The Complete Guide to NYC Buyer Closing Costs in 2026

Purchasing real estate in New York City is one of the largest financial commitments most people will ever make. Beyond the purchase price itself, buyers in NYC face a unique and often surprising set of closing costs that can add anywhere from 1.5 percent to 6 percent or more on top of the price of the home. For a buyer purchasing a one-million-dollar apartment, that translates to an additional fifteen thousand to sixty thousand dollars in fees and taxes due at closing.

Understanding these costs before you begin your search is critical. Too many first-time buyers in Manhattan, Brooklyn, Queens, and throughout the five boroughs are caught off guard by the financial obligations that come due on closing day. This guide breaks down every buyer closing cost in New York City for 2026, explains how costs differ between co-ops, condos, and new developments, and provides practical strategies for budgeting and negotiation.

Overview of Buyer Closing Costs in NYC

Buyer closing costs in New York City generally fall into several categories: taxes imposed by the city and state, lender-related fees for those financing their purchase, title-related expenses, building-specific charges, and legal fees. The total amount varies significantly depending on the type of property you are buying, whether you are financing or paying cash, and whether the property is a resale or a new development purchased directly from a sponsor.

As a general rule, expect the following ranges for total buyer closing costs in NYC:

Property Type	Estimated Buyer Closing Costs
Co-op apartment (resale)	1% to 2% of purchase price
Condo apartment (resale)	2% to 4% of purchase price
Condo (new development / sponsor unit)	4% to 6% or more of purchase price
Townhouse or single-family home	2% to 5% of purchase price

These percentages can increase further once the mansion tax kicks in for purchases of one million dollars and above, which applies to a large share of NYC transactions.

The NYC Mansion Tax: A Major Buyer Expense

Despite its name, the mansion tax in New York City applies to far more than mansions. Any residential purchase of one million dollars or more triggers this progressive tax, and in a city where the median apartment price regularly exceeds one million dollars, it affects a significant number of buyers. The mansion tax was reformed in 2019 and now uses a graduated rate structure.

Purchase Price	Mansion Tax Rate
Under $1,000,000	No mansion tax
$1,000,000 to $1,999,999	1.00%
$2,000,000 to $2,999,999	1.25%
$3,000,000 to $4,999,999	1.50%
$5,000,000 to $9,999,999	2.25%
$10,000,000 to $14,999,999	3.25%
$15,000,000 to $19,999,999	3.50%
$20,000,000 to $24,999,999	3.75%
$25,000,000 and above	3.90%

The mansion tax is paid by the buyer and applies to co-ops, condos, townhouses, and single-family homes alike. On a two-million-dollar purchase, the mansion tax alone is twenty-five thousand dollars. This is often the single largest closing cost for NYC buyers outside of any broker compensation arrangement.

Mortgage Recording Tax

If you are financing your purchase with a mortgage, the mortgage recording tax is one of the most significant buyer closing costs in New York City. This tax applies to condo purchases, townhouses, and single-family homes. It does not apply to co-op purchases because co-ops involve a transfer of shares in a corporation rather than real property.

The mortgage recording tax rate in NYC is 1.8 percent on mortgage amounts below five hundred thousand dollars and 1.925 percent on mortgage amounts of five hundred thousand dollars and above. This tax is calculated on the loan amount, not the purchase price. For a buyer taking out an eight-hundred-thousand-dollar mortgage on a one-million-dollar condo, the mortgage recording tax would be approximately fifteen thousand four hundred dollars.

There is one important strategy to potentially reduce this tax. If the seller has an existing mortgage on the property, the buyer may be able to negotiate a Purchase CEMA, which stands for Consolidation, Extension, and Modification Agreement. A Purchase CEMA allows the buyer to assume and modify the seller's existing mortgage rather than recording an entirely new one, meaning the mortgage recording tax is only paid on the difference between the new loan amount and the seller's existing loan balance. This can result in savings of thousands or even tens of thousands of dollars.

Title Insurance

Title insurance is required for condo purchases and townhouses where real property is being transferred. It protects the buyer and the lender against claims or defects in the title that may arise after closing, such as undisclosed liens, boundary disputes, or errors in public records. Co-op buyers generally do not purchase title insurance because the transaction involves shares rather than real property.

There are two types of title insurance policies. The owner's policy protects the buyer's equity in the property, and the lender's policy protects the mortgage lender. Most lenders will require the buyer to purchase a lender's title policy as a condition of the loan. Title insurance premiums in New York are regulated by the state, and the cost is approximately four hundred fifty dollars per one hundred thousand dollars of coverage for the owner's policy. On a one-million-dollar condo purchase, expect to pay approximately four thousand five hundred dollars for the owner's title insurance policy.

Attorney Fees

Unlike most states, New York effectively requires both the buyer and seller to be represented by attorneys in residential real estate transactions. The buyer's attorney plays a critical role in reviewing and negotiating the purchase contract, conducting due diligence on the property or cooperative corporation, coordinating with the lender and title company, reviewing closing documents, and attending the closing itself.

Attorney fees for residential real estate transactions in NYC typically range from two thousand to four thousand dollars for a standard transaction. More complex deals, such as new development purchases, multi-unit properties, or transactions involving unusual legal issues, may result in higher fees. Most real estate attorneys in NYC charge a flat fee rather than billing by the hour, and the fee is typically paid at closing.

Co-op Specific Closing Costs

Buying a co-op in NYC is structurally different from buying a condo (see our complete guide to buying a co-op). Because you are purchasing shares in a cooperative corporation rather than real property, several major closing costs are eliminated. Co-op buyers do not pay mortgage recording tax, do not purchase title insurance, and generally face lower overall closing costs. However, co-op purchases come with their own set of fees.

Typical co-op buyer closing costs include the attorney fee (two thousand to four thousand dollars), the mansion tax if the purchase price is one million dollars or more, the co-op application fee (typically five hundred to one thousand dollars), the managing agent fee or co-op attorney fee for processing the board package (approximately five hundred to one thousand five hundred dollars), the move-in deposit which is usually refundable and ranges from five hundred to two thousand dollars, and a credit check or background check fee. There is also the recognition agreement fee, sometimes called the Aztec agreement fee, which typically ranges from three hundred fifty to five hundred dollars and covers the cost of the co-op's review and execution of a document that formally recognizes the lender's interest in your shares.

Condo Specific Closing Costs

Condo purchases in NYC involve the transfer of real property, which means buyers face a broader set of closing costs. In addition to attorney fees and the mansion tax, condo buyers are responsible for mortgage recording tax (if financing), title insurance premiums for both the owner's and lender's policies, title search fees, recording fees for the deed and mortgage, and various lender-related charges such as appraisal fees, application fees, and bank attorney fees.

The total closing costs for a condo purchase in NYC typically range from two to four percent of the purchase price for a resale unit and can reach five to six percent or more for a new development purchase from a sponsor. New development purchases are more expensive because buyers often agree to pay the seller's transfer taxes and the sponsor's attorney fees as part of the purchase terms outlined in the offering plan.

New Development and Sponsor Unit Closing Costs

Purchasing a brand-new condo directly from the sponsor or developer in NYC comes with the highest closing costs of any property type. In addition to all the standard condo buyer costs, sponsor unit buyers frequently face several additional expenses. The sponsor typically passes the New York City transfer tax of 1.425 percent (for purchases over five hundred thousand dollars) and the New York State transfer tax of 0.4 percent to the buyer. The buyer also pays the sponsor's attorney fees, which can range from three thousand to five thousand dollars or more.

The total buyer closing costs for a new development condo in NYC can reach six percent or more of the purchase price. On a two-million-dollar new development purchase, that could mean one hundred twenty thousand dollars in closing costs on top of the purchase price and down payment. Understanding these costs before entering into a contract is essential for proper financial planning.

Lender-Related Fees

Buyers who are financing their purchase will incur additional costs related to the mortgage. These include the mortgage application fee, the appraisal fee (typically five hundred to one thousand dollars), the bank attorney fee (usually seven hundred fifty to one thousand five hundred dollars), the credit report fee, flood certification fees, and various processing or underwriting charges. The total lender-related fees can add two thousand to five thousand dollars to your closing costs.

Your lender is required to provide you with a Loan Estimate within three business days of your mortgage application. This document outlines all estimated closing costs and should be reviewed carefully. Before closing, you will receive a Closing Disclosure that provides the final numbers. Comparing the Loan Estimate to the Closing Disclosure is an important step that your attorney can help you with.

Strategies to Reduce Buyer Closing Costs

While many NYC closing costs are fixed by law, there are several strategies buyers can use to manage and reduce their total costs. First, consider a Purchase CEMA for condo purchases to reduce the mortgage recording tax. Second, negotiate with the seller to contribute toward your closing costs, which is more common in a buyer's market. Third, compare lender fees and shop for the best mortgage terms, as processing and underwriting fees can vary significantly. Fourth, ask about closing credits from the seller or sponsor, particularly in new development purchases where sponsors may offer incentives. Finally, choose a co-op over a condo if possible, as the overall closing costs for co-ops are significantly lower.

Frequently Asked Questions

How Agarunov Law Firm Helps NYC Buyers

At Agarunov Law Firm, our real estate attorneys represent buyers in co-op, condo, townhouse, and new development transactions throughout New York City and New Jersey. From our offices at 30 Broad Street in Manhattan's Financial District, we provide comprehensive representation that includes contract review and negotiation, thorough due diligence on the property and building, coordination with lenders, title companies, and managing agents, review of the closing statement to ensure all charges are accurate, and attendance at closing to protect your interests.

We understand that closing costs can be complex and confusing, and we take the time to walk each client through every fee and charge before closing day. If you are planning to purchase property in NYC, contact us for a free consultation to discuss your transaction and get a clear picture of the costs involved.