Closing Costs in NYC: The Complete Buyer and Seller Guide

GUIDES · CLOSING COSTS

Every closing-cost line item on a Manhattan apartment transaction — who pays what, how the numbers actually work, and the differences between co-ops, condos, financed and all-cash purchases — with worked examples at $1M, $3M, $5M, and $10M.

The Roebling Team at Compass · Closing-Cost Guide · 2026

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Why closing costs matter more in New York than anywhere else

Closing costs on a Manhattan apartment transaction routinely run between 2 and 7 percent of the purchase price on the buyer side, and between 8 and 10 percent of the purchase price on the seller side — meaningfully higher than the equivalent costs in almost every other major American real estate market, and meaningfully higher than buyers and sellers from other markets typically expect. For a $5 million purchase, this is a buyer-side cost of roughly $100,000 to $350,000 and a seller-side cost of $400,000 to $500,000 — real money that affects how the transaction is structured, how the offer is calibrated, and whether the transaction closes at all.

The reason for the cost concentration is straightforward: New York City and New York State have layered multiple taxes onto real estate transactions over decades, and the layering has compounded. The mansion tax, the mortgage recording tax, the city and state transfer taxes, the flip tax at most cooperatives, the title insurance premium structure, the attorney and managing-agent fee schedule — each individually is recognizable from other markets, but the combination is uniquely heavy. Buyers and sellers who underestimate these costs are routinely caught short at the closing table or, worse, after the contract is signed and the structuring options have already been foreclosed.

This guide walks the full closing-cost menu from both sides of the table. It distinguishes between cooperative and condominium transactions where the costs differ, between financed and all-cash transactions where the costs differ, and between price tiers where the marginal rates change. The worked examples at the bottom — $1 million, $3 million, $5 million, and $10 million — give buyers and sellers a calibration point against which to compare their own transaction.

The numbers presented are typical for Manhattan luxury residential transactions in 2026. Every item should be confirmed against the specific transaction's facts, the specific building's policies, and the specific advisors engaged. Tax rates and statutory thresholds change; this guide reflects the rate structure in effect at the time of publication.

The structural framing: who pays what

Closing costs in a Manhattan transaction divide into four broad categories, allocated by long-established New York practice between buyer and seller.

Buyer-side closing costs include the buyer's attorney fees, the buyer's title insurance (on condo purchases) or co-op search (on co-op purchases), the buyer's managing-agent and lender fees, the mortgage recording tax (on financed purchases of condos), the mansion tax, and a series of smaller items — UCC filing, lien search, recording charges, escrow setup, and adjustments for taxes and common charges through the closing date. The total typically runs 2 to 4 percent of the purchase price on a cooperative purchase and 3 to 5 percent on a financed condominium purchase, with the difference driven primarily by the mortgage recording tax and the title insurance premium on the condominium side.

Seller-side closing costs include the seller's attorney fees, the brokerage commission (the largest seller-side line item, typically 5 to 6 percent of the sale price), the NYC and NYS transfer taxes (typically 1.825 percent combined for most luxury transactions), the cooperative's flip tax if applicable, the managing-agent transfer fees, and the move-out and miscellaneous closing-day items. The total typically runs 7 to 10 percent of the sale price.

Shared adjustments — pro-rations for taxes, common charges or maintenance, and rents — settle between buyer and seller at closing based on the closing date and are not properly "closing costs" but appear on the closing statement.

Lender-side and managing-agent administrative fees — the application fees, processing fees, credit checks, and various small charges that the lender and the managing agent levy regardless of whether the transaction closes — are typically buyer-paid and add up to a few thousand dollars across most transactions.

The sections below take each side in turn.

Buyer-side closing costs

The mansion tax

The single most visible buyer-side tax on a Manhattan luxury purchase is the mansion tax — New York State's progressive transfer tax on residential purchases above $1 million. The mansion tax is paid by the buyer at closing, applies equally to cooperative and condominium purchases, and is calculated on the full purchase price (not the amount above $1 million).

The rate schedule, as currently in effect, runs:

Purchase price	Mansion tax rate
$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%

For a $3 million purchase, the mansion tax is $45,000. For a $5 million purchase, $112,500. For a $10 million purchase, $325,000.

The tax was originally enacted in 1989 at a flat 1 percent on purchases above $1 million; the progressive structure above $2 million was added in 2019. The progressive rates make the mansion tax a substantial line item at the upper price tiers and a meaningful — though not transaction-defining — cost at the lower end of the luxury market.

The mansion tax applies to the buyer's intended use regardless of whether the apartment is a primary residence or a pied-à-terre. A separately proposed pied-à-terre tax — which would have layered additional annual taxes on non-primary-residence apartments above $5 million — has been considered by the New York State Legislature multiple times since 2014 and has not been enacted.

The mortgage recording tax (financed condos only)

The mortgage recording tax is the second-largest buyer-side cost on a financed condominium purchase and one of the most consequential structural differences between buying a co-op and buying a condo. The tax is imposed by New York City and New York State jointly on the recording of a mortgage against real property; it applies to condominium financings but not to cooperative financings, because cooperative loans are technically secured by shares (personal property) rather than by real property.

The combined city-and-state rate is:

• 1.80 percent on mortgages under $500,000
• 1.925 percent on mortgages of $500,000 or more

The tax is calculated on the mortgage amount, not the purchase price. For a $2 million condominium purchase with $1.5 million in financing, the mortgage recording tax is approximately $28,875. For a $5 million condominium purchase with $3.5 million in financing, $67,375. For a $10 million condominium purchase with $7 million in financing, $134,750.

The lender pays a small portion of the tax (0.25 percent) directly; the remainder is the buyer's responsibility at closing.

For buyers acquiring condominiums with substantial financing, the mortgage recording tax is the largest single closing-cost item after the mansion tax and the deciding factor in many co-op-versus-condo evaluations. For all-cash buyers, the tax does not apply.

A common structuring technique — the CEMA (Consolidation, Extension and Modification Agreement) — allows the buyer of a condominium to assume the seller's existing mortgage (subject to lender approval and various transactional negotiations) and avoid paying mortgage recording tax on the assumed portion. CEMAs can produce substantial savings on the largest financed transactions but require coordination between the buyer's attorney, the seller's attorney, both lenders, and the title company, and are not always feasible.

Title insurance (condos) or co-op search (co-ops)

Buyers of condominium apartments purchase title insurance — both an owner's policy (protecting the buyer's title) and, if financing, a lender's policy (protecting the lender's lien). New York title insurance premiums are regulated by the state and quoted from a published rate manual; the all-in cost on a $5 million condominium purchase runs approximately $20,000 to $25,000 for the owner's and lender's policies combined.

Buyers of cooperative apartments do not purchase title insurance — there is no real property title to insure — but pay for a lien search and a UCC search, plus various smaller items related to the share transfer. The all-in cost on the co-op side is typically $1,500 to $3,000.

This is one of the recurring closing-cost differentials in favor of cooperative purchases.

Attorney fees

Buyer's attorney fees on a Manhattan luxury transaction typically range from $3,000 to $7,500, with the most common range for standard transactions falling between $3,500 and $5,000. Complex transactions — substantial financing, trust ownership, LLC ownership, foreign-buyer structuring, complicated estate planning — can run $7,500 to $15,000 or more.

The attorney's role on a buyer-side closing covers contract negotiation, contract review, board package review (on co-op purchases), the closing itself, and the various transactional items the attorney handles on the buyer's behalf. A good real estate attorney — and the Manhattan transactional bar has a relatively small set of recognized practitioners — pays for the fee multiple times over in negotiated contract terms, identified problems with the package or the building, and the avoidance of closing-day surprises.

The Roebling Team works regularly with a small set of attorneys we recommend specifically; the fee economy and the quality differential favor the recognized practitioners.

Managing agent fees

The managing agent for the cooperative or condominium charges a series of fees in connection with the transaction. The exact menu varies by building and managing agent, but a standard set includes:

• Application fee: $500 to $1,500. Paid when the buyer submits the application or board package.
• Processing fee: $500 to $1,000. Often charged alongside the application fee.
• Credit check fee: $50 to $250 per applicant.
• Move-in fee: $500 to $2,000. Charged at closing or move-in.
• Move-in deposit: $500 to $2,500, refundable. Held against any damage caused during the move-in process.
• Lead-based paint disclosure fee: $25 to $100, applicable on pre-1978 buildings.
• Working capital contribution: typically one to three months of maintenance or common charges, payable at closing into the building's reserve fund.

The total managing-agent menu typically runs $2,500 to $7,500 per transaction, with the higher end on tier-one prewar cooperatives that maintain more comprehensive processing fee schedules.

Lender fees (on financed purchases)

The lender charges a series of fees in connection with a mortgage closing:

• Application fee: $300 to $500
• Appraisal fee: $500 to $1,200 (condo); $400 to $800 (co-op)
• Credit check fee: $25 to $100
• Loan origination fee or points: variable, typically 0 to 2 points on the loan amount
• Lender's attorney fee: $750 to $1,500
• Tax escrow setup: variable
• Mortgage recording tax (covered above): the largest line item

Lender fees typically aggregate to $2,000 to $5,000 across the menu items beyond the mortgage recording tax, with substantial variation based on the lender and the loan structure.

Adjustments and pro-rations

The closing statement includes a series of pro-rations between buyer and seller for the costs that accrue daily — real estate taxes (on condos), maintenance or common charges (on both), and various utility and service charges. These adjustments are settled at closing based on the closing date and are not properly "closing costs" but appear on the closing statement and affect the buyer's day-of-closing cash requirement.

A typical adjustment on a closing midway through a month transfers half a month's maintenance and a few thousand dollars in tax pro-ration to the seller; on a closing at the end of a month, the adjustments are minimal. The amounts are predictable but should be calculated into the buyer's day-of-closing wire transfer requirement.

Worked examples (buyer side)

The four examples below give a calibration on how the buyer-side closing costs scale across price tiers. Each example assumes a standard Manhattan luxury transaction with the noted financing percentage.

Example 1: $1 million cooperative purchase, 25 percent financing ($750,000 loan)

• Mansion tax: $10,000
• Mortgage recording tax: $0 (cooperative — not applicable)
• Title insurance / co-op search: ~$2,000
• Buyer's attorney: $4,000
• Managing agent fees: $3,500
• Lender fees (ex-MRT): $2,500
• Other: $1,500
• Total: approximately $23,500 (2.4% of purchase price)

Example 2: $3 million condominium purchase, 50 percent financing ($1.5 million loan)

• Mansion tax: $45,000
• Mortgage recording tax: $28,875
• Title insurance (owner's + lender's): ~$15,000
• Buyer's attorney: $5,000
• Managing agent fees: $3,000
• Lender fees (ex-MRT): $3,500
• Other: $2,500
• Total: approximately $102,875 (3.4% of purchase price)

Example 3: $5 million cooperative purchase, all-cash

• Mansion tax: $112,500
• Mortgage recording tax: $0 (all-cash)
• Title insurance / co-op search: ~$2,500
• Buyer's attorney: $5,500
• Managing agent fees: $5,000
• Lender fees: $0 (all-cash)
• Other: $2,500
• Total: approximately $128,000 (2.6% of purchase price)

Example 4: $10 million condominium purchase, 50 percent financing ($5 million loan)

• Mansion tax: $325,000
• Mortgage recording tax: $96,250
• Title insurance (owner's + lender's): ~$28,000
• Buyer's attorney: $10,000
• Managing agent fees: $5,000
• Lender fees (ex-MRT): $5,500
• Other: $5,000
• Total: approximately $474,750 (4.7% of purchase price)

The pattern is consistent: the mansion tax dominates buyer-side costs at the upper price tiers, the mortgage recording tax is the largest financing-related cost and the largest co-op-versus-condo differential, and the remaining items are predictable and proportional. Buyers who model these costs accurately into the offer calibration avoid the closing-table surprises that are otherwise routine.

Seller-side closing costs

Broker commission

The single largest seller-side cost on a Manhattan transaction is the brokerage commission. Standard commission practice in Manhattan luxury residential transactions is 5 to 6 percent of the sale price, typically split between the listing broker and the buyer's broker. The commission is paid by the seller at closing.

The commission structure has been subject to substantial recent change following the 2024 National Association of Realtors antitrust settlement, which removed the requirement that seller-side commission offers be published on the multiple listing service. The practical effect in Manhattan has been mixed; the brokerage commission continues to be paid by sellers in most transactions, but the explicit negotiation of commission structure now happens earlier and more transparently. Buyers and buyer's brokers may have separate compensation arrangements that affect the total commission paid.

For a $5 million sale, a 5 percent commission is $250,000; a 6 percent commission is $300,000. This is the line item that most directly trades against the net proceeds and that sellers most often want to negotiate, though the quality of representation — which materially affects sale price, time on market, and net proceeds — is rarely commensurate with the marginal commission savings.

NYC and NYS transfer taxes

The City of New York and the State of New York both impose transfer taxes on real estate sales. The rates apply to both co-op and condo sales at the same level.

New York City Real Property Transfer Tax (RPTT):

• 1.00 percent on sale prices under $500,000
• 1.425 percent on sale prices of $500,000 or more

New York State Real Estate Transfer Tax:

• 0.40 percent on sale prices under $3 million
• 0.65 percent on sale prices of $3 million or more

For a $1 million sale, the combined transfer tax is approximately $18,250. For a $3 million sale, approximately $62,250. For a $5 million sale, approximately $103,750. For a $10 million sale, approximately $207,500.

Both transfer taxes are paid by the seller at closing. New York City requires the transfer tax form (the RPT) and the New York State transfer tax form (the TP-584) to be filed with the closing documents.

Flip tax (most cooperatives)

The flip tax is a private transfer fee paid by the seller to the cooperative corporation at the closing of a sale. It is not a government tax; it is a building-imposed fee, established in the cooperative's offering plan or by-laws, designed to capture some portion of the seller's gain for the building's general reserves or for specific capital purposes.

Flip taxes vary substantially in structure across Manhattan cooperatives. The most common forms are:

• Percentage of sale price: typically 1 to 3 percent. The most straightforward structure.
• Percentage of gain (sale price minus original purchase price): typically 5 to 20 percent of the gain.
• Per-share fee: a fixed dollar amount multiplied by the number of cooperative shares attached to the apartment.
• Sliding scale based on holding period: lower for long-term holders, higher for short-term flippers — the original purpose of the term.

Most Manhattan condominiums do not impose a flip tax. The condominium-only equivalent is a transfer fee that some buildings impose (often in the form of a working-capital contribution that the buyer rather than the seller pays at closing), but the structural flip-tax mechanism is largely absent from condominium ownership.

The cooperative's flip-tax structure is published in the offering plan and the by-laws. Sellers should confirm the applicable formula with the managing agent before signing a listing agreement.

For a $5 million cooperative sale at a building with a 2 percent flip tax, the seller's flip-tax obligation is $100,000.

Seller's attorney fees

Seller's attorney fees on a Manhattan luxury transaction typically run $3,000 to $7,500 — broadly comparable to buyer-side attorney fees. The seller's attorney handles contract negotiation, the title or share-transfer review on the seller's side, the closing itself, and the various transactional items the attorney coordinates for the seller.

Managing agent fees (seller side)

Most managing agents charge a series of seller-side fees in connection with the transaction:

• Move-out fee: $500 to $2,000
• Stock transfer fee (on co-ops): $500 to $2,500
• Lien letter fee (on co-ops): $250 to $750
• Closing fee: $250 to $1,000
• Other administrative items: variable

The seller-side managing-agent menu typically aggregates to $1,500 to $5,000 per transaction, with the higher end on tier-one prewar cooperatives.

NYS equalization tax (on certain corporate seller transactions)

Sales by entities (rather than individuals) may trigger additional New York State transfer tax obligations. The structure varies by entity type and the specifics of the transaction. Sellers transferring through trusts, LLCs, or corporate entities should consult their tax advisor on the specific implications for the transaction.

Federal capital gains tax

Sellers of a primary residence may exclude up to $250,000 in capital gains (single filers) or $500,000 in capital gains (married joint filers) under Internal Revenue Code Section 121, provided the residence-and-use requirements have been satisfied. Gains above the exclusion are taxed at long-term capital gains rates (currently 15 percent or 20 percent at the federal level, depending on income tier, plus the 3.8 percent net investment income tax for high earners) and at the New York State capital gains rate (currently at top marginal income tax rates).

Sellers of investment properties or non-primary residences cannot claim the Section 121 exclusion. The full gain is taxable.

The federal capital gains question is not strictly a closing cost — the tax is paid on the seller's annual return, not at closing — but it is a substantive part of the seller's all-in transaction economics and should be modeled before the listing decision.

Worked examples (seller side)

The four examples below give a calibration on how the seller-side closing costs scale across price tiers. Each example assumes a standard Manhattan luxury transaction with the noted brokerage commission.

Example 1: $1 million cooperative sale, 6% commission, 2% flip tax

• Broker commission: $60,000
• NYC + NYS transfer tax: $18,250
• Flip tax: $20,000
• Seller's attorney: $4,000
• Managing agent fees: $2,500
• Other: $1,500
• Total: approximately $106,250 (10.6% of sale price)

Example 2: $3 million condominium sale, 5% commission, no flip tax

• Broker commission: $150,000
• NYC + NYS transfer tax: $62,250
• Flip tax: $0
• Seller's attorney: $5,000
• Managing agent fees: $2,000
• Other: $2,500
• Total: approximately $221,750 (7.4% of sale price)

Example 3: $5 million cooperative sale, 6% commission, 2% flip tax

• Broker commission: $300,000
• NYC + NYS transfer tax: $103,750
• Flip tax: $100,000
• Seller's attorney: $5,500
• Managing agent fees: $3,500
• Other: $3,000
• Total: approximately $515,750 (10.3% of sale price)

Example 4: $10 million condominium sale, 5% commission, no flip tax

• Broker commission: $500,000
• NYC + NYS transfer tax: $207,500
• Flip tax: $0
• Seller's attorney: $10,000
• Managing agent fees: $4,000
• Other: $5,000
• Total: approximately $726,500 (7.3% of sale price)

The pattern on the seller side is consistent across price tiers: brokerage commission is the largest line item, transfer taxes are the second-largest, flip taxes at cooperatives are the third when applicable, and the remaining items are predictable. The all-in cost is meaningfully higher than buyer-side closing costs at every price tier — typically two to three times higher in absolute dollar terms.

Common structuring questions

When does it make sense to use a CEMA?

A CEMA (Consolidation, Extension and Modification Agreement) can save substantial mortgage recording tax on financed condominium purchases by assuming the seller's existing mortgage rather than originating a new loan. The seller benefits from a portion of the savings (typically negotiated as a credit to the buyer, with the seller paying the mortgage tax that would otherwise have been owed on the consolidated principal balance), and the buyer pays less in mortgage recording tax overall.

CEMAs are most worthwhile on financings above $1 million where the savings exceed the additional transactional friction. They require lender cooperation on both sides, attorney coordination, and title-company processing. Not all sellers' lenders will cooperate. The economics should be modeled by the attorneys before the contract is finalized.

How are closing costs allocated in custom contracts?

The standard New York real estate contract allocates closing costs along the lines this guide describes. Custom contracts can reallocate some items — most commonly, the buyer's transfer-tax obligation in a small number of transactions structured around specific tax-planning goals, or the seller's contribution to specific buyer-side costs in concessionary deals. Buyers and sellers can negotiate these allocations but should understand that the standard practice is well-established and that material deviation tends to create as many problems as it solves.

Are closing costs negotiable?

Some closing costs are negotiable; most are not.

• Broker commission: yes, negotiable between the seller and the listing broker.
• Attorney fees: yes, negotiable with the attorney before engagement.
• Lender fees (origination, points): yes, negotiable with the lender, particularly for buyers with strong qualifications.
• Managing-agent fees: no, generally set by the building and the managing agent.
• Transfer taxes, mansion tax, mortgage recording tax: no, statutory rates.
• Flip tax: no, set by the cooperative.
• Title insurance: no, regulated rates.

The actionable negotiations are commission and attorney fees, and to a lesser extent lender fees on financed transactions.

Who pays for what when both buyer and seller are using brokers?

Standard practice is for the seller to pay the brokerage commission at closing and for the listing broker to share a portion with the buyer's broker under their cooperative arrangement. The 2024 NAR antitrust settlement has changed the published-cooperation framework, but the underlying economic flow — seller pays at closing, brokers split — remains the dominant practice in Manhattan. Buyer's brokers may also have direct compensation arrangements with their buyers.

How much cash should I have on hand at closing?

Buyers should expect to wire (in addition to the cash equity in the purchase) the buyer-side closing costs in full, plus any closing-day adjustments, plus any required escrows. For a $3 million condominium purchase with 50 percent financing, this is approximately $1.5 million in equity plus approximately $105,000 in closing costs and adjustments — a total day-of-closing wire of $1.6 million.

Sellers receive the sale proceeds (after deduction of mortgage payoff, closing costs, and other items) typically within a day or two of closing; the seller's net proceeds wire arrives after the closing has been recorded and the funds have cleared.

Closing thoughts

Closing costs in Manhattan are predictable, substantial, and consequential. The buyer or seller who reads them correctly at the contract stage is positioned to negotiate from accurate numbers, to structure the transaction efficiently, and to arrive at closing with cash flow that matches expectations. The buyer or seller who reads them late is positioned for surprise — and surprise at the closing table is rarely cheap to resolve.

The Roebling Team at Compass works the closing-cost question at the offer stage, before the contract is signed, with the buyer's or seller's attorney engaged early enough to identify the structuring opportunities and the items requiring building or lender coordination. This is structural cash-flow work — not a closing-day spreadsheet.

Considering a Manhattan transaction?

If you're considering a purchase or sale and want to model the closing-cost economics on your specific transaction, a 30-minute consultation is the right starting point. We'll work through the numbers — buyer side, seller side, financing structure, building-specific items — and orient the transaction around the cash-flow reality rather than around the headline price.

Schedule a consultation →

Corey Cohen, Principal The Roebling Team at Compass
646.939.7375 · c.cohen@compass.com

Run the numbers

• Mansion Tax Calculator — buyer-paid tax on purchases above $1M, with the 2026 progressive schedule
• Buyer Closing Cost Calculator — full buyer-side closing-cost menu
• Seller Closing Cost Calculator — full seller-side closing-cost menu, including flip taxes by building

Related guides

• Co-op vs Condo in Manhattan: What's Different and Which Is Right for You — the structural ownership distinction that drives the mortgage-recording-tax differential
• How NYC Co-op Boards Actually Work — board approval mechanics for cooperative purchases
• Pied-à-Terre Buying in Manhattan: What's Possible, What's Not — closing-cost implications for non-primary-residence buyers
• Trust Purchasing in Manhattan — closing-cost variations for trust-structured purchases

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This page reflects publicly available information on New York City and State tax law and Manhattan real estate practice as of 2026, and The Roebling Team transaction experience. The Roebling Team at Compass does not provide legal, tax, or financial advice; buyers and sellers should consult their own attorney, accountant, and financial advisor regarding the specific implications of any transaction. Rates, statutory thresholds, and building-specific fees change; all numbers should be confirmed against the current schedule at the time of transaction. © 2026 The Roebling Team at Compass.