New York metro

New York City, NY

In New York an accepted offer binds no one until the attorney-drafted contract is signed and the deposit paid, so all diligence happens before signing. Co-op boards can reject buyers without a reason, and a stack of transfer, mansion and mortgage recording taxes makes closing costs among the highest in the country.

💡 Upside tip

Before counting on an addition, look the address up in ZoLa and the LPC landmarks map: a landmark or historic-district designation can block rear and rooftop additions, while a one- or two-family house outside them may now add an 800 sq ft ADU under City of Yes.

Offers & competition

The seller's attorney drafts the contract, the buyer signs first with a customary 10% deposit, and the deal binds only when the seller countersigns; until then either side can walk. There is no general inspection contingency, so inspect and review co-op or condo financials before signing.

Closing & who pays

Attorneys run the deal on both sides. Co-op buyers purchase shares plus a proprietary lease, face a board interview and financial package, and close with a UCC lien search instead of title insurance; condos close by deed with normal mortgages. NYC mortgage recording tax is 1.8% on loans under $500,000 and 1.925% at or above (co-ops exempt).

Transfer taxes

Sellers pay NYS transfer tax (0.4%, or 0.65% on homes of $3M or more) and NYC RPTT (1% up to $500,000, 1.425% above). Buyers pay the mansion tax on the whole price from $1M (1% rising in tiers to 3.9% at $25M+), so prices just over a tier line cost more; on sponsor new-development sales the buyer usually pays the seller's taxes too. Across the river in New Jersey, a seller-paid Graduated Percent Fee of 1% to 3.5% has applied to $1M+ sales since July 10, 2025.

Seller disclosures

Since March 20, 2024 the Property Condition Disclosure Statement is mandatory for 1 to 4 family homes, the old $500 credit opt-out is gone, and it now includes flood-risk, flood-history and flood-insurance questions. Condos and co-ops are excluded, so their diligence rests on building financials and minutes.

What you can build

City of Yes for Housing Opportunity (Dec 2024) allows one ADU per one- or two-family home, up to 800 sq ft with no parking required; detached ADUs must sit at least 5 ft from lot lines, max 2 stories or 25 ft. Basement units still need state-law changes, ADUs are curtailed in some flood zones, and the Landmarks Preservation Commission must approve most exterior work in historic districts.

Permits & records

DOB NOW and the legacy BIS system show permits, violations, complaints and Certificates of Occupancy; pre-1938 buildings may lack a CO and use a Letter of No Objection instead. ACRIS holds deeds and liens, HPD Online lists housing-code violations, and minor alterations typically take weeks to a few months.

Property tax

One- to three-family homes are Class 1, assessed at 6% of market value with increases capped at 6% a year and 20% over 5 years. Co-ops and condos are Class 2 and valued as if they were rentals, which keeps their assessments low, and STAR credits plus the co-op/condo abatement can reduce bills.

Rent rules

Buildings with 6 or more units built before 1974 are generally rent-stabilized, and the 2019 HSTPA ended most paths to deregulation, so legal rents rise only by the Rent Guidelines Board's annual order. The 2024 Good Cause Eviction law also caps increases on many non-stabilized units at CPI plus 5% or 10%, whichever is lower, with small-landlord exemptions.

Key risks

Local Law 97 fines buildings over 25,000 sq ft $268 per metric ton of CO2e above their limit each year, with much stricter limits from 2030, which can hit co-op and condo budgets; ask for the building's compliance report. Waterfront areas face post-Sandy flood risk, so check the NYC Flood Hazard Mapper (with 2050s and 2080s projections) and remember that remodeling over 50% of value in a FEMA flood zone triggers full flood-code compliance.

⚠ Still verifying

Not re-verified against official pages for 2026: NYS and NYC transfer tax and mansion tax schedules (believed unchanged since 2019), mortgage recording tax rates, final City of Yes ADU geographic exclusions, the Rent Guidelines Board order for leases from Oct 1, 2026, current Good Cause CPI figures, NYC FY2027 class tax rates, and whether the LL97 penalty is indexed.

Official sources

Updated: 2026-10 · Summaries of public rules as of the date shown. Not legal or tax advice. Always confirm with the official source.