NYC Real Estate Q&A

How much are closing costs in NYC for a buyer?

Plan for your attorney's fee, building fees, lender costs if you finance, title insurance on a condo or house, and New York State's mansion tax of 1% when the price is $1 million or more. In New York City, homes at $2 million or more also owe a supplemental tax, so the buyer's combined rate runs from 1.25% to 3.9% depending on price. If you finance a condo or house, you also pay mortgage recording tax on the loan. Ask your attorney for an itemized estimate before you sign the contract. The Buyer's Guide shows where these costs fall in the process.

What is the mansion tax in NYC?

The mansion tax is New York State's 1% tax on the purchase of a home (a house with one to three units, a condo unit or a co-op apartment) for $1 million or more. The buyer pays it. In New York City, a supplemental tax is added from $2 million, and the combined rate applies to the whole price, not just the part above each threshold.

Example: on a $3.5 million condo, the buyer's mansion and supplemental taxes total 1.5%, or $52,500.

Source: NYS Department of Taxation and Finance, Form TP-584-NYC instructions and the real estate transfer tax page, checked October 28, 2026.

What is the mortgage recording tax, and do co-op buyers pay it?

Mortgage recording tax is due when a mortgage on real property is recorded, so it applies when you finance a condo or a house. In New York City, on a loan of $500,000 or more secured by a house with one to three units or a condo unit, the combined rate is $2.175 per $100 of the loan, and the borrower pays $1.925 per $100 (1.925%). For example, the borrower's share on a $1 million loan is $19,250. Smaller loans use a lower rate; your lender or attorney will calculate it. A co-op loan is secured by your shares, which are personal property, and it's filed as a UCC financing statement rather than recorded as a mortgage, so co-op buyers generally don't pay mortgage recording tax.

How much are closing costs in NYC for a seller?

Sellers usually pay New York State's transfer tax (0.4% of the price, or 0.65% for an NYC home at $3 million or more), the NYC Real Property Transfer Tax (1% at $500,000 or less, 1.425% above), their attorney's fee, the agent commission set in their listing agreement, and any building fees, such as a co-op flip tax where the building has one. Sellers who don't live in New York State also make an estimated income tax payment at closing (see below). If you're thinking of selling, a free home valuation is a good first step.

How much are the NYC and NYS transfer taxes on a home sale?

New York State charges $2 for every $500 of the price (0.4%), plus an additional 0.25% for NYC homes at $3 million or more, for 0.65% in total. New York City's Real Property Transfer Tax on a home is 1% when the price is $500,000 or less and 1.425% above that. It applies to transfers over $25,000, including sales of co-op shares, and the return is due within 30 days. The seller pays the state tax unless the contract says otherwise.

Examples are worked from the published rates. Source: NYS Department of Taxation and Finance and NYC Department of Finance, checked October 28, 2026.

Do transfer taxes and the mansion tax apply to co-ops?

Yes. New York State counts a residential co-op apartment as residential real property for its transfer tax and mansion tax, and New York City's Real Property Transfer Tax covers transfers of co-op shares. Mortgage recording tax is the exception: it generally doesn't apply to co-op loans.

Co-op vs. condo in NYC: what's the difference?

With a condo, you own real property: you get a deed to your unit and a share of the common areas. With a co-op, you buy shares in the corporation that owns the building and get a proprietary lease for your apartment. Co-op boards review buyers closely and require an interview, and they often limit renting out. Condo approval is less rigorous, with no interview, and condos are usually more flexible for renting out. The Buyer's Guide has a side-by-side comparison.

What is a co-op board package?

A board package is the application a co-op board reviews before it approves a buyer. Each building sets its own list, which typically covers the signed contract, financial statements, tax returns, bank and employment records and reference letters. After reviewing it, the board interviews the buyer. Glenn helps buyers prepare the package and get ready for the interview.

How long does it take to buy an apartment in NYC?

After the contract is signed, a condo purchase usually closes in about one to two months and a co-op in about three to four months, because the co-op board has to review and approve the buyer. Before you sign, your attorney reviews the contract, the building's financials and the board minutes. If you're financing, the loan application and appraisal follow the contract.

Are there programs for first-time home buyers in NYC?

Yes. NYC's HomeFirst Down Payment Assistance Program offers eligible first-time homebuyers up to $100,000 toward a down payment or closing costs, as a forgivable loan. Income limits, a homebuyer education course and HUD purchase-price caps apply. Check current terms with NYC HPD.

Can I buy a home in New York City if I live outside the US?

Yes, you can start from abroad with remote calls and a shortlist of homes. Condos are often the more practical route for international buyers, since condo approval is less rigorous than a co-op's and has no interview. Co-op boards set their own requirements. Work out the financing and which steps need you in person with your bank and attorney early. Glenn works with buyers in English, Spanish, Italian and French; see the guides in Español and Italiano.

What taxes apply when a foreign owner sells a NYC home?

Under FIRPTA, the buyer generally must withhold 15% of the sale price from a foreign seller and send it to the IRS. There's no withholding if the price is $300,000 or less and the buyer will live in the home, and the rate is 10% if the price is over $300,000 up to $1 million and the buyer will live there. A seller can ask the IRS for reduced withholding with Form 8288-B; the IRS normally acts on it within 90 days. Separately, any seller who isn't a New York State resident makes an estimated state income tax payment at closing, on Form IT-2663 for a house or condo and Form IT-2664 for a co-op.

Who pays the broker fee on a NYC rental under the FARE Act?

Under the FARE Act (Local Law 119 of 2024, in effect since June 11, 2025), an agent working for the landlord can't charge you a broker fee, and a landlord can't make renting an apartment conditional on hiring an agent. You can still hire your own agent to search for you, and you pay that agent the fee you agreed to. Any fees you'll pay must be shown in the listing and in a signed, itemized disclosure before you sign the lease. The NYC Department of Consumer and Worker Protection (DCWP) enforces the law, and tenants can also take a violation to court.

What can a landlord charge when I apply for and move into an apartment?

Expect the first month's rent and a security deposit of no more than one month's rent. A landlord can charge no more than $20 for a background or credit check, and none if you provide one done in the last 30 days. Key money is illegal. For an apartment that isn't rent regulated, the landlord must return your deposit within 14 days of move-out, with an itemized statement of any deductions. A late fee is allowed only when rent is more than 5 days late, and it's capped at $50 or 5% of the monthly rent, whichever is less. The Renter's Guide lists the documents to prepare.

Where can I check these rates myself?

On the agency pages: the NYS Department of Taxation and Finance for transfer, mansion and mortgage recording taxes; the NYC Department of Finance for the Real Property Transfer Tax; the IRS for FIRPTA; DCWP for the FARE Act; and the NYS Attorney General's tenants' rights guide for deposits and fees. All are linked in the sources at the end of this page.