Sticker shock at the closing table is avoidable when you know what to expect. If you are buying a condo, co-op, or townhouse in Brooklyn, your closing costs can include taxes, lender fees, insurance, building charges, and prepaids. You want a clean number for cash to close, with no surprises. This guide breaks down typical buyer costs in Kings County, how they vary by property type and contract, and how to estimate your total with confidence. Let’s dive in.
What closing costs usually include
Closing costs fall into a few predictable buckets. Your exact mix depends on your financing, the building, and your contract.
- Purchase price items: your down payment and any negotiated seller credits.
- Government taxes and recording: New York State and New York City transfer taxes, mansion tax on high-value sales, mortgage recording tax if you finance, and recording fees.
- Lender costs: application, origination or points, underwriting, appraisal, credit, and any required escrows.
- Title and settlement: title search and title insurance, plus a settlement or closing fee. Recording fees for deed and mortgage.
- Attorneys and third parties: your attorney, and any required reports or inspections.
- Building fees: co-op application fees, move-in deposits, condo transfer or estoppel fees, and any flip tax if your contract assigns it to you.
- Prepaids and escrows: prorated property taxes, first months of common charges or maintenance, first year homeowners insurance, and lender escrows if required.
- Miscellaneous: courier or wire fees, notary, copies, movers, and utility setup.
Key Brooklyn taxes to know
Mansion tax at $1,000,000 and up
New York State’s mansion tax for residential property is a buyer-side tax of 1% of the purchase price when the price is $1,000,000 or more. Responsibility can be negotiated in the contract, so confirm with your attorney.
NYC and NYS transfer taxes
Both New York State and New York City impose transfer taxes on many property transfers in the five boroughs. Rates and thresholds vary by property type and price tier. In resale transactions, who pays is often negotiated. In sponsor or new development deals, contracts and offering plans may shift some or all transfer taxes to the buyer. Always verify with your attorney and title company.
Mortgage recording tax in NYC
If you take a mortgage that is recorded in New York City, a mortgage recording tax applies. The exact percentage depends on loan size and recording location. Ask your lender and title company for the precise calculation for your loan in Kings County.
Differences by property type
Condos
- You typically purchase an owner’s title insurance policy, and your lender requires a lender’s policy if you finance.
- Expect condo administrative or transfer fees and an estoppel or similar certificate.
- The building may collect the first month of common charges and may require a reserve escrow.
- State and city transfer taxes and mansion tax apply as described, subject to your contract.
Co-ops
- You buy shares and an assignment of the proprietary lease, not a deeded unit. Documentation and transfer tax treatments differ, and many co-ops have their own closing procedures.
- Expect board application fees, processing fees, and move-in deposits. These are often nonrefundable.
- Some buildings impose a flip tax. It is commonly paid by the seller, but this is negotiable and set by the proprietary documents and your contract.
Townhouses and houses
- These are fee-simple transfers. Plan for title insurance, deed recording, transfer taxes, potential mortgage recording tax, and property tax prorations. Surveys are uncommon in NYC but can be required in certain cases.
New developments
- Sponsor contracts and offering plans often allocate costs differently than resales. Sponsors may require buyers to pay certain transfer taxes and additional sponsor or move-in fees.
- If you have pre-closing occupancy before the deed transfer, you may owe interim occupancy payments, separate from your final closing.
Typical ranges you can expect
These ranges help you budget. Exact numbers depend on your price, loan, building, and negotiated terms.
- Attorney fees: typically $1,000 to $3,000 for buyer representation in NYC.
- Title insurance: premium is based on purchase price under regulated NY schedules. Expect several hundred dollars on smaller deals to several thousand on higher-price purchases.
- Lender fees: about 0.5% to 1.5% of the loan amount when you include origination, processing, underwriting, and any points. Some items are flat fees.
- Appraisal: often $450 to $1,200 depending on property and lender.
- Mortgage recording tax: a meaningful percentage of the mortgage in NYC, confirmed by your lender and title company.
- Transfer taxes: state and city transfer taxes can add up to several percentage points of the price in aggregate, depending on the deal structure and price tier.
- Recording and clerk fees: usually a few hundred dollars.
- Prepaids and escrows: typically $500 to $5,000 for insurance, prorations, and initial reserves.
Because NYC has multiple layers of taxes and fees, plan for several thousand dollars above your down payment. At or above $1,000,000, the 1% mansion tax is a predictable additional cash item.
How to estimate your cash to close
Gather the right data early so you can lock in an accurate figure.
Sample worksheet structure
Use this structure to organize your numbers and avoid missed items:
- Down payment
- Loan closing costs: origination or points, underwriting, appraisal
- Title and recording: owner and lender title policies, settlement fee, recording fees
- Government taxes: NYS transfer tax, NYC transfer tax, mansion tax if applicable
- Mortgage recording tax: if you record a mortgage
- Attorney fees
- Prepaids and escrows: first year homeowners insurance, property tax prorations, HOA or maintenance
- Building and misc.: co-op or condo fees, move-in deposits, courier or wire fees
- Total: estimated cash to close
Three quick Brooklyn examples
These examples are for planning. Your contract and building can shift responsibility and amounts.
Example 1: Resale condo around $450,000
- Down payment: depends on your financing choice.
- Lender fees: often 0.5% to 1.5% of the loan amount, plus appraisal.
- Title insurance: premium based on regulated NY rates for a $450,000 purchase.
- Government taxes: include state and city transfer taxes only if your contract assigns them to you.
- Mortgage recording tax: applies if you take a mortgage, calculated on the loan amount.
- Prepaids: first month of common charges and prorated property taxes.
- Attorney and misc.: attorney typically $1,000 to $3,000, plus recording and courier fees.
Example 2: Co-op around $600,000
- Down payment and financing: your choice, subject to building requirements.
- Co-op fees: application and processing fees, plus move-in deposit.
- Flip tax: check the proprietary documents and contract to see who pays.
- Lender costs: similar to condos if you finance, including appraisal and underwriting.
- Government taxes: co-op transfers follow state and city rules, but documentation differs, so confirm the exact taxes with your attorney and title company.
- Prepaids: first month maintenance and tax prorations.
Example 3: Condo at $1,200,000 with a mortgage
- Mansion tax: 1% of $1,200,000, which equals $12,000.
- Lender fees: typically 0.5% to 1.5% of the loan amount, plus appraisal.
- Title insurance: owner and lender policies priced by regulated schedules.
- Mortgage recording tax: calculated on your mortgage amount, confirmed by lender and title.
- Transfer taxes: state and city transfer taxes apply, and responsibility depends on your contract.
- Prepaids and escrows: first year homeowners insurance, HOA prepayment, and tax prorations.
- Attorney and misc.: attorney typically $1,000 to $3,000, plus settlement and recording fees.
Ways to control or reduce costs
- Negotiate credits: ask for a seller credit to offset closing costs if your lender allows it.
- Compare loan options: review no-point and point structures, and ask about lender credits.
- Clarify contract allocations: before signing, confirm who pays transfer taxes and any flip tax.
- Time your closing: a mid-cycle or month-end closing can affect prepaid interest and HOA timing.
- Verify building fees early: request a fee schedule from the managing agent to avoid surprises.
What to verify before you sign
- Exact NYS and NYC transfer taxes for your deal and who pays them
- Whether a flip tax applies and who pays it
- Title insurance premiums and settlement charges
- Mortgage recording tax for your loan amount in NYC
- All building-specific fees and deposits
Get local help that closes on time
You deserve a clear, accurate cash-to-close number and a smooth path to the keys. If you want a pragmatic plan, fast answers, and tight coordination with your attorney, lender, and title team, connect with Darren Desrameaux. Schedule a free consultation and get your Brooklyn purchase across the finish line with confidence.
FAQs
What are typical buyer closing costs in Brooklyn?
- Plan for several thousand dollars above your down payment, plus the 1% mansion tax if your price is $1,000,000 or more, with exact totals confirmed by your attorney, lender, and title company.
Who usually pays NYC and NYS transfer taxes?
- Responsibility is contract-specific, and sponsor sales often shift more costs to buyers, so confirm allocations with your attorney before you sign.
Is owner’s title insurance required for a Brooklyn condo or house?
- It is not legally required, but it is strongly recommended, and your lender will require a lender’s policy if you finance.
Do co-ops have different closing costs than condos?
- Co-ops add board application and move-in fees, and some buildings have a flip tax, while documentation differs from deeded properties, so confirm taxes and fees with counsel.
What is the mansion tax and when does it apply?
- New York State charges a buyer-side 1% tax on residential purchases of $1,000,000 or more, with payment responsibility set by your contract.
How do I estimate the mortgage recording tax in NYC?
- Ask your lender and title company for the exact calculation for your mortgage amount in Kings County, since the rate depends on loan size and recording location.
