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July 10, 2017   |   By: Max Dilendorf, Esq. and Rika Khurdayan, Esq.

NYC Closing Cost Guide: Condos, Coops & Townhouses

CONDOMINIUM CLOSING COSTS

CLOSING COSTS PAID BY THE SELLER

PROFESSIONAL FEES

Broker Commissions: 6% of purchase price

Seller’s Attorney’s Fee: Varies

TAXES & GOVERNMENT FEES
  • New York City Real Property Transfer Tax:
    Rates

    Purchase price of $25,000 or less:None

    Single residential condo for $500,000 or less: 1% of purchase price

    Single residential condo for more than $500,000: 1.425% of purchase price

    Other transfers for $500,000 or less:1.425% of purchase price

    Other transfers for more than $500,000: 2.625% of purchase price

    Filing Fee

    When no return required: $100

    Qualifying residential property:$125

    Other property: $165

  • New York State Real Estate Transfer Tax:
    Rates

    Purchase price of $500 or less: None

    Purchase price of more than $500:$2.00 per $500 or part thereof

  • Form RP-5217-NYC Filing Fee:

    1- to 3-family homes and residential condos: $125

    Other property: $250

  • Nonresident Real Property Est. Income Tax Withholding:8.82% of estimated gain
  • FIRPTA Withholding:
    Rates

    Purchase price of $300,000 or less:None

    Purchase price of $300,000 – $1 million: 10% of purchase price

    Purchase price of more than $1 million: 15% of purchase price

OTHER EXPENSES

Processing Fee: $450 or more

Pick Up/Payoff Fee: $250 or more per mortgage

Misc. Condo Fees (e.g., Move-Out Fees): Varies

CLOSING COSTS PAID BY THE BUYER

BANK FEES

Application & Processing Fees:$700 or more

Appraisal Fee: $300 – $1,500

Bank Attorney’s Fee: $650 – $1,000

Bank Fee: $350 – $750

Credit Report Fee: $25 – $100 per individual

Fee Title Insurance: Varies

Mortgage Title Insurance: Varies

Municipal Search: $300 – $500 or more

Origination/Points: 0% – 3% of loan amount

Tax Escrows: 2 – 6 months

CONDOMINIUM FEES

Common Charge Adjustment: Pro-rated for closing month

Real Estate Tax Adjustment: Pro-rated for tax period

PROFESSIONAL FEES

Buyer’s Attorney’s Fee: Varies

TAXES & GOVERNMENT FEES
  • Mansion Tax:
    Rates

    Purchase price of $1 million or less:None

    Purchase price of more than $1 million: 1% of purchase price

  • New York State Real Estate Transfer Tax:
    Rates

    Purchase price of $500 or less: None

    Purchase price of more than $500:$2.00 per $500 or part thereof

  • New York State & New York City Mortgage Recording Tax:
    Rates

    Loan amount less than $500,000:2.05% of loan amount

    Loan amount more than $500,000: 
    Single 1-3 family residence – 2.175% of loan amount
    Other property – 2.8% of loan amount

  • Recording Fees: $250 – $750
SPONSOR’S CLOSING EXPENSES IN NEW CONSTRUCTION:

When buying a condo in a new development, the buyer will typically have to pay the sponsor’s closing expenses, such as the sponsor’s attorney’s fees and transfer taxes.

COOPERATIVE CLOSING COSTS

CLOSING COSTS PAID BY THE SELLER

PROFESSIONAL FEES

Broker Commissions: 6% of purchase price

Seller’s Attorney’s Fee: Varies

CO-OP FEES

Co-op Attorney’s Fee: $450 or more

Flip Tax: 1-3% of purchase price

Move-Out Deposit or Fee: $500 or more

Misc. Other Co-op Fees: Varies

TAXES & GOVERNMENT FEES
  • New York City Real Property Transfer Tax:
    Rates

    Purchase price of $25,000 or less:None

    Single residential unit for $500,000 or less: 1% of purchase price

    Single residential unit for more than $500,000: 1.425% of purchase price

    Other transfers for $500,000 or less:1.425% of purchase price

    Other transfers for more than $500,000: 2.625% of purchase price

    Filing Fee

    When no return required: $100

    Qualifying residential property:$125

    Other property: $165

  • New York State Real Estate Transfer Tax:
    Rates

    Purchase price of $500 or less: None

    Purchase price of more than $500:$2.00 per $500 or part thereof

  • Form RP-5217-NYC Filing Fee:

    1- to 3-family homes and residential condos: $125

    Other property: $250

  • New York State Stock Transfer Tax: $0.05 per share
  • UCC-3 Filing Fee: $100
  • Nonresident Real Property Est. Income Tax Withholding:8.82% of estimated gain
  • FIRPTA Withholding:
    Rates

    Purchase price of $300,000 or less:None

    Purchase price of $300,000 – $1 million: 10% of purchase price

    Purchase price of more than $1 million: 15% of purchase price

OTHER EXPENSES

Pick Up/Payoff Fees: $250 or more per mortgage

CLOSING COSTS PAID BY THE BUYER

PROFESSIONAL FEES

Buyer’s Attorney’s Fee: Varies

BANK FEES

Application & Processing Fees:$700 or more

Appraisal Fee: $300 – $1,500

Bank Attorney’s Fee: $650 – $1,000

Bank Fee: $350 – $750

Credit Report Fee: $25 – $100 per individual

Lien Search: $250 – $500

CO-OP FEES

Maintenance Adjustment: Pro-rated for closing month

Move-In Deposit: $500 or more

Recognition Agreement Fee: $150 or more

Misc. Other Fees: Varies

TAXES & GOVERNMENT FEES
  • Mansion Tax:
    Rates

    Purchase price of $1 million or less:None

    Purchase price of more than $1 million: 1% of purchase price

  • UCC-1 Filing Fee: $100

TOWNHOUSE CLOSING COSTS

CLOSING COSTS PAID BY THE SELLER

PROFESSIONAL FEES

Broker Commissions: 6% of purchase price

Seller’s Attorney’s Fee: Varies

TAXES & GOVERNMENT FEES
  • New York City Real Property Transfer Tax:
    Rates

    Purchase price of $25,000 or less:None

    Single residential unit for $500,000 or less: 1% of purchase price

    Single residential unit for more than $500,000: 1.425% of purchase price

    Other transfers for $500,000 or less:1.425% of purchase price

    Other transfers for more than $500,000: 2.625% of purchase price

    Filing Fee

    When no return required: $100

    Qualifying residential property:$125

    Other property: $165

  • New York State Real Estate Transfer Tax:
    Rates

    Purchase price of $500 or less: None

    Purchase price of more than $500:$2.00 per $500 or part thereof

  • Form RP-5217-NYC Filing Fee:

    1- to 3-family homes and residential condos: $125

    Other property: $250

  • New York State Stock Transfer Tax: $0.05 per share
  • UCC-3 Filing Fee: $100
  • Nonresident Real Property Est. Income Tax Withholding:8.82% of estimated gain
  • FIRPTA Withholding:
    Rates

    Purchase price of $300,000 or less:None

    Purchase price of $300,000 – $1 million: 10% of purchase price

    Purchase price of more than $1 million: 15% of purchase price

OTHER EXPENSES

Pick Up/Payoff Fee: $100 – $500

Misc. Other Fees: $200 or more

CLOSING COSTS PAID BY THE BUYER

BANK FEES

Application & Processing Fees:$700 or more

Appraisal Fee: $300 – $1,500

Bank Attorney’s Fee: $650 – $1,000

Bank Fee: $750

Credit Report Fee: $25 – $100 per individual

Fee Title Insurance: Varies

Mortgage Title Insurance: Varies

Municipal Search: $300 – $500 or more

Origination/Points: 0% – 3% of loan amount

Tax Escrows: 2 – 6 months

PROFESSIONAL FEES

Buyer’s Attorney’s Fee: Varies

TAXES & GOVERNMENT FEES
  • Mansion Tax:
    Rates

    Purchase price of $1 million or less:None

    Purchase price of more than $1 million: 1% of purchase price

  • New York State & New York City Mortgage Recording Tax:
    Rates

    Loan amount less than $500,000:2.05% of loan amount

    Loan amount more than $500,000: 
    Single 1-3 family residence – 2.175% of loan amount
    Other property – 2.8% of loan amount

  • Recording Fees: $250 – $750

NOTES

1. Broker Commissions. When the buyer is represented by a real-estate agent, the 6% commission paid by the seller is split between the seller’s and buyer’s agents.

2. New York City Real Property Transfer Tax. For more information about the Real Property Transfer Tax, see our service page for Real Property Transfer Tax Appeals.

3. Nonresident Real Property Estimated Income Tax Withholding. When the seller of New York real estate lives outside of the state, the buyer is required to withhold an amount equal to 8.82% of the seller’s estimated gain from the sale and remit that amount to the state.

4. Foreign Investors in Real Property Transactions Act (FIRPTA). When the seller of New York real estate is a nonresident alien, FIRPTA requires the buyer to withhold an amount equal to 10% (if the purchase price is over $300,000 but no more than $1,000,000) or 15% (if the purchase price exceeds $1 million) of the gross purchase price and remit that amount to the IRS.

For more information about FIRPTA and how foreign sellers can minimize the amount withheld, see How Foreign Investors Can Reduce or Eliminate FIRPTA Withholding Upon Sale of U.S. Real Estate.

RESOURCES

DISCLAIMERS

This closing cost guide is provided for your convenience and does not constitute legal advice. The information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Prior results do not guarantee a similar outcome.

Tax Disclaimer: The information contained herein is general in nature and based on authorities that are subject to change. We do not guarantee neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. We assume no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein. This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations.

Circular 230 Disclosure: This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer.

This article is provided for your convenience and does not constitute legal advice. The information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Prior results do not guarantee a similar outcome.

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