Typical Closing Costs in New York City

When purchasing property in New York City, understanding closing costs is essential for budgeting and avoiding surprises at the closing table. These expenses vary depending on transaction specifics, so working closely with your attorney, real estate agent, and lender is crucial.

*Last reviewed: September 14, 2026*

Many NYC transactions fall within a broad closing-cost range, but the total can vary substantially based on financing, tax liability, title insurance, property type, lender charges, transfer-tax allocation, and prepaid items.

What You'll Pay: Quick Overview

Closing costs fall into several categories. Here are the main expenses you'll encounter:

Professional Fees:

• Attorney fees (buyer & seller each have their own)
• Title insurance and search
• Appraisal and inspection

Taxes (Buyer):

• Mortgage recording tax (often the largest single cost)
• Mansion tax (properties $1M+)

Lender Fees:

• Origination, processing, and underwriting fees
• Application and credit report fees

Other Costs:

• Recording fees for deed and mortgage
• Homeowners insurance and property tax escrow
• Move-in fees (condos/co-ops)

Now let's break down each category in detail.

Attorney Fees

Both buyer and seller retain separate attorneys for closing. If financing is involved, the lender's attorney is also involved, paid by the buyer.

Typical fees in NYC:

• Buyer's attorney: $2,000-$5,000
• Seller's attorney: $2,000-$5,000
• Lender's attorney: $500-$1,500 (paid by buyer)

What your attorney does:

• Reviews and negotiates the contract
• Conducts title search
• Reviews title commitment
• Coordinates with all parties
• Attends closing with you
• Reviews closing documents
• Ensures proper recording of deed
• Handles post-closing matters

Experienced NYC attorneys typically charge more, but their expertise can save you far more than the additional fee by identifying and resolving problems. See typical attorney fee structures.

Title Insurance

"Title insurance protects the buyer and lender against any potential legal issues related to the property's ownership history."

Costs typically range from:

• 0.4% to 0.6% of purchase price for owner's policy
• Approximately $5,000-$10,000 on a $1,000,000 property

What you're paying for:

• Title search going back 50+ years
• Protection against unknown liens, defects, or ownership issues
• Legal defense if title problems arise
• Peace of mind for your investment

Two policies are typically purchased:

• Owner's Policy: Protects you (one-time cost, lasts as long as you own the property)
• Lender's Policy: Protects your lender (required for financing)

Note that the lender's policy does NOT protect you—you need your own owner's policy. Understand title insurance and why you need it.

Appraisals and Inspections

Appraisal

Property appraisals cost $400-$800 in New York City, sometimes more for luxury properties or complex situations.

Your lender requires the appraisal to ensure the property is worth the loan amount. Learn what happens if the appraisal comes in low. If the appraisal comes in low, you may need to:

• Renegotiate the price
• Bring additional cash to closing
• Challenge the appraisal

Home Inspection

Home inspections, typically recommended for buyers, range from $500-$1,000 for standard inspections.

Additional specialized inspections may include:

• Pest/termite inspection: $100-$300
• Mold inspection: $300-$1,000
• Structural engineer: $500-$1,500
• Chimney inspection: $200-$500
• Sewer scope: $200-$400

While these add to your costs, they're much cheaper than discovering major problems after you own the property.

A Special Note on Staten Island Properties: Be extremely cautious about listings boasting "finished basement apartments," "mother-daughter setups," or garage conversions. On Staten Island, these are frequently illegal conversions that create significant financial and legal liability for the new owner, including issues with lenders and the DOB. Before making an offer on such a property, read my full warning on the risks of buying a home with an illegal conversion.

Bank and Lender Fees

If you're financing your purchase, expect various lender fees:

Common lender fees:

• Origination fees: 0.5-1% of loan amount
• Application fee: $250-$500
• Credit report: $25-$75
• Processing fee: $300-$900
• Underwriting fee: $400-$900

Example: On an $800,000 loan, a 1% origination fee alone is $8,000.

These fees can be negotiable, so shop around and compare at least three lenders before committing. Even small differences add up quickly on large loans.

Mortgage Recording Tax

This is typically the largest single closing cost for NYC buyers. New York City requires a mortgage recording tax when obtaining a mortgage.

NYC Mortgage Recording Tax: Borrower Portion and Total Combined Rate

For qualifying one-, two-, or three-family residential property and individual residential condominium units, the commonly cited borrower-paid portions are 1.80% for mortgages under $500,000 and 1.925% for mortgages of $500,000 or more. The combined New York State and New York City rates are generally 2.05% and 2.175%, respectively, because the lender generally pays the 0.25% special additional tax component.

Other property classifications, including many commercial, mixed-use, and larger residential-building mortgages, may be subject to different rates. Confirm the applicable rate using the official tax guidance and the transaction documents.

Example on a $1,000,000 mortgage (qualifying residential):

• Borrower-paid portion at 1.925%: $19,250
• Combined tax at 2.175%: $21,750
• The final closing disclosure depends on the mortgage type, property classification, lender allocation, exemptions, and applicable law.

Example on an $800,000 mortgage (qualifying residential):

• Borrower-paid portion at 1.925%: $15,400
• Combined tax at 2.175%: $17,400

Important Notes:

• This tax is NOT required for cash purchases
• It's based on the loan amount, not the purchase price
• A traditional cooperative purchase generally does not involve recording a mortgage against the underlying real estate in the same manner as a deeded home or condominium purchase. A co-op share loan and other financing arrangements may involve different documents, fees, or tax treatment. Confirm the treatment with the lender and closing attorney.
• New construction and sponsor transactions may involve different tax allocation provisions, exemptions, or contractual charges. Do not assume that new construction automatically qualifies for a mortgage-recording-tax exemption.

Official sources: NYC Mortgage Recording Tax | NYS Mortgage Tax

Mansion Tax

Properties priced at $1 million or more face mansion tax on a sliding scale:

|---|---:|

Example: On a $1.5M purchase, mansion tax is $15,000 (1% of $1,500,000). On a $2,000,000 purchase, the combined rate is 1.25%, for a tax of $25,000. This example assumes a qualifying residential transaction with no exemption, special classification, or unusual consideration issue.

This tax is generally paid by the buyer and is due at closing. See the complete mansion tax guide for the full rate table and planning strategies.

Transfer Taxes

Sellers typically pay transfer taxes, though this may be negotiated in the contract.

New York State Transfer Tax

• New York State transfer tax is generally 0.4% of consideration, subject to applicable exemptions and special rules.

NYC Transfer Tax

For qualifying residential Type 1 and Type 2 transfers, NYC RPTT is generally 1% when consideration is $500,000 or less and 1.425% when consideration exceeds $500,000. Other property types may be subject to different rates, including the higher nonresidential rate.

Example on $1M condo purchase (qualifying residential):

• NYS Transfer Tax: $4,000
• NYC Transfer Tax at 1.425%: $14,250
• Total: $18,250

This example assumes a qualifying residential transaction with no exemption, special classification, or unusual consideration issue.

Although the statutory responsibility and customary closing allocation are different concepts, the contract may address credits, reimbursements, or other negotiated economic arrangements.

Official sources: NYC Finance | NYS Transfer Tax

Other Closing Costs

Various other costs you should budget for:

Homeowners Insurance

• First year premium due at closing
• Typically $1,000-$3,000 annually for condos/co-ops
• Higher for houses (depends on property value and coverage)

Property Taxes

• Prorated at closing
• You'll pay from closing date to the next tax payment date

Recording Fees

• $150-$500 for recording the deed and mortgage

Escrow Account Setup

• Lenders often require initial deposits for property taxes and insurance
• Typically 2-6 months of taxes and insurance

Move-in Fees (for condos/co-ops)

• Move-in deposit: $500-$2,000 (often refundable)
• Move-in fee: $250-$1,000 (non-refundable)

Post-Closing Costs to Budget For

• Key changes/lock installation: $200-$500
• Utility connection fees: $100-$300
• Moving costs: $500-$5,000+
• Immediate repairs or improvements

Sample Cost Breakdown

Example: $1,000,000 condo purchase with $800,000 mortgage (qualifying residential)

• Mortgage Recording Tax — borrower-paid portion at 1.925%: $15,400 (combined 2.175%: $17,400)
• Title Insurance: $5,500
• Attorney Fees: $3,500
• Lender's Attorney: $1,000
• Appraisal: $600
• Home Inspection: $750
• Mansion Tax (1%): $10,000
• Bank Fees (1%): $8,000
• Recording Fees: $300
• Homeowners Insurance: $2,000
• Property Tax Escrow: $3,000
• Misc. Fees: $500

Total Closing Costs: Approximately $50,550 (about 5% of purchase price)

Plus your down payment of $200,000, you'd need about $250,550 in cash to close.

Tips to Reduce Closing Costs

1. Shop for Services: Compare rates for homeowners insurance, inspections, and other services where you have a choice

1. Negotiate: Some fees are negotiable, especially if you're bringing significant business to a lender

1. Review Your Loan Estimate: Lenders must provide this within 3 days of application—review it carefully

1. Ask About Lender Credits: Some lenders offer credits toward closing costs in exchange for a slightly higher interest rate

1. Closing Date Timing: Closing late in the month means less prepaid interest

1. Get Recommendations: Your attorney can often recommend cost-effective, quality service providers

Review Your Closing Disclosure

Lenders must provide a Closing Disclosure at least 3 business days before closing. Review it carefully and compare to your Loan Estimate.

Look for:

• Unexpected fees
• Incorrect amounts
• Services you didn't authorize
• Math errors
• Difference from Loan Estimate

Don't hesitate to question anything you don't understand or that seems incorrect.

Conclusion

Closing costs in New York City are substantial, but understanding them helps you budget appropriately and avoid surprises. Work with experienced professionals—particularly a knowledgeable real estate attorney—to navigate the process and ensure you're not paying unnecessary fees.

Remember: these costs are in addition to your down payment. Plan accordingly and maintain a cash reserve for unexpected expenses.

*Contact Pete Weinman, Staten Island Real Estate Attorney, for guidance on your New York property purchase and closing cost questions.*

*This article provides general educational information and is not legal, tax, accounting, lending, or financial advice. Tax rates, exemptions, filing requirements, and closing practices may depend on the property, transaction structure, applicable law, and closing date. Confirm the current calculation with the appropriate attorney, lender, title company, closing agent, or tax professional.*