Stamp Duty, Closing Costs and New York Property
Posted by Wei Min Tan on September 2, 2017
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, about 2% of loan amount
- Title insurance – this is insurance to ensure the new owner will have a clean title
- Attorney fees
- 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, 1.825% of sale price
- Attorney fees
- Misc recording and filing fees
Closing Costs to the Seller is about 8 percent of sale price.
Related:
Foreign Buyer Guide to New York Property
New York property prices graph
Benefits and risks of buying New York property
