Thanks to True Gotham reader Micky, here are estimated closing costs for multi-family dwellings in New York:
For The Seller
- Broker: Typically 6%
- Own Attorney: $5,000 and up
- New York City Transfer Tax: 1.425% of entire gross purchase price, if price is $500,000 or under; or 2.625% of entire gross purchase price, if price exceeds $500,000
- New York State Transfer Tax: 4% (.004) of entire gross purchase price
- Payoff Bank Attorney: $500
if Seller has a mortgage
- Miscellaneous: $500
- Transfer security deposits: TBD
- E Tax Filing (ACRIS): $150
- Gains Tax Withholding: 7.7% of gain
Out of State Seller
- Non US Resident (FIRPTA): 10% of price withheld or paid
For The Purchaser
- Own Attorney: $5,000 and up
- Bank Fees:
• Points: 0 – 2%
• Application, credit, appraisal, bank attorney, engineer and miscellaneous: $6,000- Short-term Interest: One month max (prorated for month of closing)
- Mortgage Tax: 2.175% of entire amount of Mortgage on Loans of $500,000 or under; 2.80% of entire amount of Mortgage on Loans exceeding $500,000
- Real Estate Tax Escrows: 2 to 6 months
- Insurance Escrows: 8 months
- Fee Title Insurance: Approximately $300 per $100,000
- Mortgage Title Insurance: $100 per $100,000
- Miscellaneous Title Charges: $1,000 (recording, etc.)
- Adjustments:
• Rents and Security Deposits: TBD
• Real Estate Taxes: 1 to 6 months
• Insurance: One year- Creation of Corporation or Limited Liability Company: $2,300
Thanks again Micky for the head’s up. Here are estimated closing costs for New York City Co-ops and Condos.
