Closing questions
Who pays for title insurance in New York?
In New York the buyer customarily pays for the owner's policy, the lender's policy, searches and recording. What the contract can shift, and what it cannot.
Who pays for title insurance in New York?
Quick Answer
Custom, not statute, decides who pays. The standard New York residential contract of sale puts title charges on the purchaser, and both the owner's policy and the lender's policy come out of the buyer's side of the settlement statement along with the search and recording charges.
The seller's side is not empty. In New York City the seller pays the New York State transfer tax and the New York City real property transfer tax, delivers a deed the title company will insure, and pays off existing mortgages and liens from the proceeds at the table.
The mansion tax on residential sales at or above one million dollars is a buyer charge, and mortgage recording tax on a financed purchase is largely a buyer charge as well, with the lender absorbing a portion on residential loans. These are the lines that surprise first-time purchasers.
Everything here is contract terms, so it can be negotiated. In a soft market a seller concession or credit toward closing costs is a common ask. Put any concession in the contract, because a side agreement made at the table can create a lender problem on a financed deal.
Can the seller agree to pay my title charges?
Yes, by agreement. It shows up as a seller concession or a credit on the settlement statement rather than as a change in who orders the work. On a financed purchase the lender has to approve the concession and it has to appear on the disclosures, so raise it during contract negotiation.
What does the seller pay at a New York City closing?
The seller typically pays the state and city transfer taxes, the payoff on existing mortgages and liens, any open water and sewer charges, the broker commission, and the attorney fee. On a co-op sale the seller also usually pays the flip tax charged by the corporation.
What else should you read before closing?
In the glossary
- Owner's policyTitle insurance protecting the buyer's ownership interest, issued for the purchase price with a single premium. Coverage continues while the insure...
- Lender's policyTitle insurance protecting a lender's lien position, issued in the loan amount. Its coverage falls as the principal balance falls and ends when the...
- Transfer tax (RPTT and NYS)Taxes on the conveyance itself, one City and one State. Rates step up at higher prices, and who pays is set by custom and then confirmed by the con...
- Mansion taxA New York State tax paid by the buyer on residential conveyances of one million dollars or more, graduated upward through a series of higher price...
- Flip taxA transfer fee charged by a co-op or, less often, a condominium when a unit changes hands. It is a creature of the building's governing documents, ...
Questions this raises
- How much does title insurance cost in New York?NY title premiums come from the TIRSA rate manual approved by DFS, so every licensed agent charges the same. What actually changes your closing num...
- Do I need an owner's title policy if my lender already requires one?A lender's policy protects the bank, not you, and ends when the loan is paid. What an owner's policy adds on a New York purchase, and what it costs...
- What happens after the closing table?Recording, recorded copies, the final policy, satisfactions and post-closing lender conditions. The New York closing tail and the documents to keep...
The statute itself
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Legal Disclaimer: This page is general information about New York practice. It is not legal advice, it does not account for the terms of any particular contract, building or transaction, and reading it does not create an attorney-client relationship. This is attorney advertising. Prior results do not guarantee similar outcomes.