Stamp Duty, Closing Costs and New York Property
By Wei Min Tan
Stamp duty is a British term and is not a term used in New York property transactions. Here in the United States, we use the term Closing Costs, which is more comprehensive and covers all the transaction cost items, including government taxes (stamp duty).
Here is an outline of Closing Costs when buying or selling a condominium apartment in New York.
Closing Costs for Buyer
- Mortgage tax - paid to the government and only if there is a mortgage involved.
- Title insurance - this is insurance to ensure the new owner will have a clean title
- Mansion tax - this is 1 percent of property price if price is $1 million and above.
- Recording and search fees - various governmental fees.
- Bank fees, Managing Agent fees etc.
Closing Costs to the Buyer is about 5-6 percent of the loan amount if there is financing. If there is no financing, Closing Costs are about 1.5 to 2 percent of property price.
Closing Costs for Seller
- Broker commission - this is usually 6 percent of price and split 50/50 between Buyer's and Seller's agents.
- New York property transfer tax
- Misc recording and filing fees
Closing Costs to the Seller is about 8 percent of sale price.
Copyright Castle Avenue Team at Rutenberg
127 E 56 ST, 4TH FL, NEW YORK, NY 10022 USA212.firstname.lastname@example.org Wei Min Tan is a property broker focusing on Manhattan, New York luxury condominiums and foreign buyers. He is often interviewed by the media including CNN, The New York Times and The Wall Street Journal on the subject of foreign buyers of Manhattan property. View Wei Min's media appearances.
Wei Min can be reached at +1.212.380.6134, email@example.com.
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