Comparing NYC Closing Costs: Co-ops, Condos, New Developments, & Condops

Whether you’re considering an apartment in a cooperative (co-op), a condominium (condo), a new development, or a condop (a mix between a co-op and condo), it’s important to understand the differences in NYC closing costs for each building type. Closing costs are an essential part of any real estate transaction, encompassing various expenses that accompany the purchase or sale of a property. In New York City, where the market is as diverse as its residents, each property type carries its own unique set of considerations when it comes to closing costs.

To better grasp the nuances of NYC closing costs, we will focus primarily on the differences between co-ops and condos. For a more comprehensive breakdown, we have included links below to dedicated blogs on co-op closing costs and condo closing costs for those seeking in-depth information on each topic.

Before we delve into the details, let’s briefly compare the closing costs between co-ops and condos, as these two property types account for the majority of residential sales in New York City:

NYC Closing Costs Found In All Property Types

Whether you’re purchasing a co-op, condo, new development, or condop, there are certain charges you can always expect to pay at closing.

Those costs include:

• Attorney’s fees
• Move-in or move-out deposits
• E-Tax filing fees
• Broker’s fees/commission (sellers only)
• FIRPTA and Capital Gains withholding taxes (sellers only)
• Managing agent fees (sellers only)
• Mansion taxes (buyers only)
• Real property transfer taxes (all sellers, and possibly new development buyers – more on new developments later)
• NYS transfer taxes (all sellers, and possibly new development buyers – more on new developments later)
• Building applications, credit checks, etc.

If you’re financing the purchase, you can also expect to pay:

• Origination costs
• Mortgage application fees
• Credit check fees
• Appraisal fees
• Bank attorney fees

All the other closing costs you see in the chart above are specific to either resale co-ops, resale condos, new developments, or condops, which we’ll cover below.

NYC Closing Costs Unique to Co-ops

Cooperative apartments are a unique feature of the New York City housing market, and while they share many closing costs with condos, there are some expenses that are unique.

Co-op-seller-specific NYC closing costs include:

• Stock transfer fees
• UCC-3 filing fees
• Flip taxes (typically sellers, but sometimes negotiable for buyers to absorb this cost)
• Payoff bank attorney fees
• Estate fees
• Lost stock and lease fees

Co-op-buyer-specific NYC closing costs include:

• Lien search fees
• Maintenance adjustments
• UCC-1 filing fees (only for financed co-op buyers)
• Recognition agreement fees (only for financed co-op buyers)

If you are curious about what any of the closing costs we mentioned above are actually for, consider reading our dedicated co-op closing cost blog.

NYC Closing Costs Unique to Condos

The governing and operating structure of condos is more common to what we see in the rest of the country, but there are still a few closing costs that are unique to NYC condos.

Condo-seller-specific NYC closing costs include:

• Reserve fund contributions (if applicable – these are sometimes paid for by the buyer)
• Payoff bank fees (if applicable)
• Property condition disclosure statement waiver fees

Condo-buyer-specific NYC closing costs include:

• Title insurance, title search, and recording fees
• Common charges, property taxes, and insurance premiums
• Contributions to the super’s residence (if applicable)

Financed-condo-buyer-specific NYC closing costs include:

• Mortgage recording tax
• Real estate tax escrow

If you are curious about what any of the closing costs we mentioned above are actually for, consider reading our dedicated condo closing cost blog.

NYC Closing Costs Unique to New Developments and Condops

While co-ops and condos make up the majority of the market, it’s worth mentioning that new developments present slightly different closing cost dynamics. In fact, new developments often have higher totals of closing costs than resale condos.

New-development-specific NYC closing costs include:

• Sponsor attorney fees
• Transfer taxes (though this also applies to condo and co-op sellers)
• Working capital fund contributions
• Contributions to the super’s residence (if applicable)

Please note, while most new developments are condos, there are some new buildings that function as condops (there are also resale condops, but that’s for another article). Condops are legally structured as cooperatives but are run by condo bylaws – see our article or episode about land lease buildings. Condops may have varying closing costs depending on the specific building’s structure and rules.

Closing Costs Vary By Property Type – Do Your Research!

In summary, understanding the nuances of closing costs for different property types is essential for navigating the New York City real estate market. Co-ops and condos have distinct financial requirements, and new developments and condops add further layers of complexity.

With this knowledge and our chart outlining which closing cost applies to which property type, we hope you feel prepared to make an informed decision about which type of property is best for you and your household, or how closing costs could potentially impact your proceeds as a seller.

If you have any lingering questions, please don’t hesitate to reach out. We’re happy to assist you and your household to make savvy decisions in residential real estate in New York City!