What is a Co-op Apartment and What are the Closing Costs for a Manhattan Co-op Apartment?

What is a Co-op Apartment and What are the Closing Costs for a Manhattan Co-op Apartment?

A co-op apartment is a unit in a building that is owned by a corporation and operates as a housing cooperative.  This corporation (usually an LLC) is made up of shareholders (apartment owners) who in turn own a piece of the corporation.  As a purchaser, you own shares of a corporation that owns the building, and you are issued a proprietary lease by the LLC.  There is no deed issued.

In NYC condos, you own your unit as well as part of all common areas of the building, and more importantly purchasers are issued a deed.

Further Reading:  What Home Buyers Should Consider When Deciding What Type of Manhattan Housing to Buy

Manhattan Coop apartment

The following guides will give you general closing costs associated with the purchase or sale of a co-op apartments in New York, Manhattan. Please note that these are estimates and potential buyers or sellers should consult their real estate attorney and financial advisor for specifics.  We do not represent that these cover the spectrum of potential costs, but rather is a general guide.

Manhattan Co-op Closing Costs for Sellers:

1.  Typically 6% depending on the size and marketing

2.  Own Attorney:  $2000-$2500

3.  Co-op Attorney: $500+

4.  Flip Tax:  1%-3% of sales price (if applicable)

5.  Stock Transfer tax: $.05 per share (if applicable)

6.  Move Out Deposit:  $500-$1000 (refundable)

7.  NYC Transfer Tax: 1% of price <$500,000; 1.425% of price >$500,000+ and $100 filing fee

8.  NY State Transfer tax:  $2 per $500 of price or .4% of purchase price

UCC-3 Filing Fee: $75+

 

Manhattan Co-op Closing Costs for Buyers:

1.  Buyer’s Attorney: $2000-$2500

2.  Bank Fees:  Points- 0%-3% of the loan amount

3.  Application & Credit Check: $500+

4.  Bank Attorney:  $750+

5.  Misc. Bank Fees:  $500+

6.  Lien Search:  $300+

7.  UCC Filing:  $75+

8.  Appraisal Fee: $400+

9.  Short Term Interest:   Equal to interest for balance of month in which you close

10.  Move In Deposit: $500-$1000 (refundable)

11.  Aztec Recognition Agreement Fee:  $250+

12.  Maintenance Adjustment:  Monthly carrying costs for maintenance and assessments if any, are pro-rated depending on the close date

13.  Mansion Tax:  1% of entire purchase price for $1 million +

 


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Further Reading:  How to Buy an Apartment in Manhattan and Get the Best Interest Rate

The Importance of Finding the Best Representation When Buying Real Estate for Sale in Manhattan

What Home Buyers Should Consider When Deciding What Type of Manhattan Housing to Buy

Work with a trusted, Luxury Manhattan real estate broker specializing in Manhattan aptsNYC brownstones, and dog friendly apartments for rent & sale:

Soho LoftsTribeca Condos - WestVillage Apartments - Upper East Side NYC Apartments-Upper West Side Apartments Battery Park City Apartments -Chelsea ApartmentsGramercy Apts - Midtown East NYC - Midtown West NYC - Murray Hill in NYC - Lower East Side NYCEast Village Apartments

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