NYC Property Sales Guide

The Budget: Location, size, amenities, building type, school blocks and even proximity to public transportation are crucial to determining which property will fit you. We suggest that buyers review financing options to determine what amount of money they can put towards a deposit and then determine what they can afford for a monthly mortgage payment. Better exactly mapping layout if they pre-qualify for mortgage values in order to know what budget they will be working within.

Type of Property: The first thing to determine is exactly the type of property you’d like to buy; would you like an apartment, condominium, coop or commercial property?

Apartment Purchase: For apartment purchases there is an approval process, besides down payment required, buyers are expected to have complete control over any renovations they wish to make. Maintenance costs are the total responsibility of an owner and with this the owner gets total control over maintenance and repairs. Transfer of deeds or re-selling an apartment do not require approval. The size of a property can vary according to a budget and income of the property.

Condominium Purchase: Unlike an apartment, condominium built with joint ownership of the common building areas, i.e. entrance areas, hallways and recreational areas etc. This common plan is considered joint property, because of this fact, owner’s have dynamic right to use the property any way he/she sees fit. Owners are subject to pay property taxes which are separate for each individual unit & monthly mortgage payment, in addition to common fees for common components. Monthly maintenance fees are generally equal to maintenance costs of a condo unit.

Coop Purchase: Buying a coop is unique, but Hillel Realty Group’s team of qualified agents can help. When purchasing a cooperative apartment, the purchaser is actually purchasing shares in a corporation, the shares correspond to the unit in which you live, apart from this share a monthly mortgage payment and maintenance fees for the building. Maintenance fees are sometimes high but, building mortgage payments and real estate taxes generally result in higher tax deductibles.

Estimated Fees Schedule Matrix

Cooperative Apartment Fees Breakdown

Fee Type & Category	Estimated Costs / Parameters
For Seller:
Broker Fees	Are typically 6% – Fees vary according to property size and amount of marketing.
Attorney Fees	Approximately $1,500
Managing Agent	$450
Flip Tax	Consult Managing Agent
Stock Transfer Tax	$.05 per share
Move Out Deposit Fee	$1,000
New York City Transfer Tax	1.00% of price up to $500,000, 1.425% of entire price when it exceeds $500,000
New York State Transfer Tax	0.4% ($2.00 per $500)
Payoff Bank Attorney	If seller has mortgage: $500
UCC-3 Filing Fee	If seller has mortgage: $100
For Purchaser:
Own Attorney Fee	Approximately $1,500
Bank Fees	$2,000 (Application, Credit/Appraisal, Bank Attorney/Misc/Escrow Fees)
Short Term Interest	Can month max* (Paid with the month of closing)
Move In Deposit	$1,000
Managing Agent or Co-op Attorney Fee	$500
Lien Search	$350
Maintenance Adjustment	One month max
Mansion Tax	1% of entire price when price exceeds $1,000,000

Condominium & Townhouse Fees Breakdown

Fee Type & Category	Estimated Costs / Parameters
For Seller:
Broker Fees	Are typically 6% – Fees vary according to property size and amount of marketing.
Attorney Fees	Approximately $1,500
Managing Agent	$350
Move Out Deposit Fee	$1,000
New York City Transfer Tax	1.00% of price up to $500,000, 1.425% of entire price when it exceeds $500,000
New York State Transfer Tax	0.4% ($2.00 per $500)
Miscellaneous Title Company Fees	If seller has mortgage: $200
For Purchaser:
Own Attorney Fee	Approximately $1,500
Fee & Rates	Points Max
Bank Fees	$2,000 (Application, Credit & Appraisal, Bank Attorney/Misc/Escrow Fees)
Short Term Interest	Can month max* (Paid the month of closing)
Real Estate Tax Escrow	2-6 months
Recording Fee	$700
Mortgage Tax	1.75% of mortgage on loans under $500,000 or 1.875% of entire amount on loans over $500,000
Doc Title Insurance	Approximately $450 per $100,000
Mortgage Title Insurance	Approximately $200 per $100,000
Miscellaneous Title Charges	$500
Managing Agents Fee	$250
Adjustments	Common charges: One month max | Real Estate Taxes: 1 to 6 months
Mansion Tax	1% of entire price when price exceeds $1,000,000

Expect to pay dynamic months Real Estate Taxes. These taxes are continuous between seller so an adjustment and cycle is handled by banks.

Note: When purchasing a condo from a Sponsor, the purchaser will be required to pay New York City and New York State Transfer Taxes, overall about 1.4% to 1.8%. Also, buyers are required to pay sponsor’s attorney fee; this fee is approximately $1,500.

Multi-Family Residential / Commercial Property Fees Breakdown

Fee Type & Category	Estimated Costs / Parameters
For Seller:
Broker Fees	Are typically 6% – Fees vary according to property size and amount of marketing.
Attorney Fees	Approximately $2,000
New York City Transfer Tax	1.425% of price up to $500,000, 2.625% of entire price when it exceeds $500,000
New York State Transfer Tax	0.4% ($2.00 of price)
Payoff Bank Attorney	If Seller has mortgage: $500
Misc. Title Transfer Security Deposit	T.B.D.
For Purchaser:
Own Attorney Fee	Approximately $2,000
Fee & Rates	Points Max
Bank Fees	$3,000 – $10,000 (Application, Credit & Appraisal Bank Attorney/Misc/Escrow Fees)
Short Term Interest	Can month max* (Paid with the month of closing)
Mortgage Tax	2.75% of mortgage amount on loans over $500,000
Real Estate Tax Escrow	2-6 months
Fee Title Insurance	Approximately $450 per $100,000
Mortgage Title Insurance	Approximately #200 per $100,000
Miscellaneous Title Charges	$1,200
Adjustments	Max 1-12 Mo. Real Estate Taxes

What is a closing?

A closing is where a buyer gives the seller money in exchange for ownership and title to a particular property. This bargained for exchange, or consideration, transfers ownership of the property. The seller also needs to sign over other documents including a deed. The place of closing is normally at the bank attorney’s office. The parties present will be: seller, bank attorney, real estate brokers, seller’s attorney, buyer’s attorney and the closer.

Buyers need to apply for a mortgage as soon as the contract is signed by both parties. The mortgage process takes up to 45 days and can involve several procedures:

• The mortgage broker compiles the buyer’s financial information and then prepares the loan application.
• The bank sends an appraiser to assess the property.
• The underwriter reviews the loan and issues a commitment letter.

If buying an apartment, coop, condo or any other property with a board or association, prepare your application package with your Hillel Realty Group broker. These packages tend to vary from building to building. Most boards use the same financial requirements as the bank. Keep an extra copy of your mortgage application and any related documentation. Reports are required to get personal, professional and financial letters of reference. If renting, get a letter of reference from your current landlord. Ask what information is needed and for copies of sample reference letters. The board package is important, therefore, answer all questions in a clear, concise manner and give an accurate disclosure of your financial qualifications. Before submitting your application package, write a cover letter, organize the presentation and review it with your Hillel Realty Group broker.

The board package is submitted after a buyer receives his/her mortgage-loan commitment letter. It is submitted to a building’s Managing Agent. The Managing Agent checks the application, evaluates credits and references, and then submits the package to the board. The board then reviews the completed package. Additional information may be requested or if the package is passed, an interview is scheduled. There is either an interview committee that approves new applicants or a board will do it during its monthly meetings. Your Hillel Realty Group broker can assist you as to the date, time and any other preparations for your interview.

Closing is scheduled after the board approves an application package and completes the interview process. This generally takes 2 weeks for final approval and can vary depending on the availability of the parties involved; i.e. managing agent, buyer, seller, lawyers and banks.

General Closing Costs Defined:

Additional Fees: Consumers/borrowers are required to pay additional fees. Some of these including Wire Fees, Tax Service, Survey Costs, Flood Certification, Settlement Charges, Messenger Fees, Sub-Escrow Fees, and Transfer Tax. Ask your broker to explain these fees.

Appraisal Fee: Fee charged which estimates whether or not a property is worth enough to support a loan. A qualified appraiser will look over the property and produce a report.

Attorney Fee: Fees paid to attorney representing you in real estate purchase (some closes require you to pay bank attorney fees or with condos, sponsor fees for sponsor attorney maybe required). Fees vary according to type of property and $ value of the property.

Condo Board Application or Co-op flip tax: Fees charged for processing condo applications or coop shares.

Credit Report: generally between $35 – $100 per report.

Document Preparation Fee: fee charged by bank or mortgage company for preparation of paperwork.

Escrows (Taxes, Insurance): In this case money figured into a mortgage for certain conditions like taxes and insurance etc. (See real estate terms defined for a more complete definition).

Inspection Fee: fee for inspection of property to make sure it is up to code and livable.

Homeowner’s Insurance: is required to protect against property damage from hazards; i.e. fires, floods etc.

Mortgage Insurance: Usually loans made from a down payment of less than 20% require mortgage insurance. This protects a landlord if a borrower defaults on home loan.

Origination Fee/Points: Depending on the type of a loan and the rates a mortgage lender chooses, he/she may pay points: 1 point equals 1% of the total loan amount.

Prepaid Interest: This amount pays the interest due from the date of funding to the end of the current month.

Recording/Transfer Fees: This covers the costs of changing the property title in official county records.

Title Insurance and Search: Fees that are charged for a title search and insurance fee. A title search is used to verify that that the seller is the real owner of the property being sold and that the seller has the right to sell it. Title insurance protects a lender in the event of a lien or other problems with the title for the property in question, that was not disclosed at the time of sale.

Time Until Closing: Generally sales take between 3-5 months to close depending on various factors. The most common factors affecting closing include: mortgage & financing, condo/coop board approval and appraisal.

Recommended Amount To Put Down: The amount needed to purchase property varies depending on the type, size and location of a property. For example, is the property a single or multi family dwelling, coop or condo. Hillel Realty Group recommends being prepared to pay about 10-20% of total price. Some properties may accept a smaller percentage for qualification. You will also need to set aside additional monies for closing costs.

Contract of Sale: is a legally binding agreement between a purchaser and a seller in which each party gives consideration, (bargains for an exchange) as defined in the terms of the sale.

NOTE: Sometimes there are other fees which may be charged. This generally occurs when the property is a condo or coop. Our brokers will be happy to discuss these with you.