Closing Costs for NYC Condo and Co-op Buyers and Sellers

Last updated: Tax rates, thresholds and rules last reviewed on November 14, 2026.

New York closing costs are higher than in most of the country, and they differ between condos and co-ops. Use this page to know what to ask about; use your attorney’s closing statement for the actual numbers. For a rough total, our mortgage calculator lets you enter your own closing-cost estimate.

Brokerage fees: who pays depends on the agreements

In New York City, both buyers and sellers may pay a broker’s fee. There is no standard arrangement, and every listing can be structured differently. Brokerage commissions are not set by law and are fully negotiable; the amount and who pays it are set by written agreements.

• Sellers agree to a commission when they hire a listing broker. The listing agreement sets the amount and whether the seller will also pay the buyer’s broker.
• Buyers who work with their own broker sign a separate written agreement with that broker. Depending on the listing, the seller may pay the buyer’s broker, the buyer may pay part of the fee, or the buyer may pay all of it. The amount is whatever the buyer and their broker agree to.
• Before you make an offer, ask what the seller is offering toward your broker’s fee, and compare it with what your own agreement says you owe.

Buying a condominium: costs that commonly apply

• Your broker’s fee, if your buyer agreement says you pay some or all of it (see Brokerage fees).
• Buyer’s attorney fee.
• Lender fees if you finance: application, appraisal, credit report, underwriting and any points.
• Mortgage recording tax, if you take a mortgage. It is charged on the loan amount.
• Title insurance (owner’s and, if financed, lender’s policy) and title-related charges such as searches and recording fees.
• “Mansion tax”: a New York State tax paid by the buyer on residential purchases of $1 million or more. In New York City the rate increases at higher price levels.
• Building fees: condo board application, move-in fees and deposits.
• Adjustments at closing for common charges and real estate taxes already paid by the seller, and any escrow your lender requires for taxes and insurance.

Buying a co-op: costs that commonly apply

• Your broker’s fee, if your buyer agreement says you pay some or all of it (see Brokerage fees).
• Buyer’s attorney fee.
• Lender fees if you finance, including a recognition agreement fee. Co-op loans are secured by shares, not by a recorded mortgage, so mortgage recording tax and title insurance generally do not apply.
• Lien search.
• “Mansion tax”: also applies to co-op purchases of $1 million or more.
• Board package costs: application, credit and background check fees.
• Building fees: move-in fees and deposits, and any fees the managing agent charges.
• Adjustment at closing for maintenance already paid by the seller.
• In some buildings, a flip tax. It is usually paid by the seller, but the building’s rules or the contract can say otherwise.

New developments and sponsor sales

When you buy directly from a sponsor or developer, the contract typically shifts costs to the buyer that a seller would normally pay. These often include the New York City and New York State transfer taxes and the sponsor’s attorney fees. Many buildings also charge a working capital contribution, and some require upfront common charges or tax adjustments. Closing costs on a sponsor purchase are usually noticeably higher than on a resale. Read the offering plan and contract with your attorney.

Selling: costs that commonly apply

• Brokerage commission: the amount in your listing agreement, which may also cover the buyer’s broker. It is negotiable (see Brokerage fees).
• Seller’s attorney fee.
• New York City Real Property Transfer Tax and New York State transfer tax, normally paid by the seller (except in sponsor sales, see above).
• Flip tax, if the building has one, and managing agent or transfer fees.
• Mortgage payoff and any related bank fees.
• Move-out deposits required by the building.
• Income taxes on any gain: federal, state and, for residents, city. Ask your CPA.
• Foreign sellers (FIRPTA). If the seller is a foreign person for U.S. tax purposes, federal law generally requires a portion of the sale price to be withheld at closing and sent to the IRS. New York State has its own estimated tax requirements for non-resident sellers. Plan this with your CPA well before closing.

Situations that change the numbers

Any of these can change which taxes apply, how they are calculated or who pays them. Ask your attorney and CPA about your specific case.

• Buying from a sponsor or developer.
• Buying more than one unit in the same building, or units that will be combined. Related purchases may be added together or taxed differently.
• Buying or selling through an LLC, trust or other entity, or transferring a partial interest.
• Foreign buyers or sellers, and sellers who are not New York residents.
• Paying all cash, or assuming or modifying an existing mortgage.
• A 1031 exchange or other tax-deferred structure.
• Buildings with tax exemptions or abatements that expire or phase out over time (for example 421-a or J-51). Your attorney should confirm what the taxes will be after they end.

Real estate taxes after you buy: primary residence or investment

The real estate taxes shown for a condo or co-op reflect the current owner’s situation. New York City’s Co-op and Condo Property Tax Abatement (opens in a new tab) reduces taxes only for units that are the owner’s primary residence, subject to the Department of Finance’s eligibility rules. It does not apply to units that are rented out or are not the owner’s primary residence. The abatement is set up through the building’s board or managing agent and takes effect for a future tax year, not on the closing date.

• If you will live in the home: you may qualify for the abatement. If the seller did not receive it, for example because the unit was rented out, your taxes could go down in a later tax year once you qualify. Until then, budget for the taxes as they are.
• If you are buying as an investment: budget for taxes without the abatement. If the seller lived in the unit and received it, expect your taxes to go up once it is removed.

Ask the managing agent whether the unit currently receives the abatement and what the taxes are without it, and confirm your eligibility with your attorney.

Official sources

• NYC Department of Finance: Co-op and Condo Property Tax Abatement (opens in a new tab)
• NYC Department of Finance: Real Property Transfer Tax (opens in a new tab)
• New York State Department of Taxation and Finance: real estate transfer tax and mansion tax (opens in a new tab)
• IRS: FIRPTA withholding (opens in a new tab)