NYC Closing Costs for Buyers: Every Fee Explained
Every NYC buyer closing cost, condo vs co-op: mansion tax, mortgage recording tax, title, attorney, lender fees and adjustments, with an embedded calculator.
7 min read · Updated
Buyers in New York City usually pay two government taxes at closing, the mansion tax (1% or more on purchases of $1 million and up) and the mortgage recording tax (usually 1.8% or 1.925% of a condo or house loan), plus title insurance, attorney, lender and building fees. Co-op buyers skip both the mortgage recording tax and most title insurance, so a co-op usually costs less to close on than a condo at the same price.
The two taxes are fixed by law, and the rest vary by lender, building and attorney. Below, each line is explained with who charges it and how it’s calculated. Start with an estimate:
NYC closing cost calculator
Open full calculator →The calculator’s attorney, title, lender and co-op fee lines are rough placeholders. Replace them with the quotes and Loan Estimate you actually receive. The tax lines follow the official rates below.
At a glance
- Mansion tax
- 1%–3.9%
- Buyer pays, homes of $1M+
- Mortgage recording tax
- 1.8% or 1.925%
- Usual borrower share on a condo or house loan; 0 on co-ops
- NYC/NYS transfer taxes
- Seller
- Unless your contract shifts them to you
- When you see final numbers
- 3 business days
- Closing Disclosure arrives before closing
Every buyer closing cost, condo vs co-op
| Cost | Who charges it | Condo / house | Co-op |
|---|---|---|---|
| Mansion tax | NYS (Tax Law §1402-a, -b) | 1% at $1M+, up to 3.9% in NYC | Same |
| Mortgage recording tax | NYC + NYS | Usually 1.8% (<$500K) or 1.925% ($500K+) of the loan | None |
| Title insurance (lender’s policy) | Title insurer | Required by most lenders | Not used; lien search instead |
| Title insurance (owner’s policy) | Title insurer | Optional, recommended | Not used |
| Co-op lien and UCC search | Title or search company | — | Yes |
| Buyer’s attorney | Your attorney | Usually a flat fee | Usually a flat fee |
| Lender fees, appraisal, credit report | Your lender | Per Loan Estimate | Per Loan Estimate |
| Lender’s attorney or bank attorney fee | Lender | If charged; see Loan Estimate | If charged; see Loan Estimate |
| Deed and mortgage recording fees | City Register | Yes | No deed or mortgage; lender files a UCC financing statement |
| Board application and move-in fees | Building / managing agent | Some condos | Yes |
| Prepaid interest, escrow deposits | Lender | Per Loan Estimate | Per Loan Estimate |
| Tax, common charge or maintenance adjustments | Settled with seller | Yes | Yes |
| Seller’s transfer taxes (sponsor sales) | Contract term | Only if the contract says so | Only if the contract says so |
The government taxes
Mansion tax
If you pay $1 million or more for a house, condo or co-op, you owe 1% of the whole price. In NYC a supplemental tax raises the combined rate from 1.25% at $2 million to 3.9% at $25 million. The buyer pays it. A $1,200,000 apartment costs $12,000 in mansion tax; a $2,000,000 one costs $25,000. Full brackets and the $1 million cliff are in NYC mansion tax.
Mortgage recording tax
The tax is charged on the loan amount, not the price: 2.05% of a loan under $500,000 or 2.175% at $500,000 or more on a house of one to three families or a condo. On property with six or fewer dwelling units the lender must pay the 0.25% special additional tax, usually leaving you 1.8% or 1.925% (on a one- or two-family house, the first $10,000 of the loan is also exempt from the 0.3% MTA portion). Co-op loans are secured by shares, not a recorded mortgage, so DOF says they owe nothing. A CEMA can cut the tax when an existing mortgage is assigned to your lender. Details in NYC mortgage recording tax.
Transfer taxes (usually the seller’s)
The NYC RPTT and the NYS transfer tax are the seller’s by law. A contract can shift them to you, for example in a new-development sponsor contract. Read it before you sign. If you agree to pay them, add 1.4% to 2.075% of the price on a residential purchase. See NYC and NYS transfer taxes.
Title insurance and searches
The CFPB explains that most lenders require a lender’s policy, which protects the lender’s loan, while an owner’s policy is optional and protects you against claims from before your purchase, such as unpaid taxes or contractor liens. In New York, title rates are set through the Title Insurance Rate Service Association (TIRSA), which works under the supervision of the Department of Financial Services. Premiums scale with the price and loan amount; ask your attorney for a title bill estimate early.
Co-op buyers don’t get title insurance on the apartment. Instead, a lien search checks the seller’s shares for UCC filings, judgments and liens. See title insurance explained.
Attorney and lender costs
Your real estate attorney negotiates the contract and handles the closing. Attorneys set their own fees, often as a flat fee. Get the fee and what it covers in writing. Your lender’s fees, appraisal, credit report and any points appear on page 2 of your Loan Estimate. Some lenders also charge a bank attorney fee. Compare at least two Loan Estimates; see how to read your Loan Estimate and Closing Disclosure.
Building fees and adjustments
- Co-op and condo building fees. Co-ops charge board application, credit check and move-in fees, and some require a refundable move-in deposit. Some condos charge application fees too. Ask the managing agent for the fee schedule before you sign.
- Adjustments. If the seller prepaid property taxes, common charges or maintenance past the closing date, you reimburse them; if they owe for days before closing, you get a credit. These appear in the “Adjustments” sections of the Closing Disclosure.
- Prepaids and escrow. Your lender collects interest from closing to the end of the month and may fund an escrow account for property taxes and insurance.
- Flip tax. A co-op flip tax is set by the building, and the building’s rules and your contract decide who pays it; see co-op flip tax.
Taxes only: condo vs co-op at the same price
| Purchase | Loan | Mansion tax | Your recording tax | Total taxes |
|---|---|---|---|---|
| $800,000 condo | $640,000 | $0 | $12,320 | $12,320 |
| $800,000 co-op | $640,000 | $0 | $0 | $0 |
| $1,200,000 condo | $960,000 | $12,000 | $18,480 | $30,480 |
| $1,200,000 co-op | $960,000 | $12,000 | $0 | $12,000 |
Closing cost checklist
Before closing day
0/10Re-checked 2026-10-12. Mansion (1%) and NYC supplemental brackets (0.25%-2.9%, buyer pays) against TP-584-NYC-I (8/25) and DTF transfer tax page. MRT rates (2.05% / 2.175%; 1-3 family, condo, vacant land = residential) and co-op exclusion against the DOF CY2024 MRT profile; lender-paid 0.25% (6 or fewer units; not imposed when the lender is a natural person or credit union) and the $10,000 MTA exclusion for 1-2 family homes against Tax Law §253. RPTT 1%/1.425% and NYS 0.4%/0.65% against DOF and DTF. Title policy roles from CFPB; TIRSA licensed by DFS (tirsa.org). Closing Disclosure 3 business days from CFPB. HomeFirst closing-cost use from the 05.11.2026 term sheet. Tax table math recomputed. Attorney, lender and building fees vary and are given without dollar figures.
Sources
- Real estate transfer tax (incl. mansion tax) · NYS Department of Taxation and Finance (accessed October 12, 2026)
- Instructions for Form TP-584-NYC (8/25) · NYS Department of Taxation and Finance (accessed October 12, 2026)
- Statistical Profile of the NYC Mortgage Recording Tax, Calendar Year 2024 · NYC Department of Finance (accessed October 12, 2026)
- NY Tax Law §253: Recording tax · New York State Senate (accessed October 12, 2026)
- Real Property Transfer Tax (RPTT) · NYC Department of Finance (accessed October 12, 2026)
- What is owner’s title insurance? · Consumer Financial Protection Bureau (accessed October 12, 2026)
- Title Insurance Rate Service Association (TIRSA) · TIRSA (accessed October 12, 2026)
- Closing Disclosure explainer · Consumer Financial Protection Bureau (accessed October 12, 2026)
- Loan Estimate model form (H-24) · Consumer Financial Protection Bureau (accessed October 12, 2026)
- HomeFirst Down Payment Assistance Program Term Sheet · NYC HPD (accessed October 12, 2026)
General information, not legal, tax or financial advice. Rules change; confirm with the agency or a professional before you act.