These are the costs incurred in obtaining the mortgage to purchase your property. For an explanation of bank-related expenses please speak to your lender.
These expenses are typically incurred to complete the transfer of title and to record the necessary documents associated with the closing. They include:
Title Insurance Premiums:
- Fee Insurance - Insures the owner’s interest in the title to the property. The premium is based on the purchase price.
- Mortgage Insurance - Required by the bank when a mortgage is sought, the mortgage policy insures the lender’s lien position and priority. The premium is based on the amount of the mortgage.
Most lenders typically require that the borrower purchase standard endorsements to the mortgage insurance policy:
- Waiver of Arbitration
- 8.1 Environmental Lien
- Residential Mortgage
Other Company Charges:
- Title Company Searches and Service Fees:
These include additional searches and services performed in conjunction with issuing a title report or policy, such municipal searches, Patriot name searches, bankruptcy searches, survey expenses, taxes and escrow fees.
- Municipal Searches* - Includes searches for building violations, fire department violations, copiy of Certificate of Occupancy, open permits, and a street maintenance report. All information is obtained through the local municipality and used for informational purposes only. Most lenders and attorneys require this information before closing.
- Patriot Search* - All buyers’ and sellers’ names are run through a national database. This helps prevent terror funding through property investment.
- Bankruptcy Search* - The names of the buyers and sellers are run through a national database to find any filed or recently discharged bankruptcy. Seller’s in certain types of bankruptcy cannot sell property without a bankruptcy judge’s approval.
- Survey Inspection (of an existing survey) - A visual inspection of the subject property done by a non-surveyor that notes any major changes. The survey must be certified and meet other minimum standards in order to be inspected or a new survey may be required.
- Escrow Service Fee - Charge for collecting, holding, and paying a property tax or other lien.
Estimated Recording Charges
Recording Fees: To record a document in the State of New York, the original fully-executed documents must be submitted to the County Clerk for recording, the fee for which varies by each county and document type. The most standard documents to be recorded by a buyer in association with a home purchase include the deed and mortgage agreement. These fees are set by the County and are paid directly to the County when the documents are submitted for recording.
- Deed (withTP-584 & RP-5217) - The charge to record the deed in the Office of the County Clerk which conveys the property from the seller to the buyer. Also includes the cost to file the TP-584 and RP-5217 which are required by the state.
- Mortgage - The charge to record the mortgage in the Office of the County Clerk
Sales Tax - (*taxable items) New York State requires that we collect sales tax on the sale
State and Local Taxes
- Mortgage Recording Tax: For purchases with a mortgage, a one-time mortgage recording tax is assessed against the home buyer, which will vary by county and mortgage amount. In New York State, the buyer will pay mortgage tax is between 1% and 2.8% of the total mortgage amount, of which the buyer will pay 75% and the lending bank pays 25% in most cases.
- Transfer Tax: New York State imposes a real estate transfer tax on conveyances of real property when the consideration exceeds $500. The tax is computed at a rate of $2.00 for each $500 and is generally paid by the seller using form TP-584. If the buyer is paying the transfer taxes there is an additional "grossed-up" fee.
- Mansion Tax: New York State imposes a real estate transfer tax on conveyances of real property valued over $500, which in most transactions is paid by the seller. However, for home purchases with a sale price of $1,000,000 or more, New York State imposes an additional transfer tax of 1% of the sale price to be paid by the purchaser.
- Supplemental (Mansion) Tax - An additional/ supplemental tax to the mansion tax. Applies to residential Property in New York City or a city in New York State with a population of one million or more. The supplemental mansion tax applies when the consideration is $2 million dollars or more. The tax rate is an incremental rate between .25% and 2.9% based on the purchase price.