Who Pays What at a NYC Closing: Buyer vs Seller

In a typical NYC sale, the seller pays the broker commission, the NYS and NYC transfer taxes and any co-op flip tax, while the buyer pays the mansion tax, mortgage costs (including mortgage recording tax on condos and houses) and title insurance. Sponsor sales of new condos are the big exception: the offering plan can shift the seller's transfer taxes and other costs to you.

Some of these splits are set by law and some are only custom. The table below shows both, side by side, for a co-op resale, a condo resale, a sponsor (new development) condo and a house.

The side-by-side table

"Law" means a statute says who owes it. "Custom" means it is common NYC practice that the contract can change. Rates are the published rates as of October 2026.

Transfer taxes: the seller owes them, but a contract can move them

New York State charges a base transfer tax of $2 for every $500 of price (0.4%). In NYC, residential sales of $3 million or more owe an additional $1.25 per $500 (0.25% more). The state tax department says these are paid by the seller and cannot be paid by the buyer "except as provided in a contract" between them. If the seller fails to pay or is exempt, the buyer must pay.

The city's Real Property Transfer Tax (RPTT) is 1% of the price for residential sales of $500,000 or less and 1.425% above that, and it applies to co-op share transfers as well as deeds. The Department of Finance says the seller is normally liable; if the seller is exempt or does not pay, the buyer is. Both parties sign the return. Details are in NYC and NYS transfer taxes explained.

Mansion tax: the buyer owes it

On residential purchases of $1 million or more, the buyer pays a 1% "mansion tax" on the whole price. In NYC, purchases of $2 million or more also owe a supplemental tax that rises from 0.25% to 2.9% depending on price. If the buyer does not pay or is exempt, the seller must. It applies to co-ops, condos and houses alike. Use the mansion tax calculator or read NYC mansion tax rates and brackets.

Mortgage recording tax: buyers with a condo or house loan

The city and state together charge 2.05% on residential mortgages under $500,000 and 2.175% on mortgages of $500,000 or more. On property with no more than six homes, state law makes the lender pay 0.25% of that, so the borrower usually pays 1.8% or 1.925%. On one- and two-family homes the first $10,000 of the loan is exempt from the state's 0.3% MTA portion, a saving of about $30 that the examples below ignore. The Department of Finance says loans on individual co-op apartments do not incur mortgage recording tax at all, which is one reason co-op closing costs are lower for buyers. See NYC mortgage recording tax and CEMA loans.

Title insurance vs a co-op lien search

When you buy a condo or house you receive a deed, so title insurance applies. The NYS Department of Financial Services says the buyer is generally responsible for paying for both the owner's and lender's policies. A co-op buyer gets shares and a proprietary lease instead of a deed, so the closing typically uses a lien search on the shares rather than title insurance. See title insurance explained.

Sponsor sales: read the closing-cost section of the plan

A sponsor (the developer) selling new condo units must file an offering plan with the New York Attorney General. The Attorney General's rules require the plan to list every estimated closing cost and say whether the buyer or sponsor pays it. If the sponsor makes the buyer pay a cost that the law puts on the seller, such as transfer taxes, the plan must flag it as a "special risk" and disclose that a statutory seller obligation is being shifted. The plan must also say whether the buyer pays any part of the sponsor's or lender's attorney fees, and give a numerical example of all closing costs for a typical unit.

Because the sponsor is the seller, transfer taxes paid by a sponsor buyer are on top of the buyer's own mansion tax and mortgage recording tax. On a $2 million unit that can be tens of thousands of dollars. Get the plan's closing-cost example before you sign and ask whether any item is negotiable. More in buying a new development condo and what an offering plan is.

Commissions after the NAR settlement

Commissions are not set by law and are fully negotiable. Since August 17, 2024, offers of compensation to buyer brokers can no longer be posted on a multiple listing service, and agents who belong to an MLS must have a written agreement with a buyer before touring a home. In NYC, sellers have customarily paid the listing broker, and sellers can still agree to pay the buyer's broker, but that is a term to negotiate. See real estate commissions after the NAR settlement and buyer broker agreements.

Co-op-only costs

• Flip tax. A fee to the co-op corporation set by the building's own documents. It is usually paid by the seller, but check the proprietary lease or bylaws and the contract. See co-op flip tax and the flip tax calculator.
• Board and managing agent fees. Buyers usually pay application, credit check and move-in fees; sellers often pay a transfer or processing fee and move-out costs. Amounts are set by each building.
• Recognition agreement and co-op loan fees. If the buyer finances, the lender, co-op and buyer sign a recognition agreement. See co-op share loans vs mortgages.

Adjustments: who pays for the month you close in

Recurring charges are split by date. If the seller has prepaid the month's maintenance, common charges or property tax, the buyer reimburses the seller for the days after closing. If the bill is unpaid, the seller credits the buyer. Water and sewer charges on houses are usually adjusted on a final meter reading. These are not fees, just a fair split of costs that span the closing date.

A worked comparison

On the same price, the condo buyer pays $18,480 more in tax because of the mortgage recording tax. The seller's taxes are identical. In a sponsor sale where the plan shifts transfer taxes to the buyer, the buyer would also pay the $21,900 of seller taxes shown above. Model your own numbers with the NYC closing cost calculator (buyers) and the seller net proceeds calculator.

What you can negotiate

• Commission rates and whether the seller contributes to the buyer's broker.
• Whether a sponsor will absorb its own transfer taxes or attorney fee, especially in a slower market.
• Seller concessions toward closing costs, within your lender's limits. See the seller concessions calculator.
• Who pays a flip tax, if the building documents allow either side to pay.

What you generally cannot negotiate away is the government's right to collect: if the party who agreed to pay a transfer tax does not, the other side can be held liable. Your attorney should make sure every tax is paid at the closing table.