CLOSING COSTS for NYC CONDOS and TOWNHOUSES
In the intricate world of Brooklyn real estate, understanding the financial intricacies of purchasing a home goes beyond just the listing price. Condos and townhouses, two of the most sought-after property types in the area, come with their unique set of closing costs. As you embark on your home buying journey, it's imperative to have a clear grasp of these costs to prepare adequately and ensure a smooth transaction. In this guide, we'll break down the closing costs associated with condos and townhouses, ensuring you're well-equipped for your next real estate venture. Read about closing costs for co-ops.
FOR THE SELLER
Own Attorney: Varies*
NYC Real Property Transfer Tax: 1% of sale price if $500K or less; 1.425% of sale price if more than $500K**
NYS Transfer Tax: 0.4% of sale price for transactions less than $3M. 0.65% of sale price for transactions greater than or equal to $3M
Reserve Fund Contribution (if applicable)†: Determined by condo board; Payable by buyer unless otherwise stated
Payoff Bank Fees (if applicable): $250 and up
Managing Agent Fees†: $650 and up
Move-Out Deposit†: $500 - $1,000 (usually refundable if no damage)
Broker Commission: 6% of sale price
E Tax Filing (ACRIS): $100
Property Condition Disclosure Statement Waiver Fee: $500 - $1,000
NYS Capital Gains Tax Withholding: 8.97% of taxable gain on sale (Only applicable to non-NY residents)
Federal Withholding Tax (FIRPTA): 10% - 15% of sale price if seller is non-U.S. resident (Additional taxes on capital gain associated with the sale of real estate including Federal, State and the specialized Medicare tax may apply. Consult with your tax professional to ensure compliance with all applicable tax regulations. Corcoran is not a licensed tax advisor.)
FOR THE PURCHASER
Own Attorney: Varies*
Building Application: $500 and up
Title Insurance, Title Search & Recording Fees: 0.6% of sale price and up
Move-in Deposit†: $500 - $1,000 (usually refundable if no damage)
Contribution to the Superintendent’s Residence: Prices can vary so be certain to inquire
Common charges, property taxes & insurance premium: Adjustments pro-rated as of closing
Mansion Tax: Sale price over $1M but less than $2M = 1%
Sale price from $2M to less than $3M = 1.25%
Sale price from $3M to less than $5M = 1.5%
Sale price from $5M to less than $10M = 2.25%
Sale price from $10M to less than $15M = 3.25%
Sale price from $15M to less than $20M = 3.5%
Sale price from $20M to less than $25M = 3.75%
Sale price from $25M and up = 3.9%
MORTGAGE ASSOCIATED FEES
Origination Costs – points: 0 - 3% of loan
Application, Credit Check, etc: Varies*
Appraisal: Varies*
Bank Attorney: $800 - $1,250
Mortgage Recording Tax: 1.8% for all mortgages less than $500,000; 1.925% for all mortgages of $500K or more minus $30 for townhomes
Real Estate Tax Escrow: 0 - 6 months, depending on lender requirements
* Check with bank/mortgage broker for additional fees. New York State Law requires a written letter of engagement if the legal fee will exceed $3,000. Non New York State residents should procure exemption for state transfer tax forms (TP584). These are only estimates. Please confirm closing costs for specific transactions with your attorney and/or mortgage representative. ** Rate is 2.625% for multiple units purchased by single purchaser if deemed a “bulk sale.” † Not applicable to townhouses.
ONLY FOR NEW DEVELOPMENTS
NYC Real Property Transfer Tax: 1% to 1.425% of sale price**
NYS Transfer Tax: 0.4% of sale price 0.65% of sale price for transactions greater than or equal to $3M (Transfer taxes are calculated and added to sale price (for tax purposes only) and then recalculated based on the bulked up price)
Sponsor Attorney Fee: $2,500 - $3,500
Working capital fund contribution: One-time fee equal to 1 or 2 months common charges, depending on condominium
BUYING OR SELLING NYC REAL ESTATE?
I am an experienced agent with Corcoran in Park Slope who knows how to navigate the fiercely competitive New York City real estate market. With extensive knowledge and experience, I carefully guide buyers and sellers through every twist and turn, providing confidence, value, and the skill to get deals closed. With over 15 years of experience in NYC real estate, I’m here to help achieve your goals. Let’s work together!
