Can You Buy an Apartment in NYC? Co-ops, Condos, and Closing Costs

Buying an apartment in NYC means choosing between a cooperative and a condominium, meeting the building’s financial standards, and budgeting for closing costs that run higher than almost anywhere else in the country. Anyone can buy, including non-U.S. citizens, but co-op boards hold wide power to approve or reject buyers, while condo boards generally cannot block a sale. The purchase typically takes several months from accepted offer to closing, and hiring a real estate attorney is standard practice on both sides of the deal.

Co-Op or Condo: Which One You’re Actually Buying

Most NYC apartments fall into one of two legal categories, and the difference shapes almost every part of the purchase.

A cooperative is a corporation that owns the whole building. When you buy a co-op, you don’t get a deed. You buy shares in the corporation and receive a proprietary lease giving you the right to live in a specific unit.¹ Your legal status is that of a shareholder-tenant.

A condominium works more like a traditional home purchase. You receive a deed to your individual unit plus a proportional interest in shared spaces like hallways, the lobby, and the roof.² The deed is recorded with the city’s Department of Finance, and the unit has its own tax lot.³

The practical difference shows up during the purchase. Co-op boards can reject applicants for almost any reason that doesn’t violate anti-discrimination law, and in most cases they aren’t required to explain why.⁴ Condo boards typically hold only a right of first refusal, meaning the board can match a buyer’s offer and purchase the unit itself, but cannot simply veto the sale. Condos are easier to buy into and generally cost more per square foot.

Financing follows the same split. Because co-op shares are legally personal property rather than real estate, you can’t take out a traditional mortgage. A co-op ownership interest is treated as a “cooperative interest” secured under Article 9 of New York’s Uniform Commercial Code.⁵ The lender places a lien on your shares and lease rather than on real property, through what’s called a share loan. Condo buyers use a standard mortgage with a lien on the real property, and generally have more lenders and loan products to choose from. Some co-op buildings maintain approved lender lists.

What You Need to Qualify

NYC buildings, especially co-ops, apply financial standards that go well beyond what a mortgage lender requires. These benchmarks exist to protect the building’s finances by making sure new owners can cover their ongoing costs.

Debt-to-income ratio: most co-ops want your total monthly debt payments, including projected housing costs, to stay below 25 to 28 percent of your gross monthly income. Some stricter buildings set the bar even lower.
Down payment: 20 percent is the floor. Many Manhattan co-ops require 25 to 50 percent, and some prestigious buildings demand all cash.
Post-closing liquidity: after paying your down payment and closing costs, you typically need six months to two years of carrying costs remaining in liquid accounts.

Condominiums are generally less restrictive. Lenders still evaluate your creditworthiness, but the condo board itself rarely imposes separate thresholds beyond what mortgage approval already demonstrates.

Non-U.S. citizens can buy in NYC. Some buildings require additional safeguards, such as placing one to two years of maintenance charges in escrow. Condominiums commonly allow purchases through LLCs or trusts, which appeals to buyers who want privacy or asset protection. Co-ops frequently restrict or prohibit entity purchases and require individual shareholders who are personally responsible for the building’s obligations under the proprietary lease.

The Board Package and Interview

If you’re buying a co-op, you’ll put together a board package: a detailed application showing your finances and background. Assembling it typically takes several weeks, and incomplete packages are a common source of delay. You should expect to gather:

Federal and state tax returns for the previous two to three years, with all schedules and W-2 or 1099 forms.
An employment verification letter confirming your salary, title, and length of employment.
Recent bank and brokerage statements for every account you’ll reference as an asset.
A net worth statement listing all assets against all liabilities.
Personal and professional reference letters. Most buildings ask for several.

The building’s managing agent reviews the package for accuracy before forwarding it to the board. Managing agents charge processing fees ranging from a few hundred to over a thousand dollars, and credit check fees typically add another $100 to $200 per applicant. Condo purchases involve less paperwork since the board’s review power is limited, though you may still need to submit financial documents and pay an application fee.

Once the managing agent confirms your package is complete, the co-op board reviews it over several weeks. If the board is satisfied, you’ll be invited to an in-person interview. The meeting is usually brief and conversational, focused on verifying your application and assessing fit.

What Boards Cannot Ask

Although co-op boards have broad discretion, they’re constrained by federal, state, and city anti-discrimination laws. The New York City Human Rights Law provides some of the broadest protections in the country, prohibiting housing discrimination based on race, color, national origin, religion, gender, sexual orientation, age, disability, marital status, family status, citizenship status, lawful source of income, partnership status, status as a veteran or active military service member, lawful occupation, and status as a victim of domestic violence.⁶ Interview questions touching any of those categories, including questions about plans for children, medical history, or immigration status, are prohibited.

Under current law, co-op boards are not required to give a reason for rejecting a buyer. Legislation has been proposed that would require written explanations for every denial, but as of early 2026, no such requirement has been enacted.⁴ If you believe a rejection was motivated by discrimination, you can file a complaint with the NYC Commission on Human Rights by calling 311.

Closing Costs and Taxes

Closing costs in NYC are among the highest in the country, often totaling 3 to 6 percent of the purchase price for a condo (higher with financing) and somewhat less for co-ops, which don’t carry title insurance.

Transfer Taxes

Two layers of transfer tax apply to most sales. The New York State transfer tax is $2 per $500 of the sale price, which works out to 0.4 percent.⁷ The seller customarily pays it, though the contract can allocate it differently.

New York City adds its own Real Property Transfer Tax (RPTT). For residential properties valued at $500,000 or less, the rate is 1 percent. Above $500,000, it rises to 1.425 percent.⁸ The seller typically pays, though in new-construction purchases the buyer sometimes absorbs it.

Mansion Tax

Any residential purchase of $1 million or more triggers the New York State mansion tax of 1 percent of the full sale price, paid by the buyer.⁷ At higher price points, an additional NYC supplemental mansion tax applies with graduated rates reaching up to 3.9 percent for sales of $25 million or more. Because the tax is calculated on the entire sale price rather than the amount above the threshold, it can be a substantial cost on seven- and eight-figure purchases.

Mortgage Recording Tax

If you finance with a mortgage or share loan, NYC imposes a mortgage recording tax combining state and city components.⁹ The total rate for residential properties in NYC is approximately 1.8 percent for loans under $500,000 and 1.925 percent for loans of $500,000 or more. The buyer pays most of this tax, with the lender covering a small portion. All-cash purchases avoid it entirely, which is one reason some buildings favor cash buyers.

Other Closing Costs

Attorney fees: real estate attorneys in NYC typically charge a flat fee for standard residential transactions.
Title insurance (condos only): premiums are state-regulated and typically run roughly 0.4 to 0.6 percent of the purchase price.
Appraisal fee: if you’re financing, the lender will require a professional appraisal, generally $500 to $800 for a standard NYC apartment.
Flip tax (co-ops): many co-op buildings charge a transfer fee when units change hands, commonly 1 to 3 percent of the sale price. Usually paid by the seller, though negotiable.
Move-in deposit: most buildings require a refundable deposit and sometimes a non-refundable fee.

New York law requires sellers to complete a Property Condition Disclosure Statement covering the home’s condition, environmental issues, and known defects. In practice, most NYC sellers instead give buyers a $500 credit at closing, which the statute permits as an alternative.¹⁰ For buildings constructed before 1978, federal law separately requires sellers to disclose any known lead-based paint hazards and give buyers a 10-day window for a lead paint inspection.¹¹

Tax Breaks Once You Own

New York City and State both offer programs that can meaningfully reduce the cost of owning, but you have to take specific steps to qualify.

The Cooperative and Condominium Tax Abatement reduces property tax for owners who use their apartment as a primary residence. The building’s board files the application on behalf of all eligible unit owners; you can’t apply individually. To qualify, you must certify to your board that the unit is your primary residence, you cannot own more than three residential units in the same development, and the unit cannot be owned by an LLC or business entity.¹² The filing deadline is generally in mid-February for the upcoming tax year. If you purchase after January 5, you become eligible beginning the following tax year.

The School Tax Relief (STAR) program provides a credit on school taxes for eligible homeowners. Basic STAR requires household income of $500,000 or less. Enhanced STAR, for homeowners 65 and older, requires household income of $110,750 or less.¹³ The property must be your primary residence, and income eligibility for 2026 benefits is based on your 2024 tax return. New homeowners register for STAR through the New York State Department of Taxation and Finance rather than through the city.

Subletting and Resale Limits

Before buying, understand what restrictions will apply if you later want to rent out or resell. Co-op buildings typically treat subletting as a privilege requiring board approval. Many co-ops only allow subletting after you’ve lived in the unit for a minimum number of years, and even then may limit you to one or two years of subletting within any five-year period. Some buildings prohibit it entirely.

Condos are generally more flexible. Most allow owners to rent out their units with fewer restrictions, though the condo’s bylaws may impose minimum lease terms or require board notification. If your long-term plans include renting the apartment out, review the building’s subletting policy carefully before making an offer.

Co-op resales also put the next buyer through the board approval process, which can make selling slower than a condo sale. Where a flip tax applies, factor it into your long-term ownership math.

1
New York State Senate. New York Cooperative Corporations Law 5 – Applicability of Business Corporation Law to Cooperative Corporations
2
New York State Senate. New York Real Property Law 339-E – Definitions
3
NYC.gov. Data and Lot Information
4
Office of the New York City Public Advocate. NYC Public Advocate Pushes for Co-Op Transparency Bills in Council Hearing
5
New York State Senate. New York Uniform Commercial Code UCC 9-102
6
NYC.gov. What Are the Protected Classes?
7
Department of Taxation and Finance. Real Estate Transfer Tax
8
NYC.gov. Real Property Transfer Tax (RPTT)
9
Tax.NY.gov. Mortgage Recording Tax
10
New York Department of State. Property Condition Disclosure Statement
11
U.S. Environmental Protection Agency. Real Estate Disclosures About Potential Lead Hazards
12
NYC.gov. Cooperative and Condominium Property Tax Abatement
13
Tax.NY.gov. STAR Eligibility