Closing Costs:
Co-ps

What buyers and sellers typically pay in NYC

Closing Costs: Co-ops

Co-op closing costs vary by building, purchase price, and whether you are financing. Below are the most common line items buyers and sellers should expect in a New York City co-op transaction.

Co-op Buyer Closing Costs (NYC)

Professional fees

  • Buyer’s attorney: $2500 to $5000

  • Buyer’s broker commission: Varies (only if applicable based on your agreement)

Building fees

  • Building or managing agent fee: $500 and up

  • Move in deposit: $500 to $1,000 (typically refundable if no damage)

Due diligence and prorations

  • Lien search: $350 plus applicable sales tax

  • Maintenance adjustment: Prorated for the month of closing

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 fees: $500 and up

  • Appraisal: Varies

  • Bank attorney: $800 to $1,250

  • UCC 1 filing: $125

Co-op Seller Closing Costs (NYC)

Professional fees

  • Seller’s attorney: $2500 to $5000

  • Broker commission: Typically 5-6%

Building and managing agent fees

  • Managing agent fees: $650 and up

  • Move out deposit: $1,000

  • Lost stock and lease fees (if applicable): $250 and up

  • Estate fees (if applicable): Co-op may impose additional fees for estate sales

  • Flip tax (if applicable): Determined by the co-op building unless otherwise stated or negotiated

Transfer related items

  • Stock transfer stamps: $0.05 per share

  • UCC 3 filing (if applicable): $75 to $125

  • Payoff bank attorney (if applicable): $450 to $550

  • E tax filing (ACRIS): $100

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

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 with your tax professional to ensure compliance. Corcoran is not a licensed tax advisor.

FAQ

Are co-op closing costs lower than condo closing costs?
Often, yes. Co-ops generally do not involve a deed transfer, and the fee structure can be simpler. That said, building fees can vary widely, so it is smart to confirm the specific schedule early.

What is a flip tax?
A flip tax is a fee charged by some co-ops at the time of sale to support the building’s reserves. Despite the name, it is not a city tax. The formula differs by building and it may be paid by the seller or negotiated depending on the deal.

What is a maintenance adjustment?
Maintenance is usually paid monthly in advance. At closing, the buyer reimburses the seller for the portion of the month after the closing date.

Why are there UCC filings for co-ops?
Co-op ownership is represented by shares and a proprietary lease rather than a deed. When there is financing, lenders commonly use UCC filings to secure their interest.

Do these costs apply to every co-op?
The categories are common, but required fees and amounts vary by building, managing agent, and lender. Your attorney will confirm what applies to your specific transaction.

Sample Co-op Closing Cost Breakdown

Assumes $1,750,000 purchase price, 2% flip tax, 5% broker commission, and $3,500 attorney fees

Estimated Buyer Closing Costs

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

  • Buyer’s Attorney Fee: $3,500

  • Move-in Deposit: $1,000

  • Board Application Fees: $500

  • Move-in Fee: $500

  • Building Questionnaire Fee: $350

  • Lien Search Fee: $300

  • Credit Check: $100

Financing Related Costs (If Financing)

  • Bank’s Attorney Fee: $1,000

  • Loan Application Fee: $1,000

  • Appraisal Fee: $750

  • Recognition Agreement Fee: $350

  • UCC-1 Filing Fee: $100

Estimated Buyer Total Closing Costs: $26,950

Estimated Seller Closing Costs

  • NYC Broker Commission: $87,500

  • NYC Transfer Tax: $24,938

  • NY State Transfer Tax: $7,000

  • Seller’s Attorney Fee: $3,500

  • Mortgage Satisfaction Recording Fee: $100

  • Bank Loan Satisfaction Fees: $50

  • Seller Power of Attorney Recording Fee: $0

  • Building Move-out Fee: $500

  • Building Managing Agent Closing Fee: $500

  • Building Flip Tax — $35,000

  • Co-op UCC-3 Termination Fee: $0

  • Co-op Transfer Tax Filing Fee: $0

  • Co-op Stock Transfer Tax: $0

Estimated Seller Closing Costs: $159,088
Estimated Net Sale Proceeds: $1,590,912

Disclaimer: This breakdown is a sample estimate for planning purposes only. Actual closing costs can vary significantly based on the specific co-op’s fee schedule, the terms of the deal, financing and lender requirements, and each party’s legal and tax situation. Buyer and seller costs should be confirmed with the managing agent, lender, and your attorney for the specific transaction.

Craig Yoskowitz Brooklyn real estate agent

Work With Craig

Whether you are early in your search or prepared to move quickly, thoughtful planning makes a difference. If you are considering a purchase in Brooklyn or Manhattan, I would be glad to help you navigate the process with clarity and confidence.

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