New York City Closing Costs for Multi-Family Residential/Commercial

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.

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