Coop Closing Costs

When purchasing a cooperative apartment (co-op) in New York City, buyers incur various closing costs. These costs can vary depending on factors such as the purchase price, the specific co-op building, and the terms negotiated between the buyer and the seller. Here are some common buyer closing costs for purchasing a co-op in NYC:

1. Purchase Application Fee: Many co-op buildings in NYC charge a non-refundable purchase application fee, which covers the administrative costs associated with reviewing and processing the buyer’s application. This fee can range from a few hundred dollars to a few thousand dollars.
2. Co-op Board Fees: Co-op boards often charge fees to cover the costs of conducting background and credit checks, as well as conducting interviews with potential buyers. These fees can vary but typically range from a few hundred dollars to a few thousand dollars.
3. Attorney Fees: It is advisable to hire a real estate attorney to assist with the purchase process. Attorney fees can vary depending on the complexity of the deal and the attorney’s hourly rate but may range from a few thousand dollars to several thousand dollars.
4. Appraisal Fee: Many co-op buildings require an appraisal to determine the fair market value of the apartment. The appraisal fee is typically paid by the buyer and can range from a few hundred dollars to over a thousand dollars.
5. Financing Costs: If you are obtaining a mortgage, there may be fees associated with the loan, such as an application fee, loan origination fee, credit check fee, and appraisal fee. These costs can vary depending on the lender and loan program.
6. Title Search and Insurance: Buyers may be responsible for the cost of a title search to ensure there are no liens or encumbrances on the property. Additionally, the buyer may choose to purchase title insurance, which protects against potential title issues. The costs for title search and insurance can vary but typically range from a few hundred dollars to a few thousand dollars.
7. Mortgage Recording Tax: If you are obtaining a mortgage, you may be subject to the New York State mortgage recording tax. The tax rate is typically a percentage of the loan amount and varies depending on the loan size and location.
8. Move-in Fees and Deposits: Some co-op buildings in NYC may charge move-in fees or require buyers to pay refundable deposits to cover potential damages or ensure compliance with building rules and regulations. These fees can vary depending on the building.

It’s important to note that these are general closing costs, and the specific expenses can vary based on the individual co-op building and the terms of the purchase. Consulting with a real estate attorney and reviewing the co-op’s offering plan and financials will provide more accurate estimates of your specific closing costs as a co-op buyer in New York City.