Condo and Townhouse Closing Costs in Brooklyn

What to Expect at the Closing Table

Condo and townhouse closing costs in Brooklyn are meaningfully higher than co-op closing costs, primarily because of title insurance and the mortgage recording tax. For buyers financing a condo at $1.5 million, closing costs can easily reach $50,000 or more before you factor in the down payment. Knowing what each line item is and why it exists changes how you plan and what you negotiate.

The breakdowns below cover what buyers and sellers typically pay in a Brooklyn condo and townhouse transaction. The sample estimate at the bottom puts the numbers in context. These figures are a planning tool. Your attorney will confirm what applies to your specific deal.

Condo and Townhouse Buyer Closing Costs

Professional fees

• Buyer's attorney: Varies, typically $2,500 to $5,000

Title related costs

• Title insurance, title search, and recording fees: 0.6% of sale price and up

Building fees, condos only

• Building application fee: $500 and up

• Move-in deposit: $500 to $1,000

• Working capital fund contribution, if applicable: One-time fee equal to 1 to 3 months of common charges

• Contribution to the superintendent or resident manager's unit: Varies, confirm with the building

Prorations at closing

• Common charges, property taxes, and insurance premium adjustments: Prorated as of the closing date

Mansion Tax Applies to purchase prices of $1,000,000 and up:

• $1M to under $2M: 1%

• $2M to under $3M: 1.25%

• $3M to under $5M: 1.5%

• $5M to under $10M: 2.25%

• $10M to under $15M: 3.25%

• $15M to under $20M: 3.5%

• $20M to under $25M: 3.75%

• $25M and up: 3.9%

Mortgage fees, if financing

• Origination costs or points: 0% to 3% of the loan amount

• Application, credit check, and related lender fees: Varies

• Appraisal: Varies

• Bank attorney: $800 to $1,250

• Mortgage recording tax: 1.8% for mortgages under $500,000; 1.925% for mortgages of $500,000 or more. For townhouses and one to two family homes, subtract $30 from the total

• Real estate tax escrow: 0 to 6 months depending on lender requirements

Condo and Townhouse Seller Closing Costs

Professional fees

• Seller's attorney: Varies, typically $2,500 to $5,000

• Broker commission: Typically 5 to 6%

Transfer taxes

• NYC Real Property Transfer Tax: 1% of sale price if $500K or less; 1.425% if more than $500K

• NYS transfer tax: 0.4% of sale price for transactions under $3M; 0.65% for transactions $3M and up

Other seller costs

• Payoff bank fees, if applicable: $250 and up

• E-tax filing, ACRIS: $100

Condos only

• Reserve fund contribution, if applicable: Determined by the condo board; often payable by the buyer unless otherwise negotiated

• Managing agent fees: $650 and up

• Move-out deposit: $500 to $1,000

Withholding, in certain cases

• NYS capital gains tax withholding: 8.97% of taxable gain on sale, only applicable to non-New York residents

• Federal withholding tax, FIRPTA: 10% to 15% of sale price if seller is a non-U.S. resident

Additional taxes on capital gain may apply. Consult your tax professional. This is not tax advice.

Additional Costs for New Development Condos

Buying a new development condo involves a few additional costs that resale purchases do not:

• NYC Real Property Transfer Tax: 1% to 1.425% of sale price, typically paid by the buyer in new development transactions rather than the seller

• NYS transfer tax: 0.4% of sale price; 0.65% for transactions $3M and up, also typically paid by the buyer

• Transfer taxes may be calculated using a bulked-up price for tax purposes only; confirm with the sponsor's attorney

• Sponsor attorney fee: $2,500 to $3,500

• Working capital fund contribution: One-time fee equal to 1 to 3 months of common charges depending on the condominium

• Contribution to the resident manager's unit: Varies, confirm with the building

Sample Condo Closing Cost Breakdown

Assumes $1,750,000 purchase price with financing, 5% broker commission, and $3,500 attorney fees.

Estimated Buyer Closing Costs

• Mansion Tax: $21,875 (1.25% of purchase price)

• Title Insurance and Title Search: $10,500 (approx. 0.6% of purchase price)

• Mortgage Recording Tax: $26,894 (1.925% on a $1,400,000 mortgage at 80% LTV)

• Buyer's Attorney Fee: $3,500

• Bank Attorney Fee: $1,000

• Appraisal Fee: $750

• Loan Application and Related Fees: $1,000

• Move-in Deposit: $1,000

• Building Application Fee: $500

• Working Capital Fund Contribution: $1,500 (estimated)

• Recording and Miscellaneous Fees: $750

Estimated Buyer Total Closing Costs: $69,269

Estimated Seller Closing Costs

• Broker Commission: $87,500

• NYC Transfer Tax: $24,938

• NY State Transfer Tax: $7,000

• Seller's Attorney Fee: $3,500

• Payoff Bank Fees: $500

• Managing Agent Fee: $650

• Building Move-out Fee: $500

• E-tax Filing: $100

Estimated Seller Closing Costs: $124,688 Estimated Net Sale Proceeds: $1,625,312

This breakdown is a sample estimate for planning purposes only. Actual closing costs vary based on the specific building's fee schedule, the terms of the deal, financing requirements, and each party's legal and tax situation. Confirm all costs with the managing agent, lender, and your attorney before closing.

A Few Things Worth Knowing

The mortgage recording tax is the single largest surprise cost for condo buyers who are financing. On a $1.4 million mortgage it adds nearly $27,000 to closing costs. It does not apply to co-ops, which is one reason co-op closing costs are substantially lower.

The mansion tax is paid by the buyer and applies to the full purchase price, not just the amount above $1 million. A purchase at $999,999 has no mansion tax. A purchase at $1,000,001 triggers $10,000. This creates a real pricing dynamic around that threshold that is worth understanding before you negotiate.

New York State law requires a written letter of engagement if your legal fee will exceed $3,000. Non-New York State residents should obtain exemption forms for state transfer tax, TP584. For multiple units purchased by a single buyer deemed a bulk sale, the NYC transfer tax rate is 2.625%.