Typical estimated closing costs for condominium apartments and lofts in Manhattan and all of New York City are listed below for both buyer and seller.
Important note: when buying in new developments the purchaser pays both the developer's closing costs as well as their own. These costs usually include the following charges:
Purchaser's Closing Costs:
Buyer's Attorney: varies
Bank Fes: $750
Application Fee: $500
Appraisal Fee: $300 - $1500 (depending on sales price)
Credit Report Fee: $9.80 single/$14.60 joint
Bank Attorney: $750 - $850
Tax Escrow: 2 to 6 months
Recording Fees: $250 - $750
Mortgage Tax: 1.8% of mortgage on loans under $500K; or 1.925% on amounts over $500K
Fee Title Insurance: Approx. $450 per $100K of sales price under $1M + 15% on $1M or more
Mortgage Title Insurance: Approx. $130 per $100K of mortgage amount
Municipal Search: $350 - $500
Mansion Tax: 1% of entire purchase where price is $1,000,000 or more.
Seller's Closing Costs (paid by purchaser in new develpments):
Sponsor's Legal Fee: $1,000 - $2,000
Transfer Taxes: 1.425% of Purchase Price if under $500K; 1.825%of Purchase Price if $500K or more
Working Capital Fund: 1 or 2 months of common charges
Processing Fee: $450+
Miscellaneous Title Fees: $200 - $800
Additional Expenses:
Common Charge Adjustment: Pro-rated for the month of closing
Real Estate Tax Adjustment: Pro-rated depending on when the tax is collected
Miscellaneous Condominium Charges: varies by building
Short Term Interest: Equal to interest for balance of month in which you close
Note: these are estimates used by many local brokers to give you a rough idea of what to be prepared for on closing costs. Consult you attorney for up to date information on current rates and fees, which may differ. Charges on co-ops are slightly different from those on condominiums because they involve stock transfer rather than real property. Again, consult your attorney.
Some other things to know: in new developments it is customary in New York that certain items are left to the buyer to finish. These include sealing all stoneware such as counter tops, and installing closet rods.
NOTE: Many developers of new condos in New York are now offering to pay some closing costs in the wake of the market collapse. Check with your agent and the sales manager of your development. It never hurts to ask.
