Closing Costs:
Condos and Townhouses

Closing Costs for NYC Condos and Townhouses

Closing costs in New York City go beyond the purchase price. Condos and townhouses share many of the same core closing costs, especially legal fees, transfer taxes, title-related charges, and lender costs if you are financing. Condos can add building-related fees, while townhouses can involve property-specific items depending on how the home is held and financed.

Below is a practical checklist of common closing costs for buyers and sellers in NYC condo and townhouse transactions.

For the Purchaser

Buyer’s attorney: Varies
Title insurance, title search, and recording fees: 0.6% of sale price and up
Mansion tax: Applies for purchases over $1,000,000
Common charges, property taxes, and insurance premium adjustments: Prorated as of closing
Building application: $500 and up, condo only Move-in deposit: $500 to $1,000, condo only
Working capital fund contribution, if applicable: One-time fee equal to 1 to 3 months common charges, condo only
Contribution to the superintendent or resident manager’s unit: Varies, condo only

Mansion Tax

Sale price over $1M but less than $2M: 1%
Sale price from $2M to less than $3M: 1.25%
Sale price from $3M to less than $5M: 1.5%
Sale price from $5M to less than $10M: 2.25%
Sale price from $10M to less than $15M: 3.25%
Sale price from $15M to less than $20M: 3.5%
Sale price from $20M to less than $25M: 3.75%
Sale price from $25M and up: 3.9%

Mortgage Associated Fees (If Financing)

Origination costs, points: 0 to 3% of loan
Application, credit check, and related lender fees: Varies
Appraisal: Varies
Bank attorney: $800 to $1,250
Mortgage recording tax: 1.8% for mortgages less than $500,000; 1.925% for mortgages of $500,000 or more, minus $30 for townhomes and 1 to 2 family homes
Real estate tax escrow: 0 to 6 months, depending on lender requirements

For the Seller

Seller’s attorney: Varies
NYC Real Property Transfer Tax: 1% of sale price if $500K or less; 1.425% of sale price if more than $500K
NYS transfer tax: 0.4% of sale price for transactions less than $3M; 0.65% of sale price for transactions greater than or equal to $3M
Broker commission: Varies
Payoff bank fees, if applicable: $250 and up
E tax filing, ACRIS: $100

Reserve fund contribution, if applicable: Determined by condo board; often payable by buyer unless otherwise stated, condo only
Managing agent fees: $650 and up, condo only
Move-out deposit: $500 to $1,000, condo only

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 non U.S. resident
Additional taxes on capital gain may apply. Consult with your tax professional to ensure compliance with all applicable tax regulations. Corcoran is not a licensed tax advisor.

Only for New Developments

NYC Real Property Transfer Tax: 1% to 1.425% of sale price
NYS transfer tax: 0.4% of sale price; 0.65% for transactions greater than or equal to $3M
Transfer taxes may be calculated using a bulked up price for tax purposes only
Sponsor attorney fee: $2,500 to $3,500
Working capital fund contribution: One-time fee equal to 1 to 3 months common charges, depending on condominium
Contribution to the resident manager’s unit: Varies, confirm with the building

Notes

These are estimates. Please confirm closing costs for your specific transaction with your attorney and or mortgage representative. Check with your bank or mortgage broker for additional lender fees. New York State law requires a written letter of engagement if the legal fee will exceed $3,000. Non New York State residents should procure exemption for state transfer tax forms, TP584. NYC transfer tax rate is 2.625% for multiple units purchased by a single purchaser if deemed a bulk sale.