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CLOSING COSTS

Attorney Fees
The amount a buyer pays a real estate attorney for preparation of documents and advice during a property purchase.

NYC Mansion Tax
An additional real estate transfer tax imposed on property purchases equal to or great than $1,000,000.
The amount of the tax is 1% of the purchase price if applicable.

Title Insurance
An insurance policy that covers the loss of ownership interest in a property due to legal defects and is typically required if the property is under mortgage.
In general, title insurance is not applicable when purchasing a co-op, as co-ops are a different form of ownership than a condo or home.

Bank Attorney
When purchasing an apartment or home in NYC with mortgage financing, it is customary for the buyer to pay the fees of the bank’s attorney.

Mortgage Recording Tax
The mortgage recording tax requires purchasers in NYC to pay 1.8% on mortgage amounts under $500,000 and 1.925% on mortgage amounts above $500,000.
This tax is based on the mortgage amount, not the purchase price, and applies to mortgages related to real property such as condos or homes.
It does not apply to co-ops as they are a different form of ownership.

NYC Transfer Tax
The New York City Real Property Transfer Tax is 1% of the price if the value is $500,000 or less, or 1.425% if the price is more.
This tax applies to buyers of new developments only.

NY State Transfer Tax
New York State imposes a real estate transfer tax on conveyances of real property or interests therein when the consideration exceeds $500.
This tax applies to buyers of new developments only.

Seller’s Attorney Fee
When buying in a new development in NYC, it is customary for the buyer to pay the fees of the seller’s attorney.

How much to budget for closing costs in NYC

    Buyers: 2 to 4 percent of the cost of the apartment
    Sellers: 8 to 10 percent

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