The fees and costs associated with real estate closings are very different as between sellers & buyers and generally associated with the price of the property or mortgage amount.
Buyers costs
Most of the buyers' costs are usually payable to the lender or it's affiliates. The bank or mortgage broker will give the buyer a "Good Faith Estimate Of Closing Costs". This form will (if prepared properly) advise the buyer as to MOST of the closing costs associated with the purchase. The one item that surprises more buyers than others is the "Mortgage recording tax" which, in NYC is 1.75% of the amount borrowed up to $500,000 and 2.125% over $500,000. A buyer will also pay for title insurance (for houses & condos) or a lien search (for coops). Title insurance generally costs appx. $1017 for sales up to $200,000 and $4.00 per thousand over $200,000. In addition there are various miscellaneous and recording charges collected by the title closer. For coops, the lien search usually costs about $250.00 where there is a bank involved.
For coops & condos there are sometimes move-in/move-out fees &/or deposits. Also, in coop purchases, the buyer will often pay the coop atty. or managing agent a fee of about $250 for review of the "recognition agreement". NOTE: With sponsor sales of coops and condos and with new construction, there are often additional costs (customarily paid by the seller) which may be passed on to the buyer(s).
Mansion tax. On purchases in excess of $1,000,000 the buyer will pay a "mansion tax" of 1% of the purchase price.
Sellers costs
One to three family houses of $500,000 or less; Seller(s) will pay a NYC transfer tax (for NYC transfers) of 1% of the sales price plus $4.00 per thousand to NY State. Over $500,000 the NYC tax is 1.425%. Over three families, the NYC tax is 1.425% and 2.625% respectively. For coop sales the seller will usually pay a fee to he transfer agent for the coop and a fee to the old lender's atty. to attend the closing.
Attorneys fees
As a buyer or seller, you will pay your own attorneys fees. These fees are negotiated at the outset of the transaction. There is no set "schedule" of fees, but from my experience, an experienced Real Estate attorney usually charges a fee of between $1,000 and $4,000 depending upon the price and complexity of the transaction.
Please feel free to contact me via telephone or e-mail for further discussion of any of the above.
GOOD LUCK!!!
