Thinking about a condo or a co-op in Westchester County and wondering which one will cost more to close? You are not alone. Closing costs can differ by thousands depending on the property type and where in the county you buy. In this guide, you will see the specific taxes, typical fees, and example totals so you can plan with confidence. Let’s dive in.
What drives the cost difference
Condos transfer real property by deed, while co-ops transfer corporate shares with a proprietary lease. That legal difference is why condo buyers usually pay for title insurance and mortgage recording tax, and co-op buyers usually do not. State transfer taxes and building fees can apply to both, but the mix of costs is different. Understanding this upfront helps you budget and negotiate smarter.
Westchester taxes to know
NYS transfer tax basics
New York State imposes a real estate transfer tax at 0.4% of the sale price. This generally applies to condos and co-ops, and it is typically a seller expense unless the contract says otherwise. You can review the rules on the state’s real estate transfer tax page at the NYS Department of Taxation and Finance. See NYS real estate transfer tax rules.
Mansion tax at 1 million and above
For purchases of 1,000,000 dollars or more, New York charges an additional 1% mansion tax. Buyers commonly pay this tax, and it can apply to condos and co-ops. Review mansion tax guidance.
Mortgage recording tax on loans
Westchester’s mortgage recording tax is often cited at 1.30% of the loan amount outside Yonkers. Yonkers is higher at about 1.8%. This tax applies to condo mortgages because a deed is recorded, but it does not apply to co-op share loans. Some institutional lenders contribute a portion of this tax, which can lower your out-of-pocket cost. Start with the state’s mortgage recording overview, then check Westchester specifics. NYS mortgage recording tax overview. Westchester mortgage recording tax details.
City transfer taxes in Westchester
A few cities add a local transfer tax to deeded transfers. Examples include Yonkers at 1.5%, Peekskill at 1%, and Mount Vernon at 1% over certain thresholds. Some municipal transfer taxes do not apply to co-op share transfers, but local rules vary. Confirm with the municipal clerk where the property is located. Yonkers transfer tax details.
Buyer costs by property type
Condo buyer costs
- Title insurance and title searches. Typical combined premiums land roughly 0.3% to 0.6% of the purchase price. See sample NY title rate references
- Mortgage recording tax and recording fees. In Westchester, plan for about 1.30% of the loan amount outside Yonkers and higher in Yonkers, plus small recording charges. Learn more about Westchester’s mortgage tax
- Buyer’s attorney. Common ranges are about 1,500 to 3,000 dollars depending on complexity. Local attorney fee guidance
- Lender costs. Appraisal, application, credit report, and bank attorney fees often total 500 to 1,500 dollars or more. Westchester lender fee overview
Co-op buyer costs
- Board application and managing agent fees. Many buildings charge 200 to 1,000 dollars or more for processing.
- Recognition agreement fee. Often 150 to 400 dollars to document the lender’s interest.
- UCC lien searches and filings, plus move-in deposits that can range from 250 to 1,000 dollars or more depending on the building.
- Possible flip tax or transfer fee. Structures vary by building and can be a flat amount, per-share fee, or a percentage. When present, 1% to 3% of the sale price is common, but building rules vary. Co-op buyer fee overview. Flip tax structures explained
- Buyer’s attorney and lender costs. Similar ranges to condos for legal and bank fees.
Seller costs to plan for
- Broker commission. Often 5% to 6% in the market unless negotiated.
- Seller’s attorney and loan payoff costs.
- NYS transfer tax at 0.4% of the price, typically paid by the seller unless the contract shifts it. Confirm NYS transfer tax rules
- City transfer tax where applicable in Westchester municipalities that levy one.
- Building fees. Some buildings assign a flip tax or other transfer charges to the seller. Check the proprietary lease, offering plan, and managing agent schedule.
Example closing costs
These examples show scale only. Building rules, lender practices, and contracts can change totals.
Example A: 600,000 dollar purchase
Assume 80% financing with a 480,000 dollar loan.
- Condo buyer
- Mortgage recording tax at 1.30% of 480,000 dollars equals about 6,240 dollars. Westchester mortgage tax reference
- Title insurance at about 0.40% of 600,000 dollars equals about 2,400 dollars. Title rate reference
- Attorney, appraisal, bank fees, and recording services about 3,000 dollars. Local fee overview
- Rough buyer total about 11,600 dollars, around 1.9% of price, excluding escrows and prepaids.
- Co-op buyer
- No mortgage recording tax in most co-op share loans, so you save about 6,240 dollars compared to a condo.
- No owner’s title insurance in most co-ops, so you save about 2,400 dollars.
- Board, recognition, UCC, move-in, bank, and attorney fees around 2,500 to 5,000 dollars. Co-op fee overview
- Rough buyer total about 4,000 to 7,000 dollars, roughly 0.7% to 1.2% of price.
Example B: 1,200,000 dollar purchase
Assume 80% financing with a 960,000 dollar loan.
- Condo buyer
- Mansion tax at 1% equals 12,000 dollars. Mansion tax rules
- Mortgage recording tax at 1.30% of 960,000 dollars equals about 12,480 dollars. Westchester mortgage tax reference
- Title insurance at about 0.40% equals about 4,800 dollars. Title rate reference
- Attorney and other fees around 3,000 dollars or more.
- Rough buyer total about 32,280 dollars or more, around 2.7% of price.
- Co-op buyer
- Mansion tax still applies at 12,000 dollars. Mansion tax rules
- No mortgage recording tax, saving about 12,480 dollars.
- No owner’s title policy in most co-ops, saving about 4,800 dollars.
- Co-op specific fees plus attorney and bank costs about 3,000 to 6,000 dollars. Co-op fee overview
- Rough buyer total about 18,000 to 24,000 dollars, about 1.5% to 2.0% of price.
What most changes your total
- Lender practices. Some lenders contribute a portion of the mortgage recording tax, often about 0.25% of the loan. Ask early to confirm. Westchester mortgage tax details
- Building rules. Flip taxes, reserve contributions, and move-in deposits vary. Always check the proprietary lease, offering plan, and managing agent schedule. Flip tax overview
- Sponsor deals. New developments can shift taxes and fees to the buyer. Read the contract carefully and review with your attorney. Closing cost guide
- Local city taxes. Yonkers, Peekskill, and Mount Vernon can add transfer taxes on deeded sales. Confirm with the municipality. Yonkers transfer tax example
Quick buyer checklist
- Confirm your property type and how that affects title insurance and mortgage recording tax.
- Ask your lender about any contribution to the mortgage recording tax.
- Request a detailed closing worksheet from your attorney and a lender estimate if you are financing.
- Get the building’s fee schedule, including any flip tax and move-in fees.
- Double check whether a city transfer tax applies to your address.
If you want a clear, property-specific estimate and a plan to reduce surprises, let’s talk. You will get straightforward numbers, local insight, and step-by-step guidance from start to finish. Connect with Tom Flynn to get started.
FAQs
Do co-op buyers pay the mansion tax in Westchester?
- Yes. New York’s 1% mansion tax applies at 1,000,000 dollars and above, and it can apply to co-op share transfers. See NYS guidance
Why are condo buyer closing costs usually higher?
- Condos involve a deed, so you pay for title insurance and mortgage recording tax, which are often larger than typical co-op board and processing fees. Title and recording context
Does mortgage recording tax apply to co-ops?
- Generally no. Co-op purchases are share transfers, not deeded real estate, so the mortgage recording tax does not apply to co-op share loans in most cases. NYS mortgage tax overview
Who usually pays the NYS transfer tax in Westchester?
- The base NYS transfer tax at 0.4% is usually a seller expense, but contracts can shift this. Always confirm with your attorney. NYS transfer tax rules
How can you get an accurate estimate before you commit?
- Ask your lender for a formal estimate and your attorney for a detailed worksheet, then confirm building-specific fees with the managing agent. Closing cost checklist
