What is the difference between a co-op and a condo in NYC?

Co-ops (approximately 75% of NYC apartment inventory): You buy shares in a corporation that owns the building and receive a proprietary lease. Board approval is required. Condos (approximately 25% of inventory): You own your individual unit with a deed. No board approval is required. Co-ops typically have stricter financial requirements and higher monthly fees that include property taxes, while condos offer more subletting flexibility and different closing costs.

What are typical financial requirements for buying a co-op in NYC?

Co-ops typically require a 20-50% down payment plus post-closing liquidity (cash reserves often equal to 1-2 years of maintenance). Condos are more flexible, with 10-20% down payment options common. Both property types require lenders to evaluate debt-to-income ratios and credit history. Individual buildings may have additional requirements, so always verify with the listing agent before making an offer.

How long does it take to close on a property in NYC?

Closing timelines vary by property type. Condos and townhouses typically close in 30-45 days from signed contract. Co-ops take longer: 60-90 days or more, because the board package must be assembled and submitted, the board must review it, and an interview must be scheduled before approval. All-cash purchases close faster than financed purchases regardless of property type.

What closing costs should I expect when buying in NYC?

NYC closing costs for buyers range from approximately 2-6% of the purchase price depending on property type and financing. Condo buyers pay title insurance, NYC/NYS transfer taxes paid by the seller, mortgage recording tax (if financing), and mansion tax on purchases over $1M. Co-op buyers do not pay title insurance or mortgage recording tax but do pay attorney fees, application fees, and the mansion tax on purchases over $1M. Both need a real estate attorney, which typically costs $3,000-4,500 in NYC.

Can I see NYC homes before they hit the market?

Yes. Through the RLS Coming Soon listing status and Keller Williams pre-market tools, Milton Coste can show buyers properties before they officially go active on the MLS. Coming Soon listings appear on RLS, Zillow, Trulia, and StreetEasy with full photos, details, and pricing. Showings and offers cannot be accepted until the listing goes active, but buyers get early access to prepare their offer strategy before competition arrives.

What is the FARE Act and how does it affect NYC renters?

The FARE Act (Fairness in Apartment Rental Expenses Act) took effect June 11, 2025. It requires that whoever hires a broker, typically the landlord, pays the broker fee. Tenants can no longer be required to pay broker fees on landlord-engaged broker listings. Tenant-engaged brokers can still charge tenants. The FARE Act applies to rental transactions only, not to buying or selling.

What is a flip tax in an NYC co-op?

A flip tax is a fee some co-op buildings charge when a unit is sold. It typically ranges from 1-3% of the sale price, though some buildings calculate it per share. The seller usually pays it, though some buildings assign it to the buyer or split it. On a $1.2M sale with a 2% flip tax, the seller owes $24,000 to the building before taking proceeds. Always verify flip tax policies before making an offer or listing.

Do I need a real estate attorney to buy or sell in NYC?

Yes. Unlike most US states, New York real estate closings are attorney-driven. Both the buyer and seller are represented by licensed real estate attorneys who review the contract, negotiate riders, handle due diligence, coordinate with the lender and title company, and attend the closing table. Attorney fees in NYC typically run $3,000-4,500 per side. Title companies play a secondary role compared to states with escrow-based closings.

NYC Closing Cost Calculator 2026 | Co-op, Condo & Townhouse

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NYC Closing Costs by Property Type

Co-op Buyer Costs

Attorney fee$1,800-$3,000
Bank attorney (if financing)$500-$1,500
Co-op application fee$500-$2,000
Move-in deposit$500-$1,000
UCC filing~$125
Lien search~$350
Mansion tax (over $1M)1.00-3.90%
No title insurance requiredSaved
No mortgage recording taxSaved

Condo Buyer Costs

Attorney fee$2,000-$4,000
Title insurance~0.5-1% of price
Title search~$500
Mortgage recording tax1.80-1.925%
Condo application fee$500-$1,500
Move-in deposit$500-$1,000
Mansion tax (over $1M)1.00-3.90%
NYC transfer tax (new dev)1.0-1.425%

NYC Mansion Tax Rates (2026)

Purchase Price	Mansion Tax Rate	Tax on That Amount
Under $1,000,000	None	$0
$1,000,000 - $1,999,999	1.00%	$10,000 - $19,999
$2,000,000 - $2,999,999	1.25%	$25,000 - $37,499
$3,000,000 - $3,999,999	1.50%	$45,000 - $59,999
$4,000,000 - $4,999,999	2.25%	$90,000 - $112,499
$5,000,000 - $9,999,999	3.25%	$162,500 - $324,999
$10,000,000 - $14,999,999	3.50%	$350,000 - $524,999
$15,000,000 - $19,999,999	3.75%	$562,500 - $749,999
$20,000,000 and above	3.90%	$780,000+

Co-ops vs. Condos: The Hidden Cost Difference

Co-op buyers skip title insurance and mortgage recording tax, which can save $8,000-$20,000 on a $750,000 purchase. But co-ops add flip taxes when you sell (typically 1-3% of price or profit), and buildings vary widely on application and move-in fees. Condos cost more to buy but offer more flexibility: no board approval, subletting without restriction, and no flip tax obligation. In my 25+ years of NYC transactions, the right choice almost always depends on how long you plan to hold the property.