Closing Costs

Law Office of Brian M. Tracz, P.C. > 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.

SELLERCOOPERATIVE 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

PURCHASERCOOPERATIVE APARTMENT

TITLE EXPENSES:

Lien Search

Typically $275.00-$350.00

UCC Filing Fee

$100.00-$150.00

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 purchasefrom 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

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

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

-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)

ATTORNEY’S FEE:

Varies

APARTMENT INSURANCE:

Liability insurance and insurance for casualty and theft for personal propertyAnnual premium for basic coverage varies according to type and amount of insurance, which supplements the insurance carried by the building

CONDOMINIUM APARTMENT

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

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

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

$250.00-500.00

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)

ATTORNEY’S FEE:

Varies

APARTMENT INSURANCE:

SINGLE FAMILY DWELLING/TOWNHOUSE

TITLE EXPENSES:

–Fee Insurance

Approx. 0.5%-0.8% of purchase priceApprox. $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

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

ATTORNEY’S FEE:

Varies

INSURANCE:

Homeowner’s insurance is paid annuallyFirst 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

Closing Costs

CLOSING COSTS FOR A RESIDENTIAL TRANSACTION IN NYC

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