Buying in New York can feel like two different worlds. Why does a condo in Manhattan often come with higher closing costs, while a single‑family home in Nassau County can carry a bigger monthly tax bill? If you are comparing both paths, you want clear numbers and a clean checklist. In this guide, you will see what each fee means, who typically pays it, and how NYC and Nassau County differ so you can plan your cash‑to‑close and monthly carry with confidence. Let’s dive in.
Key differences at a glance
- NYC real property sales add the NYC Real Property Transfer Tax (RPTT), which does not exist in Nassau County.
- The state transfer tax applies statewide to most real property sales.
- The mansion tax is statewide at 1% for residential sales of $1,000,000 or more.
- Mortgage recording taxes are higher in NYC than in Nassau County.
- Title insurance is standard for Nassau single‑family homes and most condos; co‑ops are share sales and typically do not use owner’s title insurance.
- Recurring costs differ: Nassau homes often have higher property taxes, while NYC condos and co‑ops often have higher monthly common charges or maintenance.
NYC transfer taxes vs Nassau
New York State transfer tax applies broadly to conveyances of real property statewide. It is historically calculated at 0.4% of the purchase price. The seller often pays this tax, but you should confirm your contract since customs vary by deal.
NYC Real Property Transfer Tax (RPTT) is an additional city tax that applies to transfers of real property located in NYC, such as condos and 1–3 family houses. For residential properties, common tiers include about 1.0% up to $500,000 and about 1.425% above $500,000. The seller typically pays, but contracts can allocate differently. This tax does not apply outside NYC, so you will not see it on a Nassau County home purchase.
Co‑ops are different. Co‑op transfers are usually stock and proprietary lease transfers rather than real property conveyances. NYC RPTT often does not apply to co‑op share transfers, and state transfer tax treatment differs from real property. Always have your attorney verify the building and transaction type.
Mansion tax applies statewide
The mansion tax is a 1% surcharge on residential sales of $1,000,000 or more. It applies across New York State, including Nassau County and NYC. It is typically paid by the buyer, unless your contract states otherwise. For example, a $1,200,000 purchase would carry a $12,000 mansion tax.
Mortgage taxes and recording
New York imposes mortgage recording taxes when a mortgage is recorded. The borrower pays this tax at closing. Rates are higher in NYC due to a city component and are typically lower in Nassau County. The total amount depends on location, loan size, and lender type. You will also see recording fees charged by the county clerk for deeds and mortgages. These are smaller line items but still matter for your final cash‑to‑close.
Title insurance differences
For Nassau County single‑family homes and many condos, you should expect title insurance costs that include a lender’s policy when you finance and often an owner’s policy. Premiums are set by state filings and scale with price. Combined premiums and related title charges commonly fall in a rough range of 0.3% to 0.75% of the purchase price, depending on coverage and specifics.
Co‑op buyers typically do not buy owner’s title insurance because you are purchasing shares, not real property. Instead, counsel reviews the co‑op’s corporate records and building documents.
Attorney and lender fees
Most New York transactions involve attorneys on both sides. Attorney fees for routine residential deals often range from about $1,200 to $3,500, with co‑op transactions in NYC sometimes on the higher end given board packages and additional work.
Your lender will charge origination, processing, and underwriting fees, and you will pay for an appraisal and a credit report. Typical appraisal fees run about $400 to $1,200. Lender fees vary, but a range of $500 to $3,000 is common. You will also fund prepaid escrow deposits for taxes and insurance at closing, which can add several thousand dollars depending on your tax cycle and policy timing.
Building fees and co‑ops
Condos and co‑ops may charge application fees, move‑in/move‑out fees, and other administrative charges. If you are buying in a co‑op, you may see board application fees and possible flip taxes when selling. Flip taxes are building‑specific transfer fees, often paid by the seller, but you should confirm how your building handles them in your contract.
For single‑family homes in Nassau County, you will not have building board fees, but you may have homeowners association fees if you buy in a planned community.
Recurring carrying costs
Property taxes: Nassau vs NYC
Property taxes are a major driver of monthly cost. Nassau County single‑family homes tend to carry higher effective property tax rates compared to many NYC condos and co‑ops. Effective rates in Nassau commonly fall around 1.8% to 2.5% of value depending on the municipality and assessment. NYC condos and co‑ops are taxed within a different system, and many units end up with lower effective property tax as a percent of market value.
HOA, maintenance, and assessments
- Condos charge monthly common charges for operations, reserves, and sometimes certain utilities.
- Co‑ops charge monthly maintenance, which often includes the building’s property taxes, staffing, and shared expenses. If the co‑op has an underlying mortgage, that cost can be included in maintenance as well.
- Single‑family homes in Nassau have no condo common charges, but you shoulder all upkeep and services directly. Some communities have HOA dues for shared amenities.
Insurance and utilities
- Nassau single‑family homes require a full homeowner’s policy and, if applicable, flood insurance. Monthly costs can run higher than a condo/co‑op HO‑6 policy.
- NYC condo/co‑op owners often carry an HO‑6 policy that covers interior items and liability, since the building’s master policy covers the structure.
- Utilities and maintenance are more a la carte for single‑family homes, while condos and co‑ops bundle some building costs into monthly dues.
Three example scenarios
The figures below are simplified illustrations to show how cash‑to‑close and monthly carry can differ. Actual costs vary by building, lender, municipality, and contract.
A) NYC condo, $900,000 purchase
- Price: $900,000; 20% down: $180,000; mortgage: $720,000
- State transfer tax (0.4%): $3,600
- NYC RPTT (~1.425% above $500,000): $12,825
- Mansion tax: none
- Title and lender policies (estimate): $4,500
- Attorney and closing fees: $2,500
- Appraisal, lender fees, and prepaids: $4,000
- Estimated cash‑to‑close excluding down: about $29,425
- Monthly carry:
- Principal and interest on $720,000 at 6.5%: about $4,553
- Property tax (assume effective 0.7%): about $525 per month
- Common charges: about $1,000 per month
- HO‑6 insurance: about $50 to $150 per month
- Total monthly carry: about $6,128
B) NYC co‑op, $700,000 purchase
- Price: $700,000; 20% down: $140,000; mortgage: $560,000
- Co‑op share transfers are not real property; tax treatment differs. NYC RPTT typically does not apply to co‑op shares. Confirm specifics with counsel.
- State transfer tax treatment differs for shares; confirm with your attorney.
- Title insurance: generally not used for co‑op shares.
- Board and move fees: about $1,000 to $4,000
- Attorney and closing fees: about $3,000
- Estimated non‑mortgage closing costs excluding down: about $6,000 to $12,000
- Monthly carry:
- Principal and interest on $560,000 at 6.5%: about $3,545
- Maintenance: about $1,200 per month
- Total monthly carry: about $4,745
C) Nassau County single‑family, $900,000 purchase
- Price: $900,000; 20% down: $180,000; mortgage: $720,000
- State transfer tax (0.4%): $3,600
- NYC RPTT: not applicable
- Mansion tax: none
- Title and lender policies: about $4,500
- Attorney and closing fees: about $2,500
- Appraisal, lender fees, and prepaid escrow: about $6,000
- Estimated cash‑to‑close excluding down: about $16,600
- Monthly carry:
- Principal and interest on $720,000 at 6.5%: about $4,553
- Property tax (assume effective 2.2%): about $1,650 per month
- Homeowner’s insurance: about $100 to $250 per month
- Total monthly carry: about $6,400 to $6,800
What these examples show: the NYC RPTT often pushes cash‑to‑close higher for NYC real property purchases, while Nassau property taxes typically make the monthly carry heavier on Long Island. Your actual numbers will depend on your building, town, lender, and contract.
Simple buyer checklist
Use this to get ahead of surprises early in the process:
- Confirm property type: condo, co‑op, or single‑family. Tax and title rules depend on this.
- Ask the listing agent or building: flip taxes, transfer fees, required reserves, and who usually pays them.
- Confirm if NYC RPTT applies. For co‑ops, confirm you are buying a share rather than real property.
- Request an itemized Loan Estimate from your lender for mortgage recording tax, origination fees, and escrows.
- Pull local property tax estimates from the county or town assessor for budgeting.
- Budget for title insurance for Nassau homes and most condos; confirm whether an owner’s policy is customary for your property type.
- Add monthly common charges or maintenance to your mortgage, taxes, and insurance to get total carry.
- Get board application and move fee schedules for condos and co‑ops.
- Run a full cash‑to‑close and monthly carry estimate with different down payments and rates to stress test your plan.
Next steps
You deserve clear numbers before you write an offer. If you want a precise estimate for a specific building or block, we will model your cash‑to‑close and monthly carry and flag building or town fees that matter in Nassau County and NYC. Speak with a trusted advisor at Byson Real Estate Co. to map the best path for your purchase.
FAQs
What is the NYC Real Property Transfer Tax?
- The NYC RPTT is a city transfer tax on real property sales within NYC, typically paid by the seller and layered on top of the state transfer tax; it does not apply in Nassau County.
Does the mansion tax apply in Nassau County?
- Yes. The 1% mansion tax applies statewide to residential sales of $1,000,000 or more, including Nassau County and NYC, and it is usually paid by the buyer.
Do co‑op purchases pay the NYC RPTT or need title insurance?
- Co‑ops are usually share transfers rather than real property, so NYC RPTT often does not apply and owner’s title insurance is generally not used; confirm details with your attorney.
Are mortgage recording taxes higher in NYC than Nassau?
- Yes. Mortgage recording taxes include a city component in NYC, which makes them higher than in Nassau County; the exact amount depends on your loan size and lender type.
Why are Nassau monthly costs often higher than NYC?
- Nassau single‑family homes commonly have higher effective property tax rates, which can make monthly carry larger even though you avoid the NYC RPTT at closing.
