Closing Costs- Co-Operative Apartments

Co-ops have been the traditional form of owning an upscale apartment for close to a hundred years. In fact, in New York City, 85% of all apartments available for purchase – and almost 100% of the grand pre-war apartments on Fifth, Park and Central Park West are in co-operative buildings. Is your dream apartment a co-op? If so, here is a list fees associated with buying a co-op. Read on, and be prepared.

Buying a condo? Need to find out about condo closing costs? Click here.
Co-op, Condo... What's the difference?
Need help getting a Co-op Board Packagetogether?

For the Seller

Own Attorney .................................................................................................................................. $1,600 and up*
Stock Transfer Stamps ..................................................................................................................... $.05 per share
New York State Real Property Transfer Tax .......... 1% of purchase price if $500,000 or less of entire amount
......................................................................... 1.425% of purchase price if over $500,000 of the entire amount
New York State Real Property Transfer Tax ........................................................ 0.4% (.004) of purchase price
UCC-3 Filing ............................................................................................................................................ $75 and up
Flip Tax (if applicable) .................................................................................... Determined by Co-Operative building
Payoff Bank Fees (if applicable) .......................................................................................................... $450 and up*
Managing Agent Fee ............................................................................................................................ $500 - $750
Move-Out Deposit ................................................................... $500 - $1,000 (usually refundable if no damage)
Broker Commission ............................................................................................................... 6% of purchase price
E Tax Filing (ACRIS) .......................................................................................................................................... $50
Gains Tax Withholding (out of state seller) .......................................................................................... 7.7% of gain
Non-US Resident (FIRPTA) ..................................................................................... 10% of price withheld or paid

For the Purchaser

Own Attorney .................................................................................................................................. $1,600 and up*
Managing Agent Fee ........................................................................................................................................ $750
Credit Report Fee ............................................................................................................ $50 - $100 per applicant
Lead Based Paint Disclosure Fee ................................................................................................................ $0-$50
Mansion Tax ........................................................................... 1% of purchase price where $1,000,000 and over
Move-in Deposit ........................................................ $500 - $1,000 (usually refundable if no damage)

Mortgage-Associated Fees

Origination Costs - Points .................................................................................. 0 - 3% value of loan
Application, Credit Check, etc............................................................................................................... $500 and up
Appraisal ............................................................................................................................................... $275 and up
Bank Attorney ....................................................................................................................................... $500 and up
UCC - 1Filing ........................................................................................................................................... $50 and up
Recognition Agreement Fee ................................................................................................................. $200 and up
Lien Search ....................................................................................................................................................... $350
Maintenance Adjustment........................................................................ Pro-rated for month of closing

 
*Check with bank/mortgage broker for additional fees. New York State Law requires a written letter of engagement if the legal fee will exceed $3,000. Non New York State Residents should procure exemption for state trasfer tax forms (TP584). These are only estimate. Please confirm closing costs for specific transactions with your attorney and/or mortgage representative.