$17,976.25), you will be obligated to pay the Mansion Tax since the aggregate of the purchase price plus the transfer taxes ($985,000 + $17,976.25) now exceeds $1 million. • Mortgage Recording Tax (applicable to Condos and Houses only). As previously described, if you purchase more than one co-op or condo apartment in the same building simultaneously, the City of New York takes the position that this is a commercial transaction and will apply the commercial real property transfer tax rate of two point six two five (2.625%) percent to the transaction. Similarly, if you have obtained a loan for two condominium units to be purchased simultaneously New York State taxing authorities take the position that the purchase of more than one condo unit is a commercial transaction, and the mortgage recording tax will also be imposed at the commercial tax rate. Currently, the mortgage recording tax for commercial purposes is two point eight zero (2.80%) percent of the mortgage amount. Mortgages made within a 12-month period of each other for the same property are also aggregated for the mortgage tax computation. If you take out a second (subordinate) mortgage within 12-months of taking out a first mortgage and the aggregated amount of the mortgages is greater than $500.000, you must pay the commercial mortgage recording tax rate on the second mortgage plus the difference between the commercial mortgage tax and the mortgage tax previously paid on the first mortgage. • Working Capital Contribution. Generally, you will be required to pay an amount equal to two month’s common charges as a non-refundable contribution to the building’s working capital fund. • Sponsor’s Attorney’s Fee. You may be required to pay the sponsor’s attorney for drafting the closing documents and attending the closing. The fee is generally between $2,500 and $3,500.
CLOSING COST information above provided by Schuman and
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