Most asked
Do I need a lawyer for a NYC real estate closing?
Not legally required for all NY transactions, but standard practice in NYC and strongly recommended. New York real estate transactions are complex with significant legal and financial risks. An attorney protects your interests, reviews contracts, handles title issues, negotiates terms, and ensures proper closing procedures. Lenders, brokers, and co-op boards routinely expect both sides to have counsel — going without is unusual and increases risk of contract issues you won't see until closing.
Question 2
How long does a NYC residential closing take?
Timeline varies significantly by property type. Single-family homes and condos typically take 60-90 days from contract to closing. Co-op purchases often take 90-120 days due to the board approval process (4-8 weeks for board review). Cash purchases can close faster (30-45 days). Delays occur due to financing issues, title problems, board approvals, inspection findings, or environmental issues. We anticipate potential delays and keep your transaction moving.
Question 3
What's a co-op board package and how do I prepare?
After contract signing, you submit a comprehensive board package including financial documents (tax returns, bank statements, employment letters), personal references, and a personal disclosure statement. The board reviews your package and typically schedules an interview (some buildings waive interviews). Approval timelines vary, typically 4-8 weeks. Boards can reject without giving reasons. We help prepare strong board packages, advise on the interview, and guide you through the process.
Question 4
What are typical closing costs for a NYC buyer?
Buyers typically pay 2-5% of purchase price in closing costs. All buyers pay: attorney fees, title insurance (buyer's and lender's policies), recording fees, bank fees if financing, mortgage recording tax (1.8-2.05% depending on loan amount and location). Properties over $1M trigger the mansion tax (1-3.9% progressive). Co-op buyers also pay flip taxes (varies by building, often 1-3%), UCC-1 filing fees, and working-capital contributions (typically 1-2 months of maintenance). We provide detailed closing-cost estimates early in the process.
Question 5
What is the mansion tax in NYC?
The mansion tax is a buyer's tax on properties over $1 million. Rates are progressive: 1% on $1-2M, 1.25% on $2-3M, 1.5% on $3-5M, 1.75% on $5-10M, 2.25% on $10-15M, 2.75% on $15-20M, 3.25% on $20-25M, and 3.9% on properties over $25M. A $1.5M purchase pays $15,000. This is separate from other transfer taxes (NYC + NY State transfer taxes, paid by the seller).
Question 6
What's the difference between a co-op and a condo closing?
Condo: you receive a deed for your unit and a percentage of common areas. Easier to buy/sell, fewer restrictions, financing more straightforward, but often higher prices and common charges. Requires review of condo bylaws, financials, and common-charge history. Co-op: you receive shares in the corporation that owns the building plus a proprietary lease. More complex — board approval required (board can reject without reason), flip taxes (typically 1-3% of sale price), sublet restrictions, and stricter financing rules — but often lower prices. Closing involves a stock certificate and proprietary lease assignment, not a deed.
Question 7
What is a title search and why does it matter?
A title search examines public records to verify the seller's ownership and identify issues that could affect your purchase — liens, easements, restrictions, and any open violations cited against the property. In NYC, we search ACRIS (Automated City Register Information System) at a836-acris.nyc.gov for property records, liens, and ownership history, plus DOB/HPD/ECB violation searches. Title insurance protects you against defects discovered after closing. Lenders require lender's title insurance; we strongly recommend owner's title insurance too — a one-time premium that protects you for as long as you own the property.
