Navigating NYC Closing Costs: A Comprehensive Guide
Dollar amounts are common reference figures from NYC brokerage experience; actual costs vary by property, lender, and negotiated terms.
New developments offer the allure of modern amenities and pristine condition. However, along with the shiny facade comes a set of closing costs that buyers must factor into their budget.
Loan Origination Charge
Amount: Varies — confirm with your lender or attorney
This fee covers the administrative costs associated with processing your loan application.
Appraisal Fee
Amount: Varies — confirm with your lender or attorney
Before approving a mortgage, lenders typically require an appraisal to assess the property's market value.
Credit Report Fee
Amount: Varies — confirm with your lender or attorney
Lenders pull your credit report to evaluate your creditworthiness, and this fee covers the cost of obtaining it.
Departmental Searches
Amount: Varies — confirm with your lender or attorney
Various searches are conducted to ensure there are no outstanding issues or violations related to the property.
Filing Fees
Amount: Varies — confirm with your lender or attorney
These fees cover the cost of filing paperwork with relevant government agencies.
Bank Attorney Fee
Amount: Varies — confirm with your lender or attorney
The bank's attorney oversees the legal aspects of the mortgage process on behalf of the lender.
Title/Lien Search Fee
Amount: Varies — confirm with your lender or attorney
This fee is for conducting searches to confirm the property's ownership history and ensure there are no liens or encumbrances.
Recording Mortgage Fee
Amount: Varies — confirm with your lender or attorney
This fee covers the cost of recording the mortgage with the appropriate government office.
NYC Mansion Tax
1% for purchases of $1,000,000 to $1,999,999
1.25% for purchase of $2,000,000 to $2,999,999
1.5% for purchases of $3,000,000 to $4,999,999
2.25% for purchases of $5,000,000 to $9,999,999
3.25% for purchases of $10,000,000 to $14,999,999
3.5% for purchases of $15,000,000 to $19,999,999
3.75% for purchases of $20,000,000 to $24,999,999
3.90% for purchases of $25,000,000 and above
Mortgage Tax
Amount: Varies — confirm with your lender or attorney
This tax is levied by the state or local government on mortgages secured by real property.
Deed Recording and Gratuity
Amount: Varies — confirm with your lender or attorney
This fee covers the cost of recording the property deed.
Title Insurance
Amount: Typically about $4 per $1,000 of purchase price — i.e. (Purchase Price / 1000) × 4; confirm with your title company
Title insurance protects the buyer and lender against any defects in the title that may arise after the purchase.
First Year HO-6 Insurance Premium
Amount: Varies — confirm with your lender or attorney
HO-6 insurance provides coverage for condominium owners, including protection for personal property and liability.
Working Capital Contribution
Amount: 1-3 months of common charges
Some new developments require buyers to contribute to the building's working capital fund to cover ongoing expenses.
NYC Real Property Transfer Tax
Amount: Varies — confirm with your lender or attorney
When purchasing a sponsor unit in New York City, buyers may be subject to a transfer tax.
NYS Real Property Transfer Tax
Amount: Varies — confirm with your lender or attorney
This is the transfer tax levied by the state of New York on sponsor unit purchases.
Buyer's Attorney
Amount: Varies — confirm with your lender or attorney
Hiring a lawyer to represent your interests throughout the closing process is essential.
Seller's (Sponsor's) Attorney
Amount: Varies — confirm with your lender or attorney
In the case of a sponsor sale, the sponsor may have their attorney, whose fee is typically borne by the buyer.
One Month's Common Charges
Amount: Equal to one month of CC's
This covers the buyer's portion of common charges for the first month of ownership, often prorated.
Daily Interest Charges
Interest charges may accrue from the closing date to the end of the month, depending on the timing of the transaction.
Resale condos, while not brand new, still come with their own set of closing costs. Let's explore what buyers can expect.
Loan Origination Charge
Amount: Varies — confirm with your lender or attorney
This fee covers the administrative costs associated with processing your loan application.
Appraisal Fee
Amount: Varies — confirm with your lender or attorney
Before approving a mortgage, lenders typically require an appraisal to assess the property's market value.
Credit Report Fee
Amount: Varies — confirm with your lender or attorney
Lenders pull your credit report to evaluate your creditworthiness, and this fee covers the cost of obtaining it.
Condo Application Application Fee
Amount: Varies — confirm with your lender or attorney
Condo Processing Fee/Credit Report
Amount: Varies — confirm with your lender or attorney
Bank Attorney Fee
Amount: Varies — confirm with your lender or attorney
The bank's attorney oversees the legal aspects of the mortgage process on behalf of the lender.
Title/Lien Search Fee
Amount: Varies — confirm with your lender or attorney
This fee is for conducting searches to confirm the property's ownership history and ensure there are no liens or encumbrances.
Recording Mortgage Fee
Amount: Varies — confirm with your lender or attorney
This fee covers the cost of recording the mortgage with the appropriate government office.
Mortgage Tax
Amount: Varies — confirm with your lender or attorney
This tax is levied by the state or local government on mortgages secured by real property.
NYC Mansion Tax
1% for purchases of $1,000,000 to $1,999,999
1.25% for purchase of $2,000,000 to $2,999,999
1.5% for purchases of $3,000,000 to $4,999,999
2.25% for purchases of $5,000,000 to $9,999,999
3.25% for purchases of $10,000,000 to $14,999,999
3.5% for purchases of $15,000,000 to $19,999,999
3.75% for purchases of $20,000,000 to $24,999,999
3.90% for purchases of $25,000,000 and above
Courier, Messenger Fee
Amount: Varies — confirm with your lender or attorney
Title Insurance
Amount: Typically about $4 per $1,000 of purchase price — i.e. (Purchase Price / 1000) × 4; confirm with your title company
Title insurance protects the buyer and lender against any defects in the title that may arise after the purchase.
First Year HO-6 Insurance Premium
Amount: Varies — confirm with your lender or attorney
HO-6 insurance provides coverage for condominium owners, including protection for personal property and liability.
Buyer's Attorney
Amount: Varies — confirm with your lender or attorney
Hiring a lawyer to represent your interests throughout the closing process is essential.
Co-op apartments have a unique set of closing costs compared to condos. Let's break them down.
Loan Origination Charge
Amount: Varies — confirm with your lender or attorney
This fee covers the administrative costs associated with processing your loan application.
Appraisal Fee
Amount: Varies — confirm with your lender or attorney
Before approving a mortgage, lenders typically require an appraisal to assess the property's market value.
Credit Report Fee
Amount: Varies — confirm with your lender or attorney
Lenders pull your credit report to evaluate your creditworthiness, and this fee covers the cost of obtaining it.
Condo Application Application Fee
Amount: Varies — confirm with your lender or attorney
Condo Processing Fee/Credit Report
Amount: Varies — confirm with your lender or attorney
Bank Attorney Fee
Amount: Varies — confirm with your lender or attorney
The bank's attorney oversees the legal aspects of the mortgage process on behalf of the lender.
Title/Lien Search Fee
Amount: Varies — confirm with your lender or attorney
This fee is for conducting searches to confirm the property's ownership history and ensure there are no liens or encumbrances.
Recording Mortgage Fee
Amount: Varies — confirm with your lender or attorney
This fee covers the cost of recording the mortgage with the appropriate government office.
Mortgage Tax
Amount: Varies — confirm with your lender or attorney
This tax is levied by the state or local government on mortgages secured by real property.
NYC Mansion Tax
1% for purchases of $1,000,000 to $1,999,999
1.25% for purchase of $2,000,000 to $2,999,999
1.5% for purchases of $3,000,000 to $4,999,999
2.25% for purchases of $5,000,000 to $9,999,999
3.25% for purchases of $10,000,000 to $14,999,999
3.5% for purchases of $15,000,000 to $19,999,999
3.75% for purchases of $20,000,000 to $24,999,999
3.90% for purchases of $25,000,000 and above
Courier, Messenger Fee
Amount: Varies — confirm with your lender or attorney
Title Insurance
Amount: Typically about $4 per $1,000 of purchase price — i.e. (Purchase Price / 1000) × 4; confirm with your title company
Title insurance protects the buyer and lender against any defects in the title that may arise after the purchase.
First Year HO-6 Insurance Premium
Amount: Varies — confirm with your lender or attorney
HO-6 insurance provides coverage for condominium owners, including protection for personal property and liability.
Buyer's Attorney
Amount: Varies — confirm with your lender or attorney
Hiring a lawyer to represent your interests throughout the closing process is essential.
Understanding closing costs is essential for any prospective homebuyer. Whether you're purchasing a new development, resale condo, or co-op, being aware of these expenses upfront can help you budget effectively and avoid any surprises at the closing table. It's also wise to work closely with your real estate agent and attorney to ensure you have a clear understanding of all the costs involved in your property purchase. By doing so, you can navigate the closing process with confidence and ease.
Use this calculator to ballpark New York City buyer closing costs or seller net proceeds before you meet with your attorney and lender.
Choose condo, co-op, or new development, then adjust price, loan, and tax inputs. Figures are estimates for orientation only—transfer taxes, mansion tax, and lender fees can vary by property and deal structure.
Rates as of 2026-08-07
Estimates only, prepared for discussion. All figures are from sources deemed reliable but are subject to errors, omissions, and change without notice. This is not legal, tax, or accounting advice — consult your attorney and your accountant. Actual costs and proceeds are determined at closing by the parties, their counsel, the lender, the managing agent, and the title company.