Buying in Lower Manhattan is exciting, but the closing table can feel like a maze of line items. You want to know exactly what you will owe, how condo and co-op costs differ, and when to get firm numbers. You are not alone. Most buyers are surprised by which fees apply in Manhattan and which do not. In this guide, you will learn the main categories of buyer closing costs, condo vs. co-op differences, and a step-by-step way to estimate your cash to close. Let’s dive in.
What buyer closing costs include
Closing costs in Lower Manhattan generally fall into five buckets. Your mix will depend on condo vs. co-op and whether you finance.
Statutory taxes and transfer charges
- New York State “mansion tax” may apply once your price meets the statutory threshold. This is common in Manhattan. Confirm current rules before you buy.
- State and NYC real property transfer taxes often apply to condo purchases because they involve a deeded real estate transfer.
- Many co-op sales transfer corporate shares and a proprietary lease, not real property. In those cases, state and city real property transfer taxes typically do not apply. Buildings can have separate transfer or flip fees. Your attorney will confirm.
Mortgage and lender costs
- Mortgage recording tax applies when a mortgage is recorded. Manhattan’s rate is a material line item. Verify the current percentage before you commit.
- Lender fees can include origination points, application, underwriting, processing, and commitment fees.
- Appraisal and credit report fees are common for financed purchases.
- A lender’s title policy may be required by your bank.
Title and ownership protections
- For condos, buyers typically purchase an owner’s title insurance policy alongside a title search and commitment. This protects against title defects.
- For co-ops, title insurance on the ownership interest is less common because you are buying shares and a lease. Ask your attorney and lender what they require.
Legal, recording, and closing services
- Buyer’s attorney fee covers contract negotiation, building document review, board package review, and closing.
- If you finance, your lender may charge a separate bank attorney fee.
- Recording and clerk fees apply to recorded documents in condo deals. Your title company will estimate these.
Building and move-in items
- Board application fees, move-in or elevator fees, building transfer fees, and alteration deposits are common.
- Co-ops may impose a flip tax or other building-level charges per the bylaws. Who pays depends on the building.
- Expect prorations for taxes and building charges at closing.
Condo vs. co-op: what changes in Lower Manhattan
Buying a condo in Tribeca or a co-op in the Financial District can look similar at first. The legal structure drives key cost differences.
Transfer taxes and mansion tax
- Condos: Usually subject to New York State and NYC transfer taxes. The state mansion tax may also apply at or above the statutory threshold. Confirm today’s brackets before budgeting.
- Co-ops: Often not subject to real property transfer taxes because there is no deed. Buildings can still charge transfer or flip fees. Your attorney and the managing agent will confirm.
Title insurance and title work
- Condos: Owner’s title insurance, a title search, and a title commitment are standard.
- Co-ops: Title insurance is less common for the ownership interest. Your bank may still require certain protections. Ask your lender and attorney early.
Board approvals and fees
- Co-ops: Expect a detailed board package, application fees, and a board interview. These steps can add time and cost.
- Condos: Approval is usually more straightforward. Move-in and application fees still apply and vary by building.
Timing and potential holdbacks
- Co-ops: Closing timing often depends on the board’s schedule and building documentation. Allow for potential delays.
- Condos: Timing centers on title clearance and document recording. Both property types can require holdbacks if issues arise.
How to estimate your cash to close
Use this repeatable process to build a realistic estimate. Then refine it with formal documents.
- Start with price and down payment
- Purchase price minus your down payment equals the loan amount if you finance.
- Add your lender’s items
- Use your lender’s Loan Estimate for origination points (if any), application, underwriting, processing, credit report, appraisal, prepaid interest, and required escrow deposits.
- Add taxes and transfer charges
- For condos: add any applicable state and city transfer taxes plus the mansion tax if your price meets the threshold.
- For co-ops: confirm building transfer or flip fees and whether real property transfer taxes apply in your case.
- Add title and ownership protections
- For condos: add owner’s title insurance, the lender’s policy if required, and title search/commitment costs.
- For co-ops: add any lender-required protections or legal opinions instead of an owner’s title policy.
- Add legal, recording, and service fees
- Buyer’s attorney, bank attorney (if any), and recording/clerk fees.
- Add building fees and move-in costs
- Board application, move-in/elevator fees, potential flip tax if buyer-paid, and any building processing or sponsor fees.
- Add prorations and initial escrows
- Property tax prorations, condo common charges or co-op maintenance prorations, and initial tax and insurance escrow deposits.
- Include a buffer
- Add a contingency for small surprises. In Manhattan resales, a buffer of about a few thousand dollars is often prudent.
What typical ranges look like
These ranges are common in Manhattan, but your exact numbers will come from your lender, title company, attorney, and the building.
- Buyer’s attorney: often low thousands to several thousand dollars. Many closings land roughly in the 1,500 to 5,000 dollar range, with complex co-ops or sponsor resales higher.
- Lender fees and points: processing and underwriting can be a few hundred dollars, and origination points, if chosen, can range by program. Confirm in your Loan Estimate.
- Appraisal: commonly about 500 to 1,500 dollars depending on unit size and complexity.
- Title insurance (condos): premiums follow published schedules. Ask your title company for a quote tied to your price.
- Mortgage recording tax: significant in Manhattan and depends on loan size. Verify the current rate before budgeting.
- State and city transfer taxes (condos): material on higher-priced deals. Check the current schedules.
- Mansion tax: historically applies at or above 1,000,000 dollars. Confirm the current threshold and any progressive rates.
- Building fees: application and move-in can be a few hundred to several thousand dollars. Flip taxes or sponsor transfer fees can be several thousand to tens of thousands depending on bylaws and price.
- Escrows and prepaid items: lenders typically require several months of property taxes and insurance in escrow. Timing affects the amount.
Example estimates in practice (illustrative only)
Use these frameworks to structure your own estimate. Replace placeholders with your documents.
Condo example method
- Price: 1.75M (example)
- Down payment: 25 percent (example) → loan amount = price minus down payment
- Add lender items: points if any, appraisal, underwriting, application, credit report, prepaid interest, and escrow deposits from the Loan Estimate
- Add taxes: state and city transfer taxes per current schedules and mansion tax if the price meets the threshold
- Add title: owner’s policy, lender’s policy if applicable, title search and commitment
- Add legal and recording: buyer’s attorney, bank attorney, recording and clerk fees
- Add building fees: condo application and move-in fees, any sponsor or building transfer fees, plus any assessments
- Add prorations: property tax and common charges
- Add buffer: for minor surprises
Result: total cash to close equals down payment plus all added costs and prorations, minus any seller credits.
Co-op example method
- Price: 1.25M (example)
- Down payment: 30 percent (example) → loan amount if financing = price minus down payment
- Likely no state or city real property transfer taxes, since the sale is a stock and lease transfer; confirm with counsel
- Add lender items: points if any, appraisal, underwriting, application, credit report, prepaid interest, escrow deposits
- Add legal: buyer’s attorney and any bank attorney fees
- Add building fees: co-op board application, move-in fees, and any flip tax per bylaws. Confirm if the flip tax is a buyer charge, seller charge, or split
- Add prorations: maintenance and property tax components as applicable
- Add buffer: for board or building processing items
Result: total cash to close equals down payment plus noted fees and prorations, minus any credits.
Important: These are example structures only. For exact amounts, rely on your Loan Estimate and Closing Disclosure from your lender, a title premium quote and commitment for condos, confirmation from the building’s managing agent, and your attorney’s final closing statement.
When to involve each professional
Before you offer
- Talk to a lender for prequalification or pre-approval. Ask for a sample Loan Estimate at your target loan amount to preview closing charges.
- Ask your agent to flag building-level fees, flip taxes, or sponsor clauses in Lower Manhattan buildings you are considering.
After your offer is accepted
- Hire a buyer’s attorney right away. They will review the contract, the building’s bylaws or proprietary lease, any assessments, and closing procedures.
- For condos, your attorney or title company will order a title search and provide a title premium quote and commitment.
- For co-ops, start the board package early. Board timelines can add weeks.
- Your lender will deliver an official Loan Estimate within three business days of application and a Closing Disclosure before you close.
One week from closing
- Review your attorney’s buyer closing statement and the seller’s final statement.
- Confirm wire instructions and exact funds to bring to closing. Certified funds or wire transfers are standard in Manhattan.
Pitfalls to avoid
- Mixing up condo and co-op costs. Condos usually have transfer taxes and title insurance. Co-ops often have more building-level fees and board steps.
- Underestimating the mortgage recording tax on large loans.
- Forgetting prorations or required escrow deposits.
- Delaying the board package for a co-op, which can push your closing date.
- Skipping a buffer for minor variances in final statements.
Quick checklist for a tailored estimate
- From your lender: Loan Estimate and, later, Closing Disclosure
- From your title company (condo): title commitment and owner/lender policy quotes
- From your attorney: draft and final closing statements, proration checks
- From building management: current owner ledger, any assessments, flip tax language, move-in policies and fees, sponsor or transfer fees
- From official sources: current state and city transfer tax schedules and mortgage recording tax rates
Ready to clarify your numbers for a specific Lower Manhattan property? Bring the address, your target price, and your down payment plan. We will help you surface building-level fees quickly and connect you with lenders and attorneys who work these Manhattan closings every day.
If you are comparing a Tribeca condo to a Financial District co-op, the cost differences can be meaningful. A short call can save you weeks and reduce your surprise at the closing table. Work with a team that translates this complexity into clear, confident decisions.
Have questions about your cash to close for a specific address? Reach out to The Forray Team. Work With Us.
FAQs
What are typical buyer closing costs for condos in Lower Manhattan?
- Condos often include state and city transfer taxes, the state mansion tax if the price meets the threshold, title insurance, lender fees if you finance, attorney fees, recording fees, building application and move-in charges, prorations, and initial escrow deposits. Exact amounts depend on price, loan size, and building policies.
How do co-op buyer closing costs differ from condos in Manhattan?
- Co-ops usually do not incur state and city real property transfer taxes because there is no deeded transfer. Instead, you may see board application fees, move-in fees, and a flip tax per the bylaws. Title insurance on the ownership interest is less common, and board timelines can affect closing.
What is the New York “mansion tax” and when does it apply?
- The mansion tax is a New York State charge that historically applies once a purchase price meets a statutory threshold common in Manhattan. The rates and brackets can change, so confirm the current schedule before budgeting.
How can I get exact dollar amounts for my closing?
- Rely on your lender’s Loan Estimate and later Closing Disclosure, a title premium quote and commitment for condos, written confirmation from the building’s managing agent for any transfer or move-in fees, and your attorney’s final closing statement. These documents are authoritative for funds to wire.
When should I start my co-op board package in Lower Manhattan?
- Start as soon as your offer is accepted and your attorney has reviewed building documents. Board review and interview timing can add weeks, so early preparation reduces delays.
Do I need owner’s title insurance for a co-op purchase?
- Owner’s title insurance is standard for condos. For co-ops, your interest is shares and a proprietary lease, so owner’s title insurance is less common. Ask your attorney and lender what they require for your transaction.
