NYC Condo Closing Costs Explained
Condominiums are common real property. The title to the property is transferred from one owner to the next by the use of a document known as The Deed. The title must be “Marketable” meaning free of any leans or judgments and requires to be insured by a title company to protect against unknown encumbrances.
Typical Condominium or Townhouse closing costs are as follows:
- Buyer’s Attorney: $1650
- Management Fee: $250
- Credit Check: $100
- If using a Mortgage add:
- Application Fee: $650
- Appraisal fee: $375-750 depending on property size and value
- Bank’s Attorney: $750
- Recording Fees: $430
- Title Search: $300
Title Insurance: approximately 0.5% of the purchase price
NY City and State Mortgage Recording Tax: just under 2% of the loan amount
This estimate is the bulk of costs you can anticipate when purchasing a condominium in NYC.
NOTE: any property sold in the city of NY over $1 million dollars is subject to 1% Mansion Tax. Be sure to factor it into your budget if your purchase price exceeds $1 million. Additionally any discount points you CHOOSE to pay your lender in effort to reduce your effective borrowing rate will add to the overall expense.
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