For The Savvy Real Estate Player

Please Clarify My Closing Costs!

Hagay Azoulay Jul 1, 2015 8:16:00 PM Buying

“Closing Costs” are generally lumped together and referred to as one sole number.  Your attorney will provide you with a details calculation for the various components, however these helpful notes should give you a good idea of the main items so you know what to anticipate, beforehand.

  • Generally, NYC and NYS transfer taxes (1.825% of price) and seller's attorney fees, if applicable, are paid by the seller. However, when buying a sponsor unit (i.e. a new development), these expenses are the buyer's responsibility.

  • There are fees associated with services from your attorney, the insurance company, the title search company and perhaps other service providers that will assist in the due diligence on the property and recording of the contract.

  • All property-related documents must be copied, certified and filed with the New York City Register.

  • All real estate purchases over $1,000,000 are subject to a 1% Mansion Tax.

  • Each building has its own Board that sets rules covering application related fees.

  • Purchasers will be responsible to reimburse the sellers for any portion of the monthly common charges & real estate tax payments that was “pre-paid”.

  • If you are taking on a mortgage to finance your purchase, you will incur costs associated with the mortgage application and origination. Fees vary among lending institutions.

  • Your lender will require you to obtain an independent appraisal as well as a mortgage title insurance.

  • Generally, total mortgage-related costs are approximately 3% to 6% of the borrowed amount.

  • Mortgage tax is a one-time tax paid to the State of NY when the mortgage is obtained.



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