New York & Long Island Real Estate Glossary
Your comprehensive guide to real estate terminology
Financial & Tax Terms
Mansion Tax
A NY State progressive tax starting at 1% of the purchase price for residential properties sold for $1 million or more. In NYC, rates increase for properties over $2 million, capping at 3.9% for sales over $25 million.
Peconic Bay Tax (CPF)
A 2.5% transfer tax applied to real estate purchases in the five East End towns (Southampton, East Hampton, Riverhead, Southold, Shelter Island) to fund land preservation and water quality.
Flip Tax
A transfer fee (not a government tax) charged by a Co-op building to the seller upon closing. It is usually a percentage of the sale price (e.g., 2%) or a set fee per share, used to boost the building's reserve fund.
STAR Exemption (School Tax Relief)
A NY State property tax break for primary residences. The "Basic STAR" exempts the first $30,000 of home value from school taxes, while "Enhanced STAR" offers deeper savings for seniors (65+) with limited income.
Grievance Day
The specific annual deadline (varies by county; often May in Nassau/Suffolk) when homeowners must file a formal complaint to challenge their property tax assessment.
Supplemental Tax Bill
An additional tax bill issued when a property is reassessed after a substantial improvement (like a new pool or extension) or a change in ownership that triggers a new valuation.
Assessment Ratio
The percentage of a property's market value used to calculate taxes. In Nassau County, this ratio is fractional (e.g., 0.1% or 0.25%), which often confuses homeowners about their home's "taxable" value vs. "market" value.
Jumbo Loan
A mortgage exceeding the conforming loan limits set by the FHFA (approx. $1.2M+ in high-cost NY counties for 2026). These loans typically require higher credit scores and larger down payments (20-30%).
Post-Closing Possession Agreement
A legal agreement allowing the seller to remain in the home for a specific period after closing (essentially renting it back), often used when the seller is buying a new home concurrently.
Escrow Holdback
Money held by an attorney from the seller's proceeds at closing to ensure a specific condition is met (e.g., finalizing a repair or obtaining a missing CO).
Legal & Transactional
Certificate of Occupancy (CO)
A document from the local municipality certifying that a building's use is legal and meets all zoning/safety codes. A missing CO for a deck or finished basement can stall a sale.
Binder
A preliminary agreement in NY accompanied by a "good faith deposit" (often 1%) to secure a deal before formal contracts are signed. It is generally not legally binding until the contract is fully executed.
Contract Vendee
A buyer who has signed a contract but has not yet closed on the property. In some cases, this status grants them an "equitable interest" in the land.
Rider
An addendum to a standard real estate contract that addresses specific clauses, such as lead paint disclosures, post-closing possession, or mortgage contingencies.
Title Insurance
A policy protecting the buyer and lender against past defects in the property's title (e.g., unknown heirs, unpaid liens, or forgery). In NY, this is a one-time fee paid at closing.
Lis Pendens
A public notice filed in county records indicating a pending lawsuit affecting the property title, most commonly the first step in a foreclosure action.
Board Package
The comprehensive application (financials, tax returns, reference letters) a buyer must submit to a Co-op (and some Condo) boards for approval to purchase.
Right of First Refusal
A clause common in Condos allowing the Board to match a buyer's offer and purchase the unit themselves. While rarely exercised, the Board must issue a "waiver" of this right for the sale to proceed.
Sponsor Unit
An apartment in a Co-op or Condo owned by the original developer (Sponsor) rather than an individual homeowner. These sales usually bypass Board approval ("No Board Approval").
Proprietary Lease
The document that grants a Co-op shareholder the right to live in their specific apartment unit. In a Co-op, you own shares and a lease, not a deed.
Zoning & Property Types
Village vs. Hamlet
A Village (e.g., Garden City) is an incorporated municipality with its own mayor, taxes, and often police. A Hamlet (e.g., Merrick) is an unincorporated area governed solely by the Town.
Flag Lot
A property located behind another, accessible only by a long, narrow driveway ("the pole"). These offer privacy but can have complex easement or utility access issues.
Easement
A legal right for a non-owner to use a portion of the property, such as a utility company needing access to power lines or a neighbor sharing a driveway.
Setback
The mandatory distance a structure must be from the property line. Variances are required if a homeowner wants to build closer to the line than zoning allows.
Non-Conforming Use
A property use that was legal when built but no longer fits current zoning laws (e.g., a grandfathered two-family home in a single-family zone).
Riparian Rights
The rights of a waterfront property owner to access and use the water (e.g., building a dock), which can be complex in NY due to state-owned tidal wetlands.
FEMA Flood Zones (X, AE, VE)
Zone X is low risk (no insurance required). Zone AE is high risk (1% annual flood chance, insurance mandatory with mortgage). Zone VE is coastal high hazard (wave action, most expensive insurance).
Accessory Dwelling Unit (ADU)
A secondary housing unit on a single-family lot (e.g., "Mother-Daughter" apartment). Legality varies strictly by Town code in Nassau/Suffolk.
Cul-de-Sac
A dead-end street with a rounded turnaround, highly prized in suburban Long Island for low traffic and safety.
Brownstone
A rowhouse clad in brown sandstone, iconic in NYC (Brooklyn/Harlem/Queens) but technically distinct from "Townhouses" which can be brick or limestone.
Construction & Luxury Features
Gunite Pool
A concrete swimming pool sprayed into place, considered the "luxury standard" over vinyl liners due to durability and design flexibility.
Coffered Ceiling
A grid of sunken panels in a ceiling, often used in high-end classic architecture to add depth and elegance.
Wainscoting
Wooden paneling on the lower half of a wall, a classic design element in traditional Long Island luxury homes.
Radiant Heat
A heating system installed underneath flooring (tile/wood) that warms the room from the ground up, highly desirable in luxury bathrooms.
Porte-cochère
A roofed structure extending from the entrance of a building over a driveway, allowing vehicles to pass through and passengers to exit protected from weather.
Smart Home Integration (Lutron/Crestron)
High-end automation systems controlling lighting, shades, climate, and security, often expected in "Ultra-Luxury" listings.
Hardscaping
The non-living elements of landscaping, such as stone patios, retaining walls, fire pits, and outdoor kitchens.
Spec House
A home built by a developer ("on speculation") without a specific buyer lined up, typically finished with mass-market but high-end trends.
Finished Basement (Legal vs. Illegal)
To be "Legal," a basement must have a CO, proper ceiling height (usually 7ft+), and "Egress" windows for fire escape.
Slate Roof
A premium roofing material made of natural stone, common in historic "Gold Coast" estates, known for lasting 100+ years but requiring specialized maintenance.
Market Dynamics
Days on Market (DOM)
The number of days a listing is active before going under contract. High DOM signals a stale listing or overpricing; low DOM signals a "Hot Market."
Absorption Rate
The rate at which available homes are sold in a specific market during a specific time. (e.g., If 10 homes sell per month and there are 30 homes on the market, the supply is 3 months).
Pocket Listing
A property that is for sale but not publicly listed on the MLS (Multiple Listing Service), often shared only within a brokerage or private network ("Office Exclusive").
Coming Soon
A status on the MLS allowing agents to market a property for a short period (e.g., 14 days) to generate buzz before active showings begin.
Bidding War
A situation where multiple buyers submit competing offers, often driving the final sale price above the asking price.
Highest and Best
A deadline set by the seller's agent in a bidding war, asking all interested buyers to submit their final, strongest offer by a specific time.
Escalation Clause
A clause in an offer stating the buyer will pay $X amount (e.g., $5,000) above the highest competing offer, up to a maximum cap.
Dual Agency
A situation where the real estate agent (or brokerage) represents both the buyer and the seller in the same transaction. In NY, this requires written "Informed Consent" from both parties.
Co-Broke
The commission split between the listing brokerage and the buyer's brokerage.
Comparable Market Analysis (CMA)
The report an agent creates comparing a subject property to similar, recently sold homes ("Comps") to determine a fair list price.
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