Closing costs

There are a number of transaction costs that arise from the purchase and sale of real estate in New York. These costs, known as closing-costs, vary based on the type of property you are transacting, the size, the gross sales price and whether or not the purchase is being made with a mortgage.

Below we have listed some of the closing costs that we come across on a daily basis. This list is not exhaustive and it is your responsibility to verify with your lawyer and/or bank representative that this information is correct. This information is subject to change, errors and omissions.

Cooperative
Condominium/Townhouses
Multifamily/Commercial Real Estate


Cooperative

For The Seller

Seller's lawyer $1,750+
Stock Transfer Tax $.05 per share
NYC Real Property Transfer Tax 1% of gross sale price (if latter is $500,000 or less)
1.425% of gross sale price (if latter is over $500,000)
NY State Real Estate Transfer Tax 0.4% of gross sale price
Flip Tax  See house rules if applicable
Bank Attorney (if seller has mortgage) $600+
Managing Agent Fee/ Co-op Attorney $600 - $2,500
Move-Out Deposit $1,000 - $2,500 (usually refundable)
Broker Commission 6% of gross sale price
Estate Fees Co-op may impose additional fees for estate sales
FIRPTA Withholding (for foreign nationals) 10% of price 

For The Purchaser

Own Attorney $2,000+
Managing Agent Application Fee/Co-op Attorney $750- $1,500
Mansion Tax 1% of gross sales price when over $1,000,000
Move-in Deposit $500 - $1,000 (usually refundable if no damage)

Mortgage Associated Fees

Maintenance Adjustment Prorated for month of closing
Loan Origination Costs – points 0 - 3% principal amount
Credit Report Fee $50-100 per applicant 
Appraisal $450+ 
Bank Attorney $500+
UCC-1 Filing $50+ 
Recognition Agreement Fee $200+ 
Lien Search $425
Application $400-450

 


Condominium/Townhouses

For The Seller

Seller's lawyer $2,000-2,500 
NYC Real Property Transfer Tax 1% of gross sale price (if latter is $500,000 or less)
1.425% of gross sale price (if latter is over $500,000)
NY State Transfer Tax 0.4% (.004) of gross sale price
Satisfaction of Mortgage Fees (if Seller has Mortgage) $450+
Managing Agent Fee (if condo) $500 - $750
Move-Out Deposit (if condo) $1,000-2,500 (usually refundable if no damage)
Broker Commission 6% of gross sale price
E Tax Filing (ACRIS) $150
FIRPTA Withholding (for foreign nationals) 10% of price

For The Purchaser
Own Attorney $1,750+
Credit Report Fee $50-$100 per applicant
Mansion Tax 1% of gross sales price when over $1,000,000
Move-in Deposit (if condo) $500 - $2,500 (usually refundable if no damage)
Building/Structural Due Diligence $650-1,500
Managing Agent Fee (if condo) $250 - $500
Creation of Acquisition Vehicle (usually LLC) $500+

Mortgage Fees
Origination Costs  0 - 3% of loan principal
Application $400-450
Appraisal $275 + up
Bank Attorney $500 + up
UCC-1 Filing $50 + up
Mortgage Recording Tax 2.175% - 2.8% of principal 
Title Insurance 0.3-0.5% of gross sale price
Recording Charge $32.00 + $5.00 per page + $5.00 for Cover Page
Credit Report Fee $50-100/ applicant
Real Estate Tax Escrow 1-6 months

Sponsor Sale
NYC Real Property Transfer Tax 1% of gross sale price (if latter is $500,000 or less)
1.425% of gross sale price (if latter is over $500,000)
NY State Transfer Tax 0.4% (.004) of gross sale price
Sponsor's Attorney Fee $2,000- $2,500
 
 

Multifamily/Commercial Real Estate    

For The Seller

Seller's lawyer $3,500+
NYC Real Property Transfer Tax 1% of gross sale price (if latter is $500,000 or less)
1.425% of gross sale price (if latter is over $500,000)
NY State Transfer Tax 0.4% (.004) of gross sale price
Satisfaction of Mortgage Fees (if Seller has Mortgage) $500+
Broker Commission 6% of gross sale price
E Tax Filing (ACRIS) $150
Gains Tax Withholding (out of state seller) 7.7% of gain
FIRPTA Withholding (for foreign nationals) 10% of price

For The Purchaser
Own Attorney $4,500+
Building/Structural Due Diligence $650-1,500
Zoning Due Diligence $1,500+
Phase 1 Environmental Inspection $750+
Creation of Acquisition Company (usually LLC) $1,500+

Mortgage Fees
Origination Costs 0 - 3% of loan principal
Application $400-450
Appraisal $1,500 + up
Bank Attorney $500 + up
UCC-1 Filing $50 + up
Mortgage Recording Tax 1.8% of principal (if latter is less than $500,000)
1.925% of principal (if latter is greater than $500,000)
Title Insurance 0.3-0.5% of gross sale price
Recording Charge $32.00 + $5.00 per page + $5.00 for Cover Page
Credit Report Fee $50-100/ applicant
Real Estate Tax Escrow 1-6 month
Insurance Escrow 8 months