NYC: Condo vs. Co-op

NYC: Condo vs. Co-op

  • The Mark O'Brien Team
  • 05/11/21

While many buyers recognize the differences between Condos and Co-ops, few understand the closings costs that coincide with both property types. Closings costs on a condo is significantly higher than for a co-op. Generally, buyer closing costs for condos are 2% to 3% higher than for comparable co-op units. Because Co-op units are owned and controlled jointly by a group of individuals who own shares in the building, Co-op units are not considered ‘real property’. Conversely, condos are considered ‘real property’. Assuming that the buyer is financing their purchase, the buyer is responsible for the mortgage recording tax and title insurance.

Mortgage lenders require the buyer to pay .4% to .5% of the closing price for a title insurance policy. For a $1,000,000 Condo, the buyer can expect to pay $4,000 to $5,000. In a Co-op, title insurance is not required as buyers do not convey physical title. The combined cost of title insurance and the mortgage recording for a $1,000,000 Condo (80% financed) amounts to $20,000 in additional closings costs compared to a co-op.


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Having lived and worked in New York City for more than 30 years, I offer experience of the all-important, yet often imperceptible, nuances of each neighborhood. Finding the city's hidden gems is one of my greatest passions, and am driven by creating real value on behalf of my grateful and loyal clientele.

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