NYC Closing Costs for Buyers and Sellers
Please find below a complete list of estimated New York City Real Estate closing costs when purchasing or selling a Condo, Co-op, or Townhouse. When financing, your lender must prepare; a reasonable faith estimate; of all settlement costs before closing, but the title company or other entity calculates the exact amount you are required to bring to your real estate closing.
Be sure to get a cashier’s check for your share of the costs a few days before the settlement date.
*Since these costs are usually paid, on a monthly or annual basis, you may pay for some services used by the seller before they moved. Similarly, some expenses are paid, in advance of services, being used.
Proration allows the buyer and the seller to balance these accounts so that each only pays for the services they used.
Important
Inquire with bank/mortgage broker for additional fees. NY State Law requires a written letter of engagement if the legal fee exceeds $3,000. Non-New York State residents should procure exemption for state transfer tax forms. Projections below are only estimates. Please confirm all closing costs for specific transactions with your real estate attorney and mortgage representative.
Table of Contents
Upcoming Transfer Tax Increase
The recent 2020 budget passed by the state legislature, an increase of transfer tax applies to the sale of all real property in the state. In New York City, the transfer tax rate will rise from 0.40% to 0.65% for residential properties sold for at least $3,000,000. The increase in tax rates takes effect with; properties closing; on or after July 1st, 2019.
Costs for Buyers
Condo Closing Costs
| Own Attorney: | $1,500 + up |
| Managing Agent Application Fee: | $300 + |
| Credit Report Fee: | $75 - $100 per applicant |
| Lead-Based Paint Disclosure Fee: | $0 - $50 |
| Mansion Tax: | Purchase Price Mansion Tax Less than $999,999 - 0.00% $1,000,000 – $1,999,999 - 1.00% $2,000,000 – $2,999,999 - 1.25% $3,000,000 – $4,999,999 - 1.50% $5,000,000 – $9,999,999 - 2.25% $10,000,000 – $14,999,999 - 3.25% $15,000,000 – $19,999,999 - 3.50% $20,000,000 – $24,999,999 - 3.75% $25,000,000 or more - 3.90% |
| Move-in Deposit: | $500 - $1,000 (refundable if no damage) |
| Common charges, real estate taxes, and insurance: | prorated as of the closing |
| Condo Mortgage Associated Fees: | prorated as of the closing |
| Mortgage Tax: | (Paid by the buyer, condominium/townhouses only, when financing ) |
| Recording Tax Sales under $500,000: | 1.8% of the entire mortgage |
| Recording Tax Sales over $500,000: | 1.925% of the entire mortgage |
| Application, Credit Check, etc.: | $500 + up |
| Appraisal: | $250 + up |
| Bank Attorney: | $500 + up |
| UCC-1 Filing: | $50 + up |
| Recognition Agreement Fee: | $200 + up |
| Lien Search: | $350 |
| Fee Title Insurance: Approx: | $450 per $100,000 |
| Mortgage Title Insurance: | Approx. $200 per $100,000 |
| Recording Fees: | $200 - $300 |
| Origination Costs - Points: | 0-3% of the loan value |
| Departmental Searches: | $200 - $400 |
| Real Estate Tax Escrow: | 2-6 months |
| If Purchased Directly from Sponsor *New Developments | |
| NYC and NYS Property Transfer Tax: | Property Sale Price NY State Transfer tax NYC Transfer Tax Total Transfer Tax $499,999 and less - 0.40% 1.00% 1.40% $500,000 - $1,999,999 - 0.40% 1.425% 1.825% $2,000,000 - $2,999,999 - 0.40% 1.425% 1.825% $3,000,000 - $4,999,999 - 0.65% 1.425% 2.075% $5,000,000 - $9,999,999 - 0.65% 1.425% 2.075% $10,000,000 - $14,999,999 - 0.65% 1.425% 2.075% $15,000,000 - $19,999,999 - 0.65% 1.425% 2.075% $20,000,000 - $24,999,999 - 0.65% 1.425% 2.075% $25,000,000 or more - 0.65% 1.425% 2.075% |
| Sponsor's Attorney Fee: | $1,500 |
Co-op Closing Costs
| Own Attorney: | $1,500 + up |
| Bank Fees: Points: | 0% to 3% of loan value |
| Application, credit check, etc: | $500+ |
| Bank Attorney: | $700+ |
| Miscellaneous Bank Fees: | $500+ |
| Lien Search: | $300 |
| UCC-1 Filing: | $100 |
| Appraisal Fee: | $300+ |
| Application Fee (Credit Report/Appraisal): | $500+ ( Short-Term Interest; Equal to interest for the balance of month in which you close. ) |
| Move-in Deposit: | One-time fee of $500.00+ |
| Recognition Agreement Fee: | $200 |
| Maintenance Adjustment: | Pro-rated for the months of closing. |
| Mansion Tax: | 1% of entire purchase price where price is $1,000,000 or more. |
Townhouse Closing Costs
| Own Attorney: | $1,500 + |
| Engineer/Inspection Report: | $750 - $2000 |
| Termite Inspection: | $200 - $500 |
| Mansion Tax: | 1% of entire purchase price where price is $1,000,000 or more. |
| Townhouse Mortgage Associated | |
| Origination Costs - points: | 0 - 3% of loan value |
| UCC-1 Filing: | $50 + |
| Appraisal Fee: | $300 + |
| Application Fee (Credit Report/Appraisal): | $500 + |
| Mortgage Recording Tax: | (Paid by buyer, condominium/townhouses only, when financing ) |
| Recording Tax Sales under $500,000: | 1.75% of entire mortgage |
| Recording Tax Sales over $500,000: | 1.875% of entire mortgage |
| Title Insurance, Title Search & Recording Fees: | up to 0.5% of purchase |
| Building Searches: | $200 - $400 |
| Recording Charge: | $17 per document plus $5 per page |
| NYS Transfer Tax: | $4 per $1,000 of the purchase price |
Costs for Sellers
Please find below a complete list of estimated Closing Costs when selling a Condo, Co-op, or Townhouse. These figures are presented as a general guideline only. Actual closings costs will vary for every transaction. Before signing any contract, sellers should have all closing costs explained to them by their attorney.
Condo / Townhouse
| Broker(s): | Typically 5%-6% |
| Seller’s attorney (negotiated flat rate): | $2,500± |
| NY City Transfer Tax: | 1% of sales price for sales of $500,000; or less 1.425% for sales in excess of $500,000 |
| NY State Transfer Tax: | $2 per $500 (or 0.4% of sales price) |
| Miscellaneous title company fees (if seller has mortgage): | $450± |
| Move-out deposit or fees (condo): | $1,000 (varies) |
| Managing agent fees (condo): | $500± |
Co-op Costs
| Broker(s): | Typically 5% - 6% |
| Seller’s attorney (negotiated flat rate): | $2,500± |
| NY City Transfer Tax: | 1% of sales price for sales of $500,000; or less 1.425% for sales in excess of $500,000 |
| NY State Transfer Tax: | $2 per $500 (or 0.4% of sales price) |
| Flip tax (if any)*: | Often 2-3%, consult managing agent |
| Managing agent fee: | $600± |
| Stock Transfer Tax: | $0.05 per share |
| Move-out deposit or fees: | $1,000 (varies) |
| Payoff bank attorney (if seller has mortgage): | $500± |
| UCC-3 filing (if seller has mortgage): | Up to $100 per loan |
| *Flip taxes vary on amount and by whom they are payable (buyer or seller) |