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

• Agent commission: Negotiated before listing, based on the property and the scope of the work

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 of $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 estimated income tax withholding: 10.9% of the taxable gain, only applicable to non-New York residents

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

  Additional taxes on capital gains 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 of $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 a $1,750,000 purchase price with financing at 80% loan-to-value and $3,500 attorney fees.

Estimated Buyer Closing Costs

• Mansion Tax: $17,500 (1% of purchase price)

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

• Mortgage Recording Tax: $26,950 (1.925% on a $1,400,000 mortgage)

• 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: $64,950 (about 3.7% of the purchase price)

Estimated Seller Closing Costs, Before Agent Commission

• NYC Transfer Tax: $24,938 (1.425%)

• NY State Transfer Tax: $7,000 (0.4%)

• 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, Before Agent Commission: $37,188

Estimated Proceeds Before Agent Commission: $1,712,812

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 $26,950 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, TP-584. For multiple units purchased by a single buyer and deemed a bulk sale, the NYC transfer tax rate is 2.625%.

If you’re weighing a condo against a co-op, the closing cost gap is one of the biggest differences. See my guide to co-op closing costs and my co-op vs. condo breakdown.

Common Questions

What are the closing costs for a condo buyer in Brooklyn?

Condo buyer closing costs typically run 3% to 4% of the purchase price. The largest items are the mortgage recording tax if you’re financing (1.8% on loans under $500,000 and 1.925% on loans of $500,000 or more), the mansion tax on purchases of $1 million or more, and title insurance. Attorney fees typically run $2,500 to $5,000, plus building fees.

What is the mortgage recording tax in New York?

It’s paid by condo and townhouse buyers who finance their purchase: 1.8% on mortgages under $500,000 and 1.925% on mortgages of $500,000 or more. On a $1.4 million mortgage, that’s $26,950. It does not apply to co-op purchases, which is one reason co-op closing costs are much lower.

Who pays transfer taxes when selling a condo in Brooklyn?

In a standard resale, the seller pays both. The NYC transfer tax is 1% on sales of $500,000 or less and 1.425% above $500,000. The New York State transfer tax is 0.4% under $3 million and 0.65% at $3 million or more. In new development sales, the buyer typically pays them instead.

Are closing costs higher for condos or co-ops?

Yes, condos cost more to close, mainly because of the mortgage recording tax and title insurance, neither of which applies to co-ops. A buyer financing a $1.75 million condo can expect about $65,000 in closing costs. A co-op buyer at the same price would typically pay roughly $25,000.