Every fee a buyer pays at closing on a co-op, a condo, or a new development, with the real dollar amounts and the five that are actually negotiable
A buyer with a $1.2 million pre-approval doesn't actually have $1.2 million to spend on an apartment. Closing costs in NYC consume $42,000 to $51,000 on a financed condo purchase at that level, which means the real buying power is closer to $1.15 million. The exact number depends almost entirely on property type. A co-op runs about 2% of the purchase price, roughly $20,000 to $30,000 on $1M, because there's no title insurance or mortgage recording tax on a stock purchase. A condo runs closer to 4%, $38,000 to $42,000 on $1M. A new development runs 6% or more, $60,000-plus, because sponsors shift transfer taxes and reserve fund contributions onto the buyer. In my 25+ years in NYC real estate, the buyers who get blindsided almost always budgeted off the purchase price alone.
Before signing a contract, run a free ACRIS property records search to confirm there are no outstanding liens that will affect your closing costs. Our pre-approval and budgeting strategy guide shows where closing costs fit in your total budget.
A co-op purchase is shares of stock in a corporation. A condo purchase is real property. That difference triggers different taxes, insurance requirements and fees.
$20,000 to $30,000 on a $1M purchase
$38,000 to $42,000 on a $1M purchase
$60,000+ on a $1M purchase
Our co-op vs. condo guide covers maintenance fees, board application requirements and resale. For what co-op buyers pay in place of the taxes they skip, see co-op closing costs for NYC buyers.
The calculator itemizes buyer-side taxes using the 2026 schedules: the mansion tax brackets (1% to 3.9% on $1M+), the mortgage recording tax (1.8% on loans under $500K, 1.925% at $500K and above, never charged on co-op share loans), and the NYC and NY State transfer taxes that sponsors often shift to buyers in new developments. Full rate tables live in my NYC property tax guide.
Itemized estimate for co-op, condo, and new development purchases. Updates as you type.
| Cost item | Estimate | Notes |
|---|---|---|
| Mansion tax | ||
| Mortgage recording tax | ||
| NYC + NY State transfer taxes | ||
| Title insurance | ||
| Buyer attorney fee | ||
| Estimated total | Before the variable items below |
Not included because they vary by deal: lender fees and points, building or managing agent application fees, recording fees, and the working capital or reserve fund contributions sponsors charge in new developments. New development buyers should also budget for the sponsor attorney fee. Estimates only, not tax or legal advice; confirm exact figures with your real estate attorney before signing a contract.
Two patterns show up constantly in my closings. First, the mortgage recording tax is the overlooked reason all-cash offers stretch further in NYC: skipping a $800,000 loan on a condo saves $15,400 in tax alone. Second, the co-op exemption from both title insurance and mortgage recording tax is why the same purchase price can cost $15,000 to $20,000 less to close as a co-op than as a condo.
Every buyer line item on a $1,000,000 purchase with 80% financing ($800,000 mortgage), at 2026 NYC rates:
| Cost Item | Co-op | Condo | New Development |
|---|---|---|---|
| Mansion tax (1% at this price) | $10,000 | $10,000 | $10,000 |
| Mortgage recording tax (1.925% of the $800K loan) | $0 (exempt) | $15,400 | $15,400 |
| NYC + NY State transfer taxes | $0 (seller pays) | $0 (seller pays) | $18,250 if shifted to buyer |
| Title insurance | $0 (lien search instead, ~$400) | ~$4,000 to $4,500 | ~$4,000 to $4,500 |
| Buyer attorney fee | $2,000 to $3,000 | $2,500 to $3,500 | $3,000 to $4,000+ |
| Lender costs (bank attorney, appraisal, origination, points) | $3,000 to $10,000 | $3,000 to $10,000 | $3,000 to $10,000 |
| Building application and move-in fees | $1,000 to $2,000 | $1,000 to $2,000 | $1,000 to $2,000 |
| Sponsor extras (sponsor attorney fee, working capital fund) | Not applicable | Not applicable | Set by offering plan |
| Typical all-in total | $20,000 to $30,000 (2-3%) | $38,000 to $42,000 (~4%) | $60,000+ (6%+) |
Tax rates: NYC Dept. of Finance and NY State Dept. of Taxation and Finance, 2026 schedules. Fee lines are typical ranges that vary by lender, building, and offering plan; all-in totals assume a financed purchase and include lender points and escrows at the high end.
Factor in closing costs when budgeting for these properties
16 E 132nd Street #1B
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526 W 158th Street #31
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Listing information provided courtesy of the Real Estate Board of New York's Residential Listing Service (RLS). Information is deemed reliable but not guaranteed. Sale listings verified. ©2026 REBNY. RLS data displayed by Keller Williams NYC.
First, a $550,000 co-op with 80% financing (a $440,000 share loan), the shape of a typical uptown Manhattan or Queens purchase:
| Cost item: $550,000 co-op, $440,000 loan | Buyer pays |
|---|---|
| Mansion tax (starts at $1M) | $0 |
| Mortgage recording tax (co-op share loans exempt) | $0 |
| Lien search (replaces title insurance) | $350 to $450 |
| Buyer attorney fee | $2,000 to $3,000 |
| Lender costs (bank attorney, appraisal, application) | $3,000 to $10,000 |
| Building application and move-in fees | $1,000 to $2,000 |
| All-in total | $6,350 to $15,450 (about 1% to 3%) |
Under $1 million, a financed co-op purchase carries zero tax lines, and a cash purchase drops the lender line too. Now the same math on a $1,200,000 condo with 80% financing (a $960,000 mortgage):
| Cost item: $1,200,000 condo, $960,000 loan | Buyer pays |
|---|---|
| Mansion tax (1% bracket, $1M to $2M) | $12,000 |
| Mortgage recording tax (1.925% of the $960K loan) | $18,480 |
| Title insurance (regulated schedule, scales with price) | about $5,000 |
| Buyer attorney fee | $2,500 to $3,500 |
| Lender costs (bank attorney, appraisal, application) | $3,000 to $10,000 |
| Building application and move-in fees | $1,000 to $2,000 |
| All-in total | roughly $42,000 to $51,000 (about 3.5% to 4.2%) |
The condo buyer writes checks for $30,000+ of taxes the co-op buyer never sees.
Customary split on a standard NYC resale:
| Buyer pays | Seller pays |
|---|---|
| Mansion tax (1% to 3.9% at $1M and up) | NYC transfer tax (1% under $500K, 1.425% at $500K+) |
| Mortgage recording tax (condos and houses only) | NY State transfer tax (0.4%, plus 0.25% at $3M+) |
| Title insurance (condo/house) or lien search (co-op) | Broker commission (negotiated in the listing agreement) |
| Own attorney + bank attorney if financing | Flip tax in many co-op buildings (check the proprietary lease) |
| Lender fees, appraisal, points | Own attorney, payoff and lien release fees |
| Building application and move-in fees | Building move-out and processing fees |
New development is the exception: sponsor contracts routinely shift the transfer taxes (a seller cost everywhere else) onto the buyer, which is covered in the transfer tax section below. Sellers estimating their side of the table can start with my flip tax guide and transfer tax guide.
The mansion tax is a one-time, buyer-paid tax on any residential purchase of $1 million or more, owed to NY State at closing. The 2026 brackets run from 1% on purchases between $1 million and $2 million, to 1.25% from $2 million to $3 million, 1.5% from $3 million to $5 million, and stepwise up to 3.9% at $25 million and above. The rate applies to the entire purchase price, not just the amount over the threshold.
Closing at $999,999 owes zero; closing at $1,000,000 owes $10,000. Many NYC contracts are written at $995,000 or $999,000 for that reason. Full bracket tables and worked examples are in my NYC property tax guide.
The mortgage recording tax is charged on the loan amount, not the purchase price. NYC buyers pay 1.8% on loans under $500,000 and 1.925% on loans of $500,000 and above; the lender pays a further 0.25% itself, which is why you sometimes see the combined rate quoted as 2.05% or 2.175%. On the $800,000 loan in the table, the buyer's share is $15,400.
Co-ops are the exception. Co-op shares are personal property, not real property, so a co-op share loan is never recorded as a mortgage and pays zero recording tax. Together with skipping title insurance, that exemption is why the same $1 million purchase closes for $15,000 to $20,000 less as a co-op than as a condo. The buyer-side checklist for a share purchase, line by line with who sets each fee, is in the guide to co-op closing costs, and the standalone closing cost calculator runs the totals for your price and property type.
Condo buyers have one tool to shrink this tax: a purchase CEMA (Consolidation, Extension and Modification Agreement), where you assume the seller's existing mortgage balance and pay recording tax only on the new money. If the seller still owes $600,000 and you are borrowing $1 million, a CEMA saves roughly $11,550, typically split with the seller in negotiation. CEMAs need both lenders to cooperate and add a few weeks, so raise the question at offer time, not the week before closing.
Two transfer taxes stack on every NYC sale: the NYC Real Property Transfer Tax at 1% on residential sales under $500,000 and 1.425% at $500,000 and above, plus the NY State transfer tax at 0.4%. Residential sales of $3 million and up pay an extra 0.25% to the state, bringing the combined city-state range to 1.4% to 2.075% of the sale price. On a resale, the seller pays these by custom and by the contract, which is why they show as $0 in the buyer columns above. My NYC transfer tax guide covers the brackets and exemptions in detail.
New development is where buyers get caught. Sponsor purchase agreements routinely shift both transfer taxes to the buyer, which adds $18,250 on the $1 million example. The offering plan shows who pays before you sign.
Sponsor contracts can also pass the sponsor's own attorney fee to the buyer. Every one of these line items is negotiable before you sign the purchase agreement, and none of them afterward.
I run this stack on every offer my buyers make, whether co-op, condo or sponsor unit.
Schedule a Free ConsultationCondos, new developments and houses transfer by deed, and every lender requires title insurance. You buy two policies at closing: the lender's policy, which protects the bank, and an owner's policy, which protects your equity against prior liens, ownership claims and recording errors. New York premiums follow regulated rate schedules that scale with the purchase price: figure $3,000 to $8,000+ across typical NYC price points, with roughly $4,000 to $4,500 on a $1 million condo.
Co-op buyers skip title insurance entirely because no deed changes hands. In its place, your attorney orders a lien search on the shares and the apartment, typically $350 to $450, plus a small UCC-1 filing fee if you finance.
New York is an attorney state: no contract binds until both sides' lawyers approve it, and nobody closes without one. Most NYC residential attorneys charge a flat fee, and the complexity of the deal sets the number: $2,000 to $3,000 for a co-op purchase, $2,500 to $3,500 for a condo, and $3,000 to $4,000+ for new development, where reviewing the offering plan adds real hours. If you finance, the bank's attorney bills you separately, typically $1,000 to $1,500.
My guide to NYC real estate attorneys covers what they do at each stage and the red flags to watch when hiring one.
The managing agent charges purchase application and processing fees, plus a move-in deposit that is often refundable; $1,000 to $2,000 is a sensible budget, and financed co-op buyers add a recognition agreement fee. Your lender charges application, appraisal, and credit fees, plus any origination points you elect, which is why the lender line in the table swings from $3,000 to $10,000.
New development adds the sponsor layer: a working capital fund contribution, commonly one or two months of common charges, plus any reserve fund contribution and the sponsor attorney fee where the offering plan passes it through. None of these appear on a resale closing statement.
In Westchester, Rockland and the Hudson Valley, two of the largest line items change.
The New York State transfer tax of 0.4% follows you anywhere in the state, and it is a seller cost on a normal resale. The New York City Real Property Transfer Tax exists only inside the five boroughs, the biggest closing-cost difference between a city sale and a suburban one.
The mansion tax changes shape rather than disappearing. New York Tax Law Section 1402-a puts a 1% buyer-paid tax on any residential purchase at $1,000,000 or more anywhere in New York State. The progressive brackets above 1% that this page has been describing were added in 2019 and apply only to purchases inside New York City. Outside the city, the rate stays flat at 1% no matter the price.
A $3,000,000 house in Westchester owes the flat 1%, or $30,000. A $3,000,000 condo in Manhattan sits in the 1.5% bracket and owes $45,000. Same price, $15,000 apart, purely because of which side of the city line the deed records on. Run the city figure through the mansion tax calculator and compare.
Two more differences to raise with your attorney: the mortgage recording tax is set at the county level and generally runs below the New York City rate, so a financed suburban purchase usually carries a smaller recording bill than the figures in the table above. And a handful of municipalities levy their own transfer tax on top of the state's, which does not exist in most of the Hudson Valley but does in specific cities, so confirm the local rate for the exact municipality before you budget.
Title insurance does not change: it applies to a house or a condo in either place.
At the same price, the co-op saves roughly $20,000 on the $1 million example: $15,400 in recording tax plus $4,000+ in title insurance. The co-op vs. condo guide weighs the rest of the tradeoffs.
Three thresholds punish crossing them by a dollar. A $1,000,000 price triggers $10,000 of mansion tax that $999,999 avoids. A $500,000 loan pays 1.925% recording tax on the whole balance where $499,999 pays 1.8%, a $625 jump for one borrowed dollar. And a $500,000 price moves the transfer tax from 1% to 1.425%, which matters whenever you are the one paying it.
On condo resales where the seller carries a sizable mortgage, a CEMA limits your recording tax to the new money only. Ask your attorney to raise it during contract negotiation, because both lenders need lead time.
Transfer taxes, the sponsor attorney fee, and working capital contributions are all contract terms, not law. In buildings with standing inventory, sponsors regularly absorb some or all of them to get a deal signed without cutting the public asking price. The later in the sellout you buy, the more room there usually is.
Recording tax scales with the loan, so every $100,000 you do not borrow on a condo saves $1,925 at closing. Weigh that saving against keeping cash liquid. Lender credits in exchange for a slightly higher rate can also offset upfront costs when you expect to refinance within a few years.
Budget 2% to 3% of the purchase price for a co-op, 4% to 5% for a condo, and 6% or more for new development, on top of your down payment, and set it beside your pre-approval budget before you make an offer.
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Content published: February 2026 · Milton Coste · Keller Williams NYC · License No. 10301213304
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Factor in closing costs when budgeting for these properties
155-01 90th Avenue #3-A
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759 E 10th Street #1B
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Licensed Real Estate Associate Broker · Keller Williams NYC
License No. 10301213304 · 360 Madison Avenue, 9th Floor, New York, NY 10017
