NYC Closing Cost Guide: Condos, Coops & Townhouses
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
- NYC Real Property Transfer Taxes
- NYS Real Estate Transfer Tax
- Foreign Investment in New York Real Estate: Tax & Legal Guide
- ACRIS Property Transfer Tax Calculator
- Title Insurance Rate Calculator
- NYS Income (Withholding Tax) Tax for Foreign Sellers
- New York Source Income of Nonresident Individuals: Real Estate
- How Foreign Investors Can Reduce or Eliminate FIRPTA Withholding Upon Sale of U.S. Real Estate
- Before You Buy a Co-Op or Condo
- Rules governing FIRPTA Withholding
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.
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