Manhattan Real Estate Attorney Natalia A. Sishodia Explains Who Pays Closing Costs in New York
NEW YORK, NY – September 10, 2026 – Buyers and sellers entering a New York real estate transaction each face a distinct set of closing costs, and understanding these charges before signing a contract can help protect both budget and legal position. Manhattan real estate attorney Natalia A. Sishodia of Sishodia PLLC (https://sishodia.com/who-pays-real-estate-closing-costs-in-new-york/) has released a detailed guide clarifying how closing costs are divided, how cash and financed purchases differ, and why property type can significantly change the final amount due at closing.
According to Manhattan real estate attorney Natalia A. Sishodia, both parties are responsible for their own set of charges, and neither side covers the other’s costs by default, though certain items can be shifted through negotiation. “A clear estimate of these fees and taxes makes it easier to plan a final budget,” says Sishodia. “Reviewing closing cost obligations before signing gives buyers and sellers the information they need to make sound decisions.”
Closing costs are charges due at closing in addition to the purchase price, including attorney fees, transfer taxes, lender charges, title insurance, and building fees that vary by property type and financing. Manhattan real estate attorney Natalia A. Sishodia notes that New York City buyers often estimate closing costs at 2 to 5 percent of the purchase price, with the final amount depending on the down payment, loan type, property type, and location.
On the buyer’s side, common charges include lender fees tied to mortgage financing, a prorated share of property taxes, the mortgage recording tax when a mortgage is recorded against New York City real property, attorney fees, condo or co-op building application fees, and title insurance for deeded property. Sishodia points out that the New York State mansion tax applies to residential purchases of $1 million or more, with a progressive rate scale that increases at thresholds beginning at $2 million.
Sellers typically face a different mix of expenses. Broker compensation, negotiated through the listing agreement and paid from the sale proceeds at closing, is often one of the largest costs. In a resale, the seller should budget for city and state transfer taxes unless the contract shifts payment. Attorney Sishodia explains that the New York City Real Property Transfer Tax applies at 1 percent when the price is $500,000 or less and 1.425 percent when the price exceeds that figure, while the New York State base transfer tax adds $2 for each $500 of consideration.
“In Manhattan, commission and transfer taxes can significantly reduce a seller’s net proceeds,” Sishodia observes. “Before closing, it is important to review payoff figures, transfer tax treatment, and adjustments so the closing statement matches the contract.”
Property type also plays a major role in determining costs. In a co-op transaction, the buyer purchases shares in a corporation and receives a proprietary lease, while condo and single-family buyers purchase deeded real property. Because of this distinction, title charges and the mortgage recording tax can apply when financing is used for a condo or single-family home but generally do not apply to co-op share loans. Co-op purchases frequently involve board application fees and possible flip taxes.
Financing choices further shape the final total. Attorney Sishodia notes that a mortgage adds lender fees a cash buyer avoids, including loan origination charges, appraisal costs, and a lender’s title insurance policy, along with the mortgage recording tax. Cash buyers still pay standard transaction expenses such as attorney fees, applicable taxes, building fees, and optional owner’s title insurance for deeded property. New development purchases can shift both the New York City and New York State transfer taxes from the seller to the buyer, and may add sponsor legal fees and working capital contributions.
Sishodia emphasizes that negotiating who pays closing costs is not automatic and depends on market conditions. “A seller credit can make a deal easier to close, but it may affect the purchase price, the appraisal, and loan approval,” she advises. Any credit must be documented in the purchase agreement and carried through to the closing statement.
For those buying or selling property in New York City, consulting a knowledgeable real estate attorney before signing can clarify which charges belong to each side and help avoid surprises at the closing table. A thorough contract review allows buyers and sellers to plan for taxes, lender charges, and building fees with a realistic figure in mind.
About Sishodia PLLC:
Sishodia PLLC is a New York City real estate law firm led by Managing Partner Natalia A. Sishodia, who holds a Master of Laws from Temple University’s James E. Beasley School of Law and a Master in Taxation from Fordham University’s Gabelli School of Business. The firm represents buyers, sellers, investors, and lenders in co-op, condo, single-family, and new development transactions throughout New York City, guiding clients from contract to closing. The office is located at 600 3rd Ave, 2nd Floor, New York, NY 10016. For consultations, call (833) 616-4646.
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Phone: (833) 616-4646
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Website: https://sishodia.com/
