When purchasing any property in New York, both buyers and sellers will be subject to different closing costs, depending on the property type and whether there is financing involved.
A buyer should expect to pay closing costs for both the real estate transaction itself and closing costs to the lender that is involved in financing the property. Typical closing costs for the buyer can range anywhere from 1.5 to 6% of the purchase price of the property.
As a buyer, you should be aware of all closing costs you will ultimately be responsible for. An online closing cost estimator can help you get an idea of what to expect throughout the transaction. To discuss closing costs you may expect during your unique transaction, contact top rated NYC real estate attorney Natalia Sishodia today.
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Disclaimer: Sishodia PLLC's NYC Seller Closing Cost Calculator provides estimates that are meant to be illustrative and used for reference purposes only. Exact closing costs in NYC will vary per transaction. Please consult the closing statement your real estate attorney will provide you for your exact closing costs.
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As a buyer, depending on the property you are purchasing and whether there is financing involved, you can expect to pay:
If you are purchasing property for $1 million or more in New York, you will be responsible for paying a mansion tax on that property. Depending on the purchase price, this can range from 1% of the purchase price to 3.9% for properties with prices of $25 million or more.
Title insurance covers a buyer or lender from issues that may arise with the legal title of the property. While an owner’s policy is not mandatory in New York, it is usually suggested.
In any real estate purchase other than a co-op, the transaction document, or deed, will be filed with the county records. The same is true for a mortgage document. Recording in the public records carries a recording fee for each document.
Mortgage financing on single-family, multi-family, and condo properties in New York City are subject to a mortgage recording tax. A buyer can expect to pay 1.8% on mortgages under $500,000 and 1.925% on any mortgage over $500,000. New York state imposes a mortgage tax of 0.5% of the mortgage amount. Co-ops are not subject to these taxes.
When a property transaction includes mortgage financing, there are various fees that will be imposed by the lender and will vary depending upon which lender you are using. These will typically include:
If you are purchasing a co-op or condo, they will impose their own closing and application fees.
Co-ops are not regarded as “real property” in New York. Instead of purchasing a unit in a building like a condo, you are becoming part of a cooperative group of investors in a building that is owned by the corporate whole of the people who live there. Consequently, others who live there will take a great stake in who they accept as another shareholder and how that buyer will fit in. Although still subject to the New York mansion tax, closing costs in a co-op transaction are unlike other real estate transactions and will vary from co-op to co-op. They typically include:
Condos are considered real property in New York, but buyers are also subject to board approval and the costs associated with maintaining the common areas of the building itself. Consequently, the board will impose various criteria when approving a new buyer and fees that come with that approval process.
While New York City and New York State transfer taxes are typically paid by the seller, these are usually passed on to the buyers in the case of new developments. The New York City transfer tax is 1% of the purchase price up to $500,000 and 1.425% on anything priced over $500,000. New York state transfer taxes are $4.00 per $1 million of the purchase price, or .04%.
What Our Clients Say:
This was actually my first purchase in NYC and I couldn’t have done it without the help of Natalia who guided me through every step of the way. She was always thoughtful and kept things light hearted even when things got to be stressful as home buying can be. She was happy to explain things so that I could be knowledgeable myself and was always looking out for my best interest. I’m looking forward to working with her on my future projects as I feel very lucky to have found her. Truly kind and I would like to recommend her services to anyone reading this.
I contacted Sishodia PLC about a commercial real estate deal that I’ve been trying to close. The lawyers here were very friendly and responded to my questions quickly. Ms. Sishodia gave me really sound advice. I would not hesitate to contact her again if I need help with my commercial real estate again. Thank you guys!
Ms. Sishodia is a first rate attorney. Her work was timely and flawless. She was extremely helpful and patient when opposing counsel was hi u clearly not up to the task at hand. Her knowledge of the relevant legal issues reflected a thorough understanding and vast experience. She also had real, financial sophistication which made her even more effective. An outstanding attorney who provided great value in every way.
I worked with Natalia as the buyers agent and was blown away with how attentive and professional she was throughout the process. She helped the deal stay on track even with a challenging seller and I plan to recommend her to more clients in the future.
Shawn (Long Island City Real Estate)
Natalia is a gem. Not only is she incredibly responsive, but also knowledgeable, accountable and incredibly professional.
I worked with her on the sale of my Manhattan apartment – she helped me navigate all the questions and confusion and truly was a partner to me!
I’d recommend her for any of your real estate legal needs.
Natalia was a pleasure to work with and that is saying something since she was on the opposite side of the transaction from my client. Very professional and responsive. A deal maker rather than a deal breaker.
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Whether you are a buyer or seller, real estate transactions in New York City can be complicated. The experienced New York real estate attorneys at Sishodia PLLC will skillfully navigate your real estate transaction from contract to closing.
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