-New York City Condo Closing Costs-
The closing cost guide below is designed to give you the general costs associated with the purchase or sale of a condominium apartment in NYC.
BUYERS 2% to 4% of the purchase price: For buyers, a good rule-of-thumb is to set aside roughly 2% to 3% of the purchase price or 3% to 4% if the apartment is over $1 million to cover the “mansion tax”.
NOTE: If you buy a condominium apartment in a new development, you will incur higher closing costs. This is because the buyer pays some costs that are normally paid by the seller.
These additional costs include:
<>Sponsor attorney fees ($2,500 – $3,500)
<>New York State Transfer Tax (.4% of purchase price)
<>New York City Transfer Taxes (1.425% if the sale price is over $500,000 or 1% for deals under $500,000).
<>A one-time fee equal to 2 months of common charges paid for the Working Capital Fund Contribution
SELLERS 8% to 10% of the purchase price: Sellers can expect to pay more than buyers because they have to cover the NYC Transfer Tax and the broker’s commission, which is traditionally 6% (split equally between the listing and buyer’s brokers).
NYC Transfer Tax is 1.425% if the sale price is over $500,000 or 1% for deals under $500,000.
The numbers provided are estimates. Potential buyers and sellers should consult their real estate attorney or financial advisor for specifics. DwellingsNYC does not represent that these are the entirety of potential costs, but are only to be used as a guide.
For the Purchaser
Buyer’s Attorney: Consult your attorney (Approximately $2,500 and up)
Bank Fees: $350 – $750 (varies according to bank and loan product—obtain a loan
estimate from your lender)
Purchase Application Fees: $500 – $1,500 (varies from building-to-building)
Appraisal Fee: $500 – $1,500 (depending on sales price)
Credit Report Fee: $25 – $250 (varies from building-to-building)
Bank Attorney: $800 – $1,250
Title Insurance: Approximately $4 per $1,000 of purchase price
Mortgage Title Insurance: Approximately $1 per $1,000 of loan amount
Municipal Search Fee: $500
Deed Recording Fee: $250
Mortgage Recording Fee: $200
Unit Owner’s Power of Attorney Recording Fee: $125
Title Closer Attendance Fee: $300
Mansion Tax: 1% of entire purchase where price is $1,000,000 or more
NYC Mortgage Recording Tax:
a. Mortgage less than $500,000 = 1.80%
b. Mortgage $500,000 + on 1-3 family residential dwellings = 1.925%
c. Mortgage on all other property over $500,000 = 2.80%
Common Charge Adjustment: Pro-rated for the month of closing
Real Estate Tax Adjustment: Purchaser reimburses Seller for any pre-paid real estate taxes
Miscellaneous Condominium Charges: Vary by building
For the Seller
Broker: Typically 6%
Own Attorney: Consult your attorney (Approximately $2,500 and up)
Application/Waiver Fee: $500 – $1,000
NYC Transfer Tax:
Residential:
Up to $500,000 = 1% & $500,000 + = 1.425%
Commercial/Bulk Sale Rates:
Up to $500,000 = 1.425% & $500,000 + = 2.625%
NOTE: If two or more unattached units are sold simultaneously to the same buyer, the commercial transfer tax rate applies
NY State Transfer Tax: $4 per $1,000 of price (.4% of sale price)
Satisfaction of Mortgage Recording Fee: $110 per mortgage
Title Closer Pick-up Fee for Mortgage Payoff: $250 per mortgage
Move-out Deposit (refundable): Varies by building (usually $500 – $1,500)
Move-out Fee (non-refundable): Varies by building (usually $500 – $1,000)
Miscellaneous Condominium Charges: Vary by building
New York State Estimated Capital Gains Tax: 8.97% of estimated gain paid at closing unless (i) Seller is a NYS resident at time of the sale or (ii) Property was Seller’s principal residence for 2 out of the last 5 years or (iii) Seller has set up a 1031 Tax-Deferred Exchange
Federal Withholding Tax (FIRPTA): 10% – 15% of purchase price is withheld if Seller is a non-exempt foreigner
-New York City Co-op Closing Costs-
The closing cost guide below is designed to give you the general costs associated with the purchase or sale of a cooperative apartment in NYC.
BUYERS 2% to 4% of the purchase price: For buyers, a good rule-of-thumb is to set aside roughly 2% to 3% of the purchase price or 3% to 4% if the apartment is over $1 million to cover the “mansion tax”.
SELLERS 8% to 10% of the purchase price: Sellers can expect to pay more than buyers because they have to cover the NYC Transfer Tax and the broker’s commission, which is traditionally 6% (split equally between the listing and buyer’s brokers).
NYC Transfer Tax is 1.425% if the sale price is over $500,000 or 1% for deals under $500,000.
Additionally, some co-ops have flip taxes of 3% or more that is usually paid by the seller.
The numbers provided are estimates. Potential buyers and sellers should consult their real estate attorney or financial advisor for specifics. DwellingsNYC does not represent that these are the entirety of potential costs, but are only to be used as a guide.
For the Purchaser
Buyer’s Attorney: Consult your attorney (Approximately $2,500 and up)
Bank Fees: $350 – $750 (varies according to bank and loan product—obtain a loan estimate from your lender)
Purchase Application Fees: $500 – $1,500 (varies from building-to-building)
Appraisal Fee: $500 – $1,500 (depending on sales price)
Credit Report Fee: $25 – $250 (varies from building-to-building)
Bank Attorney: $800 – $1,250
Judgment & Lien Search: $350
UCC-1 Filing Fee: $75 – $125
Mansion Tax: 1% of entire purchase price where price is $1,000,000 or more
Move-in Deposit (refundable): Varies by building (usually $500 – $1,500)
Move-in Fee (non-refundable): Varies by building (usually $350 – $1,000)
Financing/Recognition Agreement Fee: $250 – $500
Maintenance Adjustment: Pro-rated for the month of closing
Short Term Interest: Equal to interest for balance of month in which you close
Miscellaneous Co-op Charges: Vary by building
For the Seller
Broker: Typically 6%
Own Attorney: Consult your attorney (Approximately $2,500 and up)
Co-op Attorney Fee: $500 – $750
Payoff Bank Attorney’s Fee: $450 – $550
Flip Tax: Typically 1% to 3% of price (if applicable) but varies by building. The flip tax is traditionally paid by the seller.
Stock Transfer Tax: $0.05 per share
NYC Transfer Tax:
Residential:
Up to $500,000 = 1% & $500,000 + = 1.425%
Commercial/Bulk Sale Rates:
Up to $500,000 = 1.425% & $500,000 + = 2.625%
NOTE: If two or more unattached units are sold simultaneously to the same buyer, the commercial transfer tax rate applies
NY State Transfer Tax: $4 per $1,000 of price (.4% of sale price)
New York City Transfer Tax Filing Fee: $100
UCC-3 Filing Fee: $75 – $125
Move-out Deposit (refundable): Varies by building (usually $500 – $1,500)
Move-out Fee (non-refundable): Varies by building (usually $500 – $1,000)
Miscellaneous Co-op Charges: Vary by building
New York State Estimated Capital Gains Tax: 8.97% of estimated gain paid at closing unless (i) Seller is a NYS resident at time of the sale or (ii) Property was Seller’s principal residence for 2 out of the last 5 years or (iii) Seller has set up a 1031 Tax-Deferred Exchange
Federal Withholding Tax (FIRPTA): 10% – 15% of purchase price is withheld if Seller is a non-exempt foreigner