NYC Condo Closing Costs Explained

NYC Condo Closing Costs Explained

Condominiums are common real property. The title to the property is transferred from one owner to the next by the use of a document known as The Deed. The title must be “Marketable” meaning free of any leans or judgments and requires to be insured by a title company to protect against unknown encumbrances.

Typical Condominium or Townhouse closing costs are as follows:

  • Buyer’s Attorney: $1650
  • Management Fee: $250
  • Credit Check: $100
  • If using a Mortgage add:
  • Application Fee: $650
  • Appraisal fee: $375-750 depending on property size and value
  • Bank’s Attorney: $750
  • Recording Fees: $430
  • Title Search: $300

Title Insurance: approximately 0.5% of the purchase price
NY City and State Mortgage Recording Tax: just under 2% of the loan amount

This estimate is the bulk of costs you can anticipate when purchasing a condominium in NYC.

NOTE: any property sold in the city of NY over $1 million dollars is subject to 1% Mansion Tax. Be sure to factor it into your budget if your purchase price exceeds $1 million. Additionally any discount points you CHOOSE to pay your lender in effort to reduce your effective borrowing rate will add to the overall expense.

 

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