Co-op
You buy shares and a proprietary lease. No deed transfer, so no title policy and no mortgage recording tax in the condo sense. The board package, interview, and possible PASS decide whether the deal lives.
Before you read
Educational only
Process notes and typical cost bands. Your building, counsel, lender, and facts will move the numbers.
- This is general guidance on process and typical cost ranges. Every transaction differs by building, counsel, lender, and your facts.
- It is not legal, tax, or investment advice, and not a quote or offer of any transaction terms.
- Confirm anything material with a New York real estate attorney and a CPA before you act. Brokerage context: Agent Kammer. Live where you belong.
Path chooser
Pick the building type first
Condo, co-op, and house each change the paperwork, the board (or lack of one), and what you carry after closing. A 1031 sits on top of a sale that funds a purchase, with timing rules and a qualified intermediary riding along.
House / townhouse
Fee simple: land and structure. Inspections matter. Thin on this page because the volume is condo and co-op. Separate guide next.
1031 exchange
If you are selling investment property and buying another, a qualified intermediary and the 45 / 180-day clocks sit on top of the same sell → buy sequence. Choose condo, co-op, or house as the asset; the exchange rules decide the timing and the QI, not the floor plan.
Condo (deed path) is introduced in the banner: unit plus deed, title insurance, mansion tax, and mortgage recording tax on the buyer’s side when financed. Boards exist, but they do not interview like a co-op.
The sequence
Twelve steps from budget to keys
Attorneys draft the contract. Agents do not. The timetable below is what usually sets the pace. Your file may move slower. Patience here is a form of intelligence.
Steps 4-5Search and view, then offer with proof of funds. Condo or co-op decides how wide the field is; undocumented funds are not taken seriously.
Steps 6-7Attorney reviews financials, minutes, offering plan, litigation. Then contract and 10% deposit in the seller attorney’s escrow.
| # | Step | Typical time | What decides it |
|---|---|---|---|
| 1 | Set the budget and the financing route | 1-2 weeks | Cash, or which lender will take your file |
| 2 | Engage a buyer’s agent in writing | Same week | Whose side they are on, and who pays them |
| 3 | Engage a New York real estate attorney | Same week | New York contracts are drafted by attorneys, not agents |
| 4 | Search and view | 2-8 weeks | Condo or co-op decides how wide the field is |
| 5 | Offer, with proof of funds | Days | Offers without documented funds are not taken seriously |
| 6 | Attorney reviews the building’s documents | 1-2 weeks | Financials, minutes, offering plan, litigation |
| 7 | Sign the contract, pay 10% deposit | Days | Deposit is held in the seller attorney’s escrow |
| 8 | Loan application and appraisal | 3-6 weeks | Skipped on a cash purchase |
| 9 | Board application (co-ops only) | 4-8 weeks | Financials, references, interview |
| 10 | Clear title and buy insurance | 1-2 weeks | Runs in parallel; lighter on co-ops (no deed) |
| 11 | Final walk-through | Day before | Condition, and that what was agreed remains |
| 12 | Closing | 1 day | Attorneys, lender, title company, transfer of funds |
Cash condo
About 6-10 weeks from accepted offer to closing when the file is clean.
Steps 8-9Loan application and appraisal (skipped on cash), then board application on co-ops: financials, references, interview.
Steps 10-12Clear title and insurance in parallel, final walk-through the day before, closing with attorneys, lender, and title.
Pace bandsCash condo about 6-10 weeks; with a mortgage often 8-12; co-op + board about 10-16. The board sets the pace; thin packages invite a PASS.
Day one
What the buyer pays at closing
Figures below are general guidance in an August 2026 style. Not a quote, not a guarantee, and not Agent Kammer’s bill. Confirm every line with counsel and the title company on your deal.
MRT & titleMortgage recording tax and title insurance typically sit on financed condos; co-op share purchases usually skip both (no deed).
| Item | Condominium | Co-op | Note |
|---|---|---|---|
| Mansion tax | 1.00-3.90% | 1.00-3.90% | From $1m, in bands, on the whole price |
| Mortgage recording tax | ~1.80-1.925% | None (typical) | On the loan amount for condo financing; buyer often nets after the lender’s 0.25% share |
| Title insurance | ≈0.45% | None (typical) | No deed transfers in a co-op share purchase |
| Attorney | $3,000-6,000 | $3,000-6,000 | Often higher on new development or complex title |
| Building / application fees | $1,000-2,500 | $1,500-3,000 | Move-in deposits are often refundable |
| Appraisal & inspection | $800-2,000 | $800-2,000 | Some cash buyers skip; rarely wise on houses |
| New-development premium | ~1.825-2.075% | n/a | Sponsor sales often shift transfer taxes toward the buyer. CONSIDER the all-in before you fall for the amenity floor. Stack that against sponsor / new-dev incentives (credits, tax shifts, buydowns) in Tracks & boosters |
Fixed feesAttorney, building/application fees, appraisal & inspection. Plan them on both condo and co-op paths.
New-development premiumSponsor sales often shift transfer taxes toward the buyer. CONSIDER the all-in before the amenity floor, and stack against sponsor incentives in Tracks & boosters.
Budget shape: on a $2,000,000 resale condominium with a mortgage, plan roughly 3-5% of price in closing costs on top of the deposit. On a sponsor new-development, often more (commonly discussed in a 5-6% band once transfer taxes lean your way). Net the sponsor’s advertised credits and rate buydowns against that band (see Tracks & boosters). Price is what you pay; value is what still fits after the fees.
After the keys
What you carry once you own
Day-one costs get you to closing. Carry decides whether the home still fits six months later. Ask for the monthly number before you lock the offer. Belonging has a monthly price.
Maintenance usually wraps building ops and the shareholder’s share of the underlying mortgage and taxes into one line. Compare buildings on all-in monthly cost, not just share price.
You own the envelope. Property taxes, insurance, and every boiler, roof, and sidewalk repair sit with you. An inspection is how you price carry, not optional theater.
Condo common charges (banner): monthly common charges cover operations, reserves, and shared services; taxes are billed separately. Read the budget and minutes for special assessments already in motion.
Friction
Where deals stall
Most NYC files do not die on the floor plan. They die on funds, boards, and paper that arrives late from abroad. The lobby is rarely the problem.
Co-op board
PASS riskA board can decline without giving a reason. Thin packages (light U.S. income history, thin references, or assets that do not read clearly on the application) raise PASS risk after the deposit is already committed. Build the package with counsel before you romanticize the lobby.
Signing from abroad / POA
CONSIDERContracts can be signed remotely, but a power of attorney must be drafted, notarized, and often apostilled in your country. That is measured in weeks, not days. Start it early, or CONSIDER delaying the offer until the POA path is real.
How you hold title
PICK earlyPersonally, through a U.S. LLC, or another structure changes income tax, estate exposure, and what happens on sale. PICK the form with counsel and your CPA before contract. Restructuring after is expensive theater.
Source of funds
WAITMoney that appears from an account nobody has documented stops the file at the bank, the title company, or both. Show where the funds sit and how they got there at the start, not when the wire is due. Decision stamp: incomplete trail = WAIT until the paper is clean. (Banner art.)
Optional overlay
1031 in one quiet plate
If this purchase is funded by selling investment property, the exchange sits on top of the same twelve steps. It does not invent a new building type.
Identify
45 days
From sale closing, name replacement property under the exchange rules.
Close the buy
180 days
Complete the purchase inside the statutory window, or the deferral fails.
QI (banner): proceeds never touch your hands. Engage the QI before the sale closes. Overlay on sell → buy only. Tax treatment depends on your facts; confirm with a CPA who lives in 1031 work. Educational only.
After the straight path
Tracks & boosters
Questions worth asking after the straight path. Not a second tutorial.
Co-op vs condoBoard gate or not. Co-op adds weeks and package risk. Ask: board appetite for this file?
| Track | What it is | Timeline | Cost / rate effect | Ask |
|---|---|---|---|---|
| Cash | Skip loan + appraisal wait | Fastest | No MRT on loan; opportunity cost | Proof of funds early? |
| High down / strong file | Cleaner underwriting | Faster loan path | Sometimes better pricing | Can we lock early? |
| Buyer-ordered appraisal | Parallel diligence | Shaves days if lender accepts | Appraisal fee now | Will your lender use it? |
| Co-op vs condo path | Board gate or not | Co-op adds weeks | Package risk | Board appetite for this file? |
| Sponsor / new-dev incentives | Credits, transfer-tax shifts, rate buydowns, free common-charge months, parking | Day-one; sometimes timeline | Day-one cost & sometimes timeline | What does the incentive really cost vs Living Fit? (read offering plan amendments) |
| 1031 overlay | Swap clock on top | 45/180 bound | QI + tax structure | QI engaged before close? |
| Mortgage assumption | Take seller’s rate/loan | Niche; lender + due-on-sale | Can cut APR vs new money | Is the loan assumable? Who qualifies? |
| Creative / leverage | Seller financing, wrap, JV, etc. | Deal-dependent | Structure drives APR & risk | What’s documented vs handshake? |
Sponsor / new-devCredits, transfer-tax shifts, rate buydowns, free common-charge months, parking. What does the incentive really cost vs Living Fit?
1031 overlaySwap clock on top (45/180 bound). QI engaged before close?
Assumption & creativeTake the seller’s rate when assumable; seller financing / wrap / JV only when documented. Handshake theater does not close.
Short answers
FAQ
Non-residents can buy (ownership does not confer a visa). Below: presence at closing, deposits, and inspections.
Do I need to be in New York to close?
No. Closings are routinely completed by power of attorney. Remote notarization is available in some circumstances. The POA must be prepared well in advance.
How large a deposit is normal?
Ten percent of the price at contract, held in the seller attorney’s escrow until closing. It is at risk if you walk away outside the contract’s contingencies.
Is an inspection usual in New York?
Less common for apartments than elsewhere in the U.S., because many building systems are the building’s responsibility. For a house or townhouse it is essential. For a large apartment it is still often worth doing.
Can a non-resident buy U.S. property?
Yes. There is no citizenship or residency requirement to own real property in the United States, and owning it does not confer a visa. (Banner art.)
Coming next
Owning a landmark
Fabric rules versus co-op board. Stahl House / Palm Springs teaching lane. Outline only for now; the full landmark article lives elsewhere.
More elsewhereThis page stops at the doorway. The full landmark article (fabric rules, board tension, and the teaching lane) lives in a separate guide.