September 4, 2025
The short version
Closing costs can swing a deal. Getting the math right early keeps offers clean and expectations aligned. This guide covers NYC closing costs buyers and sellers ask about most, with current brackets and plain-English examples.
Buyer closing costs: what to expect
Your list changes by property type and financing. Here are the usual line items.
Applies to most purchases
Attorney fee
Building and managing agent fees: application, move-in, docs
Searches: title or lien, municipal searches
Condo or townhouse with financing
Mortgage Recording Tax on the loan amount. Effective buyer share in NYC is typically 1.8% for loans under $500,000 and 1.925% for loans of $500,000 and above, because lenders usually cover 0.25% of the statutory total. Co-ops do not pay this tax.
Title insurance and endorsements
Bank and third-party fees: appraisal, credit, bank attorney, recording
Condo or townhouse paid in cash
No Mortgage Recording Tax
Title insurance and searches still apply
Co-op with or without financing
No Mortgage Recording Tax
UCC filing and lien search instead of title insurance
Building application and move-in fees
Mansion tax
Buyer-paid additional tax on residential purchases of $1,000,000+ with a graduated schedule that ranges from 1.00% to 3.90% as price rises.
New development note
Sponsors often shift NYC and NYS transfer taxes to the buyer in offering plans, along with sponsor attorney and start-up building fees. Confirm in writing via the sponsor cost rider.
Seller closing costs: the core list
NYC Real Property Transfer Tax: 1.00% up to $500,000 and 1.425% above $500,000 for residential sales.
New York State transfer tax: 0.40% in general, rising to 0.65% at $3,000,000+ for residential property.
Broker commission
Attorney fee
Building fees: move-out, resale package, payoff document charges
Flip tax if applicable
Payoff items: mortgage payoff, UCC termination, recording and wire fees
FIRPTA withholding for foreign sellers where applicable
Frequently Asked Questions
Do co-ops pay Mortgage Recording Tax
No. That tax records a mortgage on real property. Co-ops are shares in a corporation, so no Mortgage Recording Tax.
Who pays transfer taxes in a new development
Often the buyer, as set in the offering plan. It is a negotiable point in some markets.
What are the current NYC seller transfer tax rates
For residential: 1.00% at $500,000 and below, 1.425% above $500,000.
What is the current NYS transfer tax
0.40% in general, rising to 0.65% at $3,000,000+ residential.
What is the current mansion tax schedule
Graduated 1.00% to 3.90% based on price. The state statute and 2019 update outline the brackets.
Five checks before you sign
- Who pays which taxes and fees on this deal
- Where the price sits relative to mansion tax brackets
- Building costs: application, move-in, working capital, flip tax
- Lender cash needs at closing in a financed purchase
- Net number after all costs, not just price and rate
Have questions? Count on us to help you through the process.
