Coop Closing Costs

The closing costs for a coop seller in New York City can vary depending on various factors such as the purchase price of the coop, the specific coop building, and any negotiated agreements between the buyer and seller. However, I can provide you with a general overview of the common closing costs that sellers typically encounter in a coop transaction in New York City:

1. Broker’s Commission: If you have engaged a real estate broker to help sell your coop, you may be responsible for paying their commission. The commission is usually a percentage of the sale price, typically around 5-6% of the total sale price.
2. Flip Tax: Some coop buildings charge a flip tax, which is a fee imposed on the seller upon the sale of the coop unit. The flip tax can vary significantly from one building to another, and it is typically calculated as a percentage of the sale price or as a flat fee.
3. NYC Transfer Taxes: In New York City, sellers are responsible for paying transfer taxes. The transfer tax rate is based on the sale price of the coop unit. As of my knowledge cutoff date in September 2021, the transfer tax rate for properties priced below $500,000 is 1% of the sale price, and for properties priced above $500,000, the rate is 1.425% of the sale price.
4. Attorney Fees: It is common for sellers to hire an attorney to handle the legal aspects of the coop sale. Attorney fees can vary depending on the complexity of the transaction and the attorney’s hourly rate or flat fee structure.
5. Coop Fees: Coop sellers might have to pay various coop-related fees, such as application fees, processing fees, or any outstanding charges owed to the coop board. These fees can vary based on the specific coop building.
6. Mortgage Payoff: If you have an outstanding mortgage on the coop unit, you will need to pay off the remaining balance, including any prepayment penalties or fees associated with the loan.

It’s important to note that this is just a general overview, and the actual closing costs can vary based on individual circumstances. It is recommended to consult with a real estate attorney or a qualified real estate professional for precise information regarding your specific coop sale in New York City.