NYC Real Estate Closing Costs
When buying or selling, New York City real estate closing costs can be confusing. Our list of estimates and calculators will help you navigate the associated costs. The lender must disclose a good faith estimate of all settlement costs when obtaining mortgage financing. You will need a cashier’s check or bank wire to pay for your closing costs, which your attorney will request for your real estate closing. New York State Law requires a written engagement letter if the legal fee exceeds $3,000.
Since these costs are paid monthly or annually, payment may be required for some services the seller uses before moving out. Proration allows the buyer and the seller to balance these accounts so that each only pays for their services.
DISCLAIMER
Confirm all closing costs with your real estate attorney or mortgage representative for a specific transaction.
Table of Contents
Closing Costs for Buyers
Condo Closing Costs
| Own Attorney: | $2,000 + 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: | $2,000 + 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 |
Closing Costs for Sellers
Please find below a complete list of estimated costs when selling a condo, co-op, or townhouse. These figures are presented as general approximates only. The actual expenses will vary for every transaction. Before signing any contract, sellers should have all explained to them by their attorney.
Condominium / 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-operative
| 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) |
What is a Closing Cost Statement?
Pat yourself on the back. You’re at the finish line. So you have finally secured the closing date on your new apartment in NYC. However, some things remain, such as the final walk-through of the condo or co-op apartment and the closing statement. If this is your first home purchase, you may not be familiar with the last one. Read on to find out what it is and why it’s necessary.
A closing statement summarizes the sale transaction, which you’ll keep for your records. Your real estate attorney provides the closing statement in spreadsheet form and lists your closing costs for the purchase. It’s an essential document because you won’t have a specific figure for your closing costs until it’s written up. The problem with the closing cost figures provided by your buyer’s agent and the lender is that they’re only estimates. Until your attorney has prepared the closing statement, you won’t have an exact figure on your final costs.
On closing day, you will exchange checks, which can get confusing. The closing statement organizes everything to know where the money is going.
What does a closing costs statement contain?
At its most basic, a closing statement will include the following:
- The names of the seller and purchaser
- The specific closing date
- The address of the property
- The closing location
Since most closings are postponed a day or two, the closing statement must give a specific date. On the closing day, some people will be present to finalize everything. Expect to see the following people:
- Purchaser(s)
- Seller(s)
- The purchaser’s attorney
- The seller’s attorney
- The purchaser’s lenders attorney
- The two brokers (usually, but not always)
- The title company
Once all are together, it’s time to exchange checks.
Checks to bring on closing day
Before closing day, confirm with your attorney what checks you need to pay and to whom they must be made payable. These should be bank checks, also known as certified cashier checks. These are required because they won’t bounce as the funds are withdrawn at issue, unlike personal checks. You can only pick these up directly from your bank.
Also, bring your checkbook in case there are any unforeseen expenses. For example, it won’t be ideal if your closing is delayed because you are short $100.
What to do if you’re financing
If you are receiving funding for your purchase, there’s a good chance that you won’t need to bring any checks at all. The case is if other parties already account for all your proceeds. For instance, your layer will have the down payment in escrow, and your mortgage lender will be there for the remainder of the funds. Just confirm with your real estate attorney if this is the case. Most familiar with buyers who are receiving gift funds or other wire transfers. You can check this with them once you’ve received your closing statement.
How Long Does a Real Estate Closing Take?
Co-ops typically have a longer closing timeframe of 60-90 days longer than Condos, 45-60 days, mainly due to the co-op board approval and interview process. On top of the usual steps, including a home inspection, title search, and your lawyer’s due diligence, a buyer needs a condo or co-ops board approval. Your lawyer needs to conduct due diligence on the building, too. It would help if you prepared for the extra time these steps take.
Generally, a condo sale takes a shorter period to close. In addition, if you are paying cash, you do not have to wait for the bank to approve your mortgage, further shortening the time.
Hurdles to Closing
There are typical steps needed after the seller accepts your offer. These usually go smoothly, but any delay pushes back your closing date.
The real estate closing occurs once terms, sales price, contract signed, and check, are sent to your real estate attorney. The contract is then binding once the seller countersigns the contract. You control the first two items, but there are cases where the seller drags their feet. It should take one or two business days. If it takes longer, you and your buyer’s agent must question the seller and agent since they could use your offer as a bargaining chip to receive a higher bid.
Once the seller signs the offer, the listing is “in a contract” Several things happen, including an appraisal, which you need for your mortgage. Such can delay your closing if the home appraisal falls short. You must provide additional funds or renegotiate a lower price if this happens. Assuming this goes smoothly, the bank grants a commitment letter. You find your interest rate at this time, which you can lock in for a certain period, typically 60 or 90 days.
Due Diligence
We strongly advise a home inspection. Significant repairs could lead to a delay in your closing. If there are any negative surprises, you may want to renegotiate with the seller to pay a portion. During the due diligence, your lawyer will also order a title search, read the board minutes, and review the offering plan and the building’s financials.
If this is a co-op, you must contend with the board interview and approval.
Congratulations!
The turning point in any real estate closing will be when you finally receive the keys to your new property. Although you’ll likely change all the locks immediately, the symbolic significance will still offer closure to the process. The deed and mortgage will then be recorded in your attorneys’ public records; the purchase of your new home will now be closed and registered officially.
Final Thoughts
There are many documents to sign on your real estate closing day. Under the Consumer Financial Protection Bureau (CFPB) “Know before you owe” rule, you will receive the Closing Disclosure three business days before your closing date, allowing you to review the mortgage terms and costs. Additionally, your attorney should explain all the documents before presenting them to you.
Typically, the closing takes two to three hours, and you receive the keys to your new apartment at the end.