closing costs

CLOSING COSTS FOR A RESIDENTIAL TRANSACTION IN NYC

December 2017
This is offered as a guide to estimating the usual closing costs incurred in a transaction for a cooperative apartment, condominium apartment, residential single family residences, townhouses and multi-family residences.

SELLER

COOPERATIVE APARTMENT

1. TRANSFER TAXES:
TYPE OF TAX CONSIDERATION TAX
NYC $500,000.00 or less 1% of sale price
Over $500,000.00 1.425 % of sale price
Filing fee for 5217 $100.00-$150.00
Unofficially combined apartments:

-NYC currently treats as two apartments

and applies higher tax rate

1.425% of sale price

if price is $500,000.00 or less

and 2.625% of sale price

if price is over $500,000.00

NYS All transactions $4.00 per thousand of sale price
Stock Transfer Stamps $0.05 per share
2. FLIP TAX: (if applicable) Varies with building
3. LEGAL FEES: Varies
4. TRANSFER AGENT FEE: Typically between $500.00-$1,000.00
5. MOVE OUT FEE/DEPOSIT: (if applicable) Typically between $500.00-$1,000.00
6. BROKERAGE COMMISSION: Typically 6% of purchase price
7. PAYOFF BANK LEGAL FEE: (if applicable) $400.00-$500.00
8. UCC-3 TERMINATION FILING FEE: (if applicable) $100.00-$125.00
9. LOAN PAYOFF: (if applicable) TBD
CONDOMINIUM APARTMENT
1. TRANSFER TAXES:
TYPE OF TAX CONSIDERATION TAX
NYC $500,000.00 or less 1% of sale price
Over $500,000.00 1.425 % of sale price
Filing fee for 5217 $100.00-$150.00
Unofficially combined apartments:

-NYC currently treats as two apartments

and applies higher tax rate

1.425% of sale price

if price is $500,000.00 or less

and 2.625% of sale price

if price is over $500,000.00

NYS All transactions $4.00 per thousand of sale price
2. FLIP TAX: (if applicable) Varies with building
3. LEGAL FEES: Varies
4. WAIVER APPLICATION FEE: Typically $500.00-$1,000.00
5. MOVE OUT FEE/DEPOSIT: (if applicable) Typically between $500.00-$1,000.00
6. BROKERAGE COMMISSION: Typically 6% of purchase price
7. PICK-UP FEE TO TITLE CLOSER: (if applicable) $250.00-$400.00
8. FILING FEE FOR MORTGAGE SATISFACTION: Up to $300.00
9. LOAN PAYOFF: (if applicable) TBD
SINGLE FAMILY/TOWNHOUSE
1. TRANSFER TAXES:
TYPE OF TAX CONSIDERATION TAX
NYC $500,000.00 or less 1% of sale price
Over $500,000.00 1.425 % of sale price
Filing fee for 5217 $100.00-$150.00
NYS All transactions $4.00 per thousand of sale price
2. LEGAL FEES: Varies
3. BROKERAGE COMMISSION: Typically 6% of purchase price
4. PICK-UP FEE TO TITLE CLOSER: (if applicable) $250.00-$400.00
5. FILING FEE FOR MORTGAGE SATISFACTION: Up to $300.00
6. LOAN PAYOFF: (if applicable) TBD
7. MISCELLANEOUS TITLE FEES: Typically $200.00-$500.00
IMPORTANT NOTES FOR SELLERS
  • FIRPTA tax withholding may apply (10% of the sales price) if Seller is not exempt
    • Most sellers are exempt (consult your attorney)
  • NYS Estimated Capital Gain withholding may apply if Seller does not qualify as NYS resident (consult your attorney)
  • Transfer tax may be reduced if a continuing lien deduction situation arises (consult your attorney)
  • Any prepaid taxes, maintenance charges, and/or commission charges will be reimbursed at closing
  • Additional fees may apply if Seller is an Estate or Trust
PURCHASER

COOPERATIVE APARTMENT

1. TITLE EXPENSES:
Lien Search Typically $275.00-$350.00
UCC Filing Fee $100.00-$150.00
2. MANSION AND TRANSFER TAXES:
TYPE OF TAX TAXABLE TRANSACTION TAX
Mansion Tax Sale price of $1 million or more 1% of sale price
NYC/NYS Transfer Taxes Payable by Purchaser only in purchase

from a developer/sponsor.

  • $500,000.00 or less
NYC 1.014%

NYS $4.06 per thousand

  • $500,000.00 or more
NYC 1.451%

NYS $4.074 per thousand

3. LOAN CLOSING COSTS:
Consult your lender on the following:
  • Bank attorney fee
Typically $900.00-$1200.00
  • Appraisal
$500.00-1,200.00
  • Credit report fee
$20.00-$25.00
  • Processing fee
TBD
  • Short term interest
Interest from closing date to end of month
  • Origination fee
TBD
4. BUILDING FEES:
Application fee

-Credit Report Fee

-Move in fee (if applicable)

-Move in deposit (if applicable)

-Aztec Recognition Agreement Fee (if loan)

-Prepaid Maintenance

-Flip Tax (Purchaser flip taxes are rare)

$500.00-$1,000.00

$25.00-$100.00 per applicant

$500.00-$1,000.00
$500.00-$1,000.00
$250.00-500.00

Varies

Varies

-Additional fees in direct purchase from Sponsor/Developer

(Includes estimated sponsor’s attorney fee of $1.500.00, seller transfer fee
To cooperative approx. $750)

5. ATTORNEY’S FEE: Varies
6. APARTMENT INSURANCE:
Liability insurance and insurance for casualty and theft for personal property

Annual premium for basic coverage varies according to type and amount of insurance, which supplements the insurance carried by the building

CONDOMINIUM APARTMENT
1. TITLE EXPENSES:
Fee Insurance Approx. 0.5%-0.8% of purchase price
Approx. $450.00 per $100k of sales price under 1 million plus 15% on $1 million or more
Mortgage (Lender) Ins. Approx. $130.00 per $100k of mortgage amount
-Searches $350.00-$450.00
Recording Fees $350.00-$1,000.00
Title Endorsements $75.00-$100.00
Prepaid Taxes Next ¼ real estate taxes may be collected at closing
-Mansion Tax Sale price of $1 million or more 1% of sale price
-NYC/NYS Transfer Taxes Payable by Purchaser only in purchase from a developer/sponsor.
  • $500,000.00 or less
NYC 1.014%

NYS $4.06 per thousand

  • $500,000.00 or more
NYC 1.451%

NYS $4.074 per thousand

Real Estate Taxes Next ¼ real estate taxes due and payable within 60 days of closing
Mortgage Recording Tax Under $500,000.00 1.80% of mortgage>
Over   $500,000.00 1.925% of mortgage
2. LOAN CLOSING COSTS:
Consult your lender on the following:
  • Bank attorney fee
Typically $900.00-$1200.00
  • Appraisal
$500.00-1,200.00
  • Credit report fee
$20.00-$25.00
  • Processing fee
TBD
  • Short term interest
Interest from closing date to end of month
  • Origination fee
TBD
  • Tax Escrows
2 months of taxes
3. BUILDING FEES: -Application fee

-Credit Report Fee

-Move in fee (if applicable)

-Move in deposit (if applicable)

-Closing fee for Waiver (if applicable)

-Prepaid Maintenance

-Flip Tax (Purchaser flip taxes are very rare)

$500.00-$1,000.00

$25.00-$100.00 per applicant

$500.00-$1,000.00

$500.00-$1,000.00

$250.00-500.00

Varies

Varies

-Additional fees in direct purchase from Sponsor/Developer

(Includes estimated sponsor’s attorney fee of $1.500.00, capital

contribution of two months common charges, 421a reimbursement)

4. ATTORNEY’S FEE: Varies
5. APARTMENT INSURANCE:
Liability insurance and insurance for casualty and theft for personal property

Annual premium for basic coverage varies according to type and amount of insurance, which supplements the insurance carried by the building

SINGLE FAMILY DWELLING/TOWNHOUSE
1. TITLE EXPENSES:
Fee Insurance Approx. 0.5%-0.8% of purchase price

Approx. $450.00 per $100k of sales price under 1 million plus 15% on $1 million or more

Mortgage (Lender) Ins. Approx. $130.00 per $100k of mortgage amount
-Searches $350.00-$450.00
Recording Fees $350.00-$1,000.00
Title Endorsements $75.00-$100.00
Prepaid Taxes Next ¼ real estate taxes may be collected at closing
-Mansion Tax Sale price of $1 million or more 1% of sale price
-NYC/NYS Transfer Taxes Payable by Purchaser only in purchase from a developer/sponsor.
  • $500,000.00 or less
NYC 1.014%
NYS $4.06 per thousand
  • $500,000.00 or more
NYC 1.451%

NYS $4.074 per thousand

Real Estate Taxes Next ¼ real estate taxes due and payable within 60 days of closing
Mortgage Recording Tax Under $500,000.00 1.80% of mortgage
$500,000.00 or more 1.925% of mortgage
Developer’s Attorney Fee (if applicable) Typically $1,500.00
2. LOAN CLOSING COSTS:
Consult your lender on the following:
  • Bank attorney fee
Typically $900.00-$1200.00
  • Appraisal
$500.00-1,200.00
  • Credit report fee
$20.00-$25.00
  • Processing fee
TBD
  • Short term interest
Interest from closing date to end of month
  • Origination fee
TBD
  • Tax Escrows
2 months of taxes
3. ATTORNEY’S FEE: Varies
4. INSURANCE:
Homeowner’s insurance is paid annually

First year’s premium is due prior to closing

  • Rate varies based on desired coverages but minimum is approximately $1,200.00
IMPORTANT NOTES FOR PURCHASERS
  • If Purchaser does not receive Property Condition Disclosure Statement prior to contract execution,

    Purchaser receives a $500.00 credit from Seller at closing with certain exceptions

  • Transfer taxes may be Purchaser’s responsibility on Sponsor Purchase or Purchase from Developer
  • Purchaser must credit Seller at the closing for prepaid items such as taxes, insurance, maintenance and/or assessment charges