Buyer Closing Costs
There are often substantial closing costs associated with home purchases. The Digs rebate usually offsets a large portion of those costs or covers all of them and then some.
CO-OP CLOSING COSTS
CO-OP FEES
| CO-OP FEES | $500-$1000 refundable move-in deposit $250-$750 non-refundable move-in fee $400-$700 non-refundable application processing fee $100-$200 non-refundable credit check fee $65 non-refundable digital submission fee *co-op fees vary from building to building |
| RECOGNITION AGREEMENT REVIEW FEE | $150-$300 (If financing) |
LIEN SEARCH / UCC-1
| LIEN SEARCH | $500 |
| UCC I FILING FEE | $100-$150 (if financing) |
TAXES
| MANSION TAX | Mansion Tax is a percentage of your purchase price, depending on the purchase price 1% of the gross purchase price for purchases between $1,000,000 and $1,999,999 1.25% of the gross purchase price for purchases between $2,000,000 and $2,999,999 1.5% of the gross purchase price for purchases between $3,000,000 and $4,999,999 2.25% of the gross purchase price for purchases between $5,000,000 and $9,999,999 3.25% of the gross purchase price for purchases between $10,000,000 and $14,999,999 3.5% of the gross purchase price for purchases between $15,000,000 and $19,999,999 3.75% of the gross purchase price for purchases between $20,000,000 and $24,999,999 3.9% of the gross purchase price for purchases of $25,000,000 and up |
LEGAL
| PURCHASER’S ATTORNEY | $3,500-$4,500 |
| BANK’S ATTORNEY | $1,000-$2,000 |
ADDITIONAL CLOSING COSTS FOR SPONSOR SALES
| SPONSOR’S ATTORNEY | $2,500-$4,500 |
| SPONSOR’S TRANSFER TAXES | Sponsor’s transfer taxes are determined by first calculating the transfer taxes on the purchase price using the following guidelines: NYC Transfer Tax: 1% of the purchase price if $500,000 or below 1.425% of the purchase price if above $500,000 NYS Transfer Tax: $4 per $1000 of purchase price (.4% of purchase price). For sales over $3,000,000, the NYS transfer tax will increase by 0.25%. Once the figure of NYC and NYS taxes is determined, then the taxes are re-calculated based on the sum of the original purchase price and the NYC and NYS transfer taxes. |
CONDO CLOSING COSTS
CONDO FEES
| CONDO FEES | $500-$1000 refundable move-in deposit $250-$750 non-refundable move-in fee $400-$700 non-refundable application processing fee $100-$200 non-refundable credit check fee $65 non-refundable digital submission fee *condo fees vary from building to building |
TITLE INSURANCE
| FEE TITLE INSURANCE | Varies depending on the purchase price and regulated by the state, but is typically approximately. 45% of the purchase price.It is best to use an online rate calculator from a reputable title company website. |
| MORTGAGE TITLE INSURANCE | Reduced rate applies for simultaneous purchase and mortgage (if applicable). It is best to use an online rate calculator from a reputable title company website. |
| RECORDING FEES | $250-$750 |
| MUNICIPAL SEARCH FEES | $350-$500 |
| TITLE ENDORSEMENTS | $75-$150 |
HOMEOWNERS INSURANCE
| HO6 POLICY REQUIRED BY LENDER | Costs will vary depending on coverage selected by the purchaser. Check with insurance agent. |
LEGAL
| PURCHASER’S ATTORNEY | $3,500-$4,500 |
| BANK’S ATTORNEY | $1,000-$2,000 |
TAXES
| MANSION TAX | Mansion Tax is a percentage of your purchase price, depending on the purchase price 1% of the gross purchase price for purchases between $1,000,000 and $1,999,999 1.25% of the gross purchase price for purchases between $2,000,000 and $2,999,999 1.5% of the gross purchase price for purchases between $3,000,000 and $4,999,999 2.25% of the gross purchase price for purchases between $5,000,000 and $9,999,999 3.25% of the gross purchase price for purchases between $10,000,000 and $14,999,999 3.5% of the gross purchase price for purchases between $15,000,000 and $19,999,999 3.75% of the gross purchase price for purchases between $20,000,000 and $24,999,999 3.9% of the gross purchase price for purchases of $25,000,000 and up |
| MORTGAGE RECORDING TAX | Mortgage less than $500,000: 1.8% of the mortgage amount (minus $30 for 1 or 2 family dwellings) Mortgage $500,000 and above on 1-3 family residential dwelling: 1.925% of the mortgage amount (minus $30 for 1 or 2 family dwellings) Mortgage on all other property $500,000 and over: 2.8% of the mortgage amount |
| WORKING CAPITAL CONTRIBUTION | One time charge of 1-2 months of common charges |
ADDITIONAL CLOSING COSTS FOR NEW DEVELOPMENT
| RESIDENT MANAGER’S UNIT | Purchaser pays for this in some cases. The unit is allocated a dollar value by the sponsor and the purchser’s portion is calculated as a percentage of the common interest associated with the unit. |
| WORKING CAPITAL CONTRIBUTION | One time charge of 1-2 months of common charges |
| SPONSOR’S ATTORNEY | $4,000-$4,500 |
| SPONSOR’S TRANSFER TAXES | Sponsor’s transfer taxes are determined by first calculating the transfer taxes on the purchase price using the following guidelines: NYC Transfer Tax: 1% of the purchase price if $500,000 or below 1.425% of the purchase price if above $500,000 NYS Transfer Tax: $4 per $1000 of purchase price (.4% of purchase price). For sales over $3,000,000, the NYS transfer tax will increase by 0.25%. Once the figure of NYC and NYS taxes is determined, then the taxes are re-calculated based on the sum of the original purchase price and the NYC and NYS transfer taxes. |
| MISCELLANEOUS SPONSOR FEES | $1,000-$2,000; varies depending on offering plan and negotiated terms |
TOWNHOUSE CLOSING COSTS
TITLE INSURANCE
| FEE TITLE INSURANCE | Varies depending on the purchase price and regulated by the state, but is typically approximately .45% of the purchase price.It is best to use an online rate calculator from a reputable title company website. |
| MORTGAGE TITLE INSURANCE | Reduced rate applies for simultaneous purchase and mortgage (if applicable). It is best to use an online rate calculator from a reputable title company website. |
| RECORDING FEES | $250-$750 |
| MUNICIPAL SEARCH FEES | $350-$500 |
| TITLE ENDORSEMENTS | $75-$150 |
HOMEOWNERS INSURANCE
| HO6 POLICY REQUIRED BY LENDER | Costs will vary depending on coverage selected by the purchaser. Check with insurance agent. |
LEGAL
| PURCHASER’S ATTORNEY | $3,500-$4,500 |
| BANK’S ATTORNEY | $1,000-$2,000 |
TAXES
| MANSION TAX | Mansion Tax is a percentage of your purchase price, depending on the purchase price 1% of the gross purchase price for purchases between $1,000,000 and $1,999,999 1.25% of the gross purchase price for purchases between $2,000,000 and $2,999,999 1.5% of the gross purchase price for purchases between $3,000,000 and $4,999,999 2.25% of the gross purchase price for purchases between $5,000,000 and $9,999,999 3.25% of the gross purchase price for purchases between $10,000,000 and $14,999,999 3.5% of the gross purchase price for purchases between $15,000,000 and $19,999,999 3.75% of the gross purchase price for purchases between $20,000,000 and $24,999,999 3.9% of the gross purchase price for purchases of $25,000,000 and up |
| MORTGAGE RECORDING TAX | Mortgage less than $500,000: 1.8% of the mortgage amount (minus $30 for 1 or 2 family dwellings) Mortgage $500,000 and above on 1-3 family residential dwelling: 1.925% of the mortgage amount (minus $30 for 1 or 2 family dwellings) Mortgage on all other property $500,000 and over: 2.8% of the mortgage amount |
ADDITIONAL CLOSING COSTS FOR NEW DEVELOPMENT
| SPONSOR’S ATTORNEY | $4,000-$4,500 |
| SPONSOR’S TRANSFER TAXES | Sponsor’s transfer taxes are determined by first calculating the transfer taxes on the purchase price using the following guidelines: NYC Transfer Tax: 1% of the purchase price if $500,000 or below 1.425% of the purchase price if above $500,000 NYS Transfer Tax: $4 per $1000 of purchase price (.4% of purchase price). For sales over $3,000,000, the NYS transfer tax will increase by 0.25%. Once the figure of NYC and NYS taxes is determined, then the taxes are re-calculated based on the sum of the original purchase price and the NYC and NYS transfer taxes. |