can be done late. The DOB record takes ten minutes and prevents the most common expensive surprise in a Bayside sale. The improvement receipts take a weekend and can be worth six figures against your tax bill on a home held for decades.

Everything else is routine. Those two are the reason to start early.

For anyone working through what applies to a specific property, with no pressure attached, that conversation is available whenever the timing suits.

This is general information, not legal or tax advice. Document requirements, disclosure obligations, and tax treatment vary by transaction. Consult a licensed New York real estate attorney and a CPA about your circumstances.

FAQs

Can I skip the disclosure form by giving the buyer $500?

No. That option was eliminated when the Property Condition Disclosure Statement was amended effective March 20, 2024. The 56-question form is now mandatory for residential sales and must be delivered before a binding contract is signed. Guidance still describing the five hundred dollar credit as available is pre-amendment material, and a substantial amount of it remains online. The form asks what you actually know and imposes no duty to investigate — "Unknown" is a permitted answer where you genuinely don't know.

What's the most important document for a Bayside seller?

The Department of Buildings record, and it's the one most checklists omit. Bayside falls under NYC DOB and the records are publicly searchable, so a seller can check their own property's permit history and certificate of occupancy in about ten minutes at no cost. An open permit, unpermitted work, or a certificate that doesn't match the house surfaces in the buyer's municipal searches after contracts are signed — weeks in, with a mortgage clock running. Found beforehand, it's a filing and a fee.

Why do improvement receipts matter when selling?

Because capital improvements add to your cost basis, and gain is calculated as the amount realized minus that basis. Every documented improvement directly reduces taxable gain. The primary-residence exclusion covers $250,000 for a single filer and $500,000 filing jointly, both fixed since 1997, and a Bayside home held for decades may well exceed it. Finding forty years of receipts versus not finding them can be worth six figures. Do this before decluttering, since sellers routinely discard the paperwork while preparing to list.

Does title insurance protect the seller?

No, and it's commonly described incorrectly. The buyer's owner's policy protects the buyer; the lender's policy protects the lender. A seller receives no protection from either — what a seller provides is clear, insurable title, and the policies exist to protect the parties acquiring an interest. Relatedly, New York doesn't require a seller to retain an attorney by statute. It reserves contract drafting and negotiation to licensed attorneys, which makes involvement universal in practice.

What gets filed at a Bayside closing?

Two transfer tax filings rather than one. Form TP-584 for the New York State Transfer Tax at four dollars per thousand, and Form NYC-RPT for the New York City Real Property Transfer Tax at roughly 1.425 percent on residential sales at or above $500,000, paid by the seller. Plus the deed, a settlement statement itemizing every credit and charge, a smoke and carbon monoxide detector affidavit, and — for sellers who have left New York — Form IT-2663 for the nonresident estimated payment.

By Eric Berman, REALTOR® | The Eric Berman Team at Compass

Eric Berman | Long Island & Queens Associate Broker | Compass
1468 Northern Blvd, Manhasset, NY 11030
(917) 225-8596 | eric@ericbermanre.com | theericbermanteam.com