Closing Costs: Brief Overview

What are closing costs?

Very simply, closing costs are the costs paid at the time of closing a home, hence the term “closing costs”.

Today we will be going over a brief overview about closing costs related to the sale or purchase of a condominium, cooperative, or townhouse. All information and figures provided are only a general estimation. The information provided is not a representation of the actual closing costs a home buyer will incur. Please consult a financial specialist for your specific questions and needs.

What do closing costs Include?

I. Closing costs apply to all purchases:

Fees for:

  • Title Search
  • Title Insurance
  • Record Deed & Condo POA
  • Your Attorney

This is typically less than 1% of the Purchase Price.

(Note: Title Insurance Premiums are regulated by State Law Estimation of Closing Costs)

II. Additional Closing Costs, if Financing will include:

Fees for:

  • Bank
  • Title Insurance for Lender
  • Record Mortgage
  • NYC Mortgage Tax

This is approximately 2% of the Purchase Price.

(Note: NYC Mortgage Tax = 1.8% of the loan amount, if loan is less than $500K. Tax increases to 1.925%, if loan is $500K or more.)

III. Additional Fees, If New Construction or Sponsor Sale:

Fees for:

  • NYS & NYC Transfer Taxes
  • Working Capital or Reserve Fund Contribution
  • Sponsor's Attorney
  • Tax Abatement Reimbursement
  • Resident Manager's Unit
  • etc.

Ranges from 2% to 3% of Purchase Price

(Note: These fees are generally negotiable! It can’t hurt to ask!)

The summary of closing costs have been kindly prepared by Chu Law Firm PLLC for Discussion Purposes Only. Always consult an attorney for an accurate summary of your closing costs.