Closing costs for buyers in New York City are 2.5% to 3% higher for condos compared to co-op apartments. Closing costs are higher for condos because of title insurance and the mortgage recording tax, both of which do not apply to co-op apartments. To estimate your buyer closing costs in New York City, visit our industry leading closing cost calculator at www.hauseit.com. Hauseit’s Closing Cost Calculator for Buyers in NYC is the most accurate closing cost estimator available in the industry. So, what is title insurance? Title insurance protects a buyer from any defects or future claims against the title which were unknown at the time of purchase. This means that you’ll be protected against financial loss if a former owner claims that he or she never sold the property to the seller of your property, which means the seller of the property didn’t have a right to sell it to you. Title insurance is generally not applicable to co-ops because co-op apartments are not considered to be ‘real property.’ Buying a co-op means that you are buying shares in a corporation that owns the apartment building. Title insurance is a bank requirement if you are financing your condo purchase. How much is title insurance? Title insurance is around 0.4% to 0.5% of the purchase price. It is the third largest closing cost for condo buyers in NYC behind the mortgage recording tax and the mansion tax. What is the mortgage recording tax? The New York City and New York State Mortgage Recording Tax of 2.05% to 2.8% is the largest closing cost for condo buyers in NYC. Buyers of co-ops in NYC do not have to pay the mortgage recording tax because the tax is imposed on ‘real property’ and co-ops are not ‘real property.’ The mortgage recording tax generated over $1.8 billion in revenue in 2016 according to the NYC Department of Finance. How much are buyer closing costs in New York City? Buyer closing costs in New York City are between 1.5% to 5%. Closing costs are higher for condos than co-ops, and closing costs are always greater for ‘new construction’ ( also known as sponsor sales). In most cases, you will also pay higher closing costs if you are financing vs. making an all-cash transaction. You can save thousands and reduce your closing costs by requesting a Hauseit Buyer Rebate on your purchase. Requesting a Hauseit Buyer Rebate is a legal and non-taxable way to discreetly save money while also receiving top-notch buyer agent representation throughout your purchase. Because our partner brokers don’t openly discount, you can be assured that sellers and listing agents won’t treat you differently compared to other buyers just because you are receiving a rebate. To request a Hauseit Buyer Rebate, visit www.hauseit.com. Established in 2014, Hauseit is New York City’s largest FSBO and Buyer Agent Commission Rebate Company. For more New York City Real Estate insider tips and tricks, subscribe to our channel and visit our blog and forum at www.hauseit.com.