Co-op Closing Costs in Brooklyn

Co-op Seller Closing Costs

Professional fees

• Seller's attorney: $2,500 to $5,000

• Broker commission: Typically 5 to 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 your tax professional. This is not tax advice.

Frequently Asked Questions

Are co-op closing costs lower than condo closing costs? Generally yes. Co-ops do not involve a deed transfer, which eliminates several condo-specific costs including title insurance and mortgage recording tax. Building fees can still vary widely, so confirm the specific schedule with the managing agent early in the process.

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 reserve fund. Despite the name, it is not a government tax. The formula varies by building and is typically paid by the seller, though it can be negotiated depending on the deal. Before making an offer on a co-op, find out whether the building has a flip tax and what the formula is.

What is a maintenance adjustment? Maintenance is typically 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 use UCC filings to secure their interest in those shares.

Do these costs apply to every co-op? The categories are common but the 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

• 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

• Building Move-out Fee: $500

• Building Managing Agent Closing Fee: $500

• Flip Tax: $35,000

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

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.