Late RPIE Forms Can Lead to Fines for Purchasers

Late RPIE Forms Can Lead to Fines for Purchasers

Commercial property owners in New York City are required to file an annual form called the RPIE, or Real Property Income and Expense Statement. This is true if you own an income-producing property that has an actual assessed value of more than $40,000.

If you don’t file this document, the NYC Department of Finance can assess large fines, potentially up to 3% of the final Actual Assessed Value, with higher penalties for continued non-compliance.

In a purchase, however, it is possible for the seller to be delinquent in filing the RPIE, but the penalty may not have been assessed yet. This can result in a fine being issued to the purchaser, post-closing.

For this reason, in any purchase of commercial property in which the RPIE is required, it is essential to check whether the seller is current with RPIE filings before closing.