Transaction Costs: Manhattan Condominium

Posted by Wei Min Tan on September 4, 2017

Transaction costs, better known as “Closing Costs” when buying or selling property in Manhattan, New York.

For the buyer, the all-in works out to around 6 percent of loan amount if there is mortgage financing.  If a cash purchase, it works out to around 2 percent of price.   For the seller, transaction costs amount to around 8 percent of price.

We do not have a “stamp duty,” which is a British term.  Our equivalent of the stamp duty are the various government taxes listed below.

 

For The Buyer (in order to significance, estimated)

Mansion Tax (only for property $1 million or higher):
Mansion tax: 1% of property price

Title Insurance:
Title insurance fee: 0.5% of property price
Market value rider: $250

Mortgage Related Fees (not applicable to all-cash buyers):
Mortgage tax: 1.925% of loan
Origination points: This is a variable used to buy down interest rate, from 0.5% of loan to 4% of loan
Bank application: $1,000
Appraisal: $500

Board Package Fees:
Managing agent: $1,000
Credit report fee: $200 per applicant
Lead based paint disclosure: $50

Closing Services:
Purchaser’s attorney: $2,500
Title closer service fee: $200
Disbursements: $125

Misc Charges:
Municipals: $400
Bankruptcy search: $100
Patriot search: $100
Sales tax: $50

Recording Fees:
Rec Mortgage: $300
Rec Deed: $200
RP5217NYC filing fee: $125
Condo unit power of attorney: $150

Additional:
Condo insurance: $400 to $1500, an annual expense hence not specifically related to closing
Real estate tax : Will be pro-rated back to seller based on what seller has already paid for post closing period.

New York City Transfer Tax: 1.425% of price (only when buying brand new from developer)
New York State Transfer Tax: 0.4% of price (only when buying brand new from developer)

For The Seller (estimated)

Transfer Tax:
New York City Transfer Tax: 1.425% of price
New York State Transfer Tax: 0.4% of price

Broker Fee: Typically 6% of price

Seller’s Attorney: $2,000

Condo Move-Out Fee: $750

Satisfaction of Mortgage: $200

Pickup/payoff fee: $500

 

Related Articles:

Top 5 Mistakes When Investing in New York Property

How To Invest in Manhattan Property, Profit and Repeat

 



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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.