What Are the Three Main Types of Property Law?
Yuriy Moshes October 12, 2026 10:32 am
What Are the 3 Types of Property Law and Property Rights? Property law inside the
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When buying or selling a home, it’s easy to focus on price negotiations, mortgage approvals, or inspections—but many people forget about one major factor: closing costs.
These fees can significantly impact your bottom line — especially in New York City, where transaction costs are among the highest in the country.
A common question we hear at real estate closings is:
Who pays closing costs in NYC-buyer or seller?
The truth is, both parties usually pay a portion, but how those fees are split depends on New York law, local customs, financing structure, and negotiation strategy.
AUTHOR YURIY MOSHES, ESQ
Founding Member of Moshes Law, P.C.
During his years of practice, Yuriy has concentrated in litigation and real estate transactions as his areas of expertise
In this updated 2026 guide, we break down:
The expenses spent to complete a real estate transaction are referred to as closing costs.These fees cover the services required to legally and financially transfer property ownership from seller to buyer.
In New York, closing costs can range from 2% to 6% of the purchase price, and sometimes more in luxury markets.
Common Buyer Closing Costs:
Common Seller Closing Costs:
Some of these fees are fixed or state-mandated, while others—like attorney fees or title services—can vary depending on the professionals you choose.
Use our Buyer Closing Costs Calculator to get an accurate estimate based on New York properties.
In New York City, closing costs are divided between buyers and sellers depending on property type, transaction structure, and financing. Below is a 2026 breakdown of who typically pays each major expense.
| Expense | Paid By | Typical NYC Range |
|---|---|---|
| Broker Commission | Seller | 5%–6% of sale price |
| NYS Transfer Tax | Seller | 0.4% |
| NYC Transfer Tax | Seller | 1%–1.425% |
| Mansion Tax (Over $1M) | Buyer | 1%–3.9% |
| Mortgage Recording Tax (If Financing) | Buyer | 1.8%–1.925% of loan |
| Title Insurance (Condo/House) | Buyer | ~0.5% |
| Attorney Fees | Both Parties | $2,000–$5,000 |
Not sure what you’ll owe as a seller? Try this Seller Closing Costs Calculator to find out.
Buyer Responsibilities:
Fees charged by the lender to process the mortgage loan.
Protects the buyer against ownership disputes or title defects.
Required by lenders and essential for verifying the property’s value and condition.
Paid to the county clerk to officially record the deed and mortgage documents.
Covers legal representation to review documents, contracts, and closing details.
Often includes a few months of property taxes and homeowners insurance.
Seller Responsibilities:
Sellers are responsible for transfer taxes, which can be substantial in New York.
Typically 5–6% of the sale price, split between the buyer’s and seller’s agents.
Legal fees for preparing and reviewing the deed and handling closing tasks.
Any existing mortgage balance or other liens must be paid off at closing.
May include flip taxes or transfer fees imposed by the building.
The real estate market in New York City is unlike any other. Properties are often priced high, and the closing process includes several jurisdiction-specific fees and taxes.
Here’s what makes closing costs in New York stand out:
Learn more in our full guide: Real Estate Closing Costs in New York
Now that you know who typically pays closing costs, let’s explore some smart ways to manage or reduce them.
1. Negotiate Seller Concessions: Buyers can ask the seller to contribute a portion of their closing costs as part of the deal. This is more likely in a buyer’s market or if the home has been on the market for a while.
2. Time the Closing Date Strategically: Closing toward the end of the month can reduce prepaid interest charges. Sellers may also avoid an extra month of mortgage payments this way.
3. Compare Lenders and Title Companies
Buyers can save thousands by shopping around for better rates on:
Working with an experienced closing lawyer in NYC can also help avoid unnecessary charges.
4. Consider a Real Estate Attorney Consultation
If you’re unsure how to approach negotiations or want to ensure you’re not overpaying, schedule a real estate attorney consultation. A knowledgeable lawyer can:
Check out our post on Real Estate Attorney Consultation – 7 Key Closing Issues to understand what to expect.
5. Understand the TRID Rule
The TRID Rule (TILA-RESPA Integrated Disclosure) ensures transparency by requiring lenders to provide clear documentation of all closing costs. Reviewing your Loan Estimate and Closing Disclosure carefully can help catch unexpected fees.
For a detailed explanation, visit our TRID Real Estate Guide.
Whether you’re on the buying or selling side, consider these tips:
Understanding your closing obligations early helps you budget accurately and avoid surprises at the table.
Closing costs in NYC are complex and layered. Without proper planning, buyers and sellers can easily underestimate their true expenses.
Before signing a contract, consult with an experienced real estate attorney to:
At Moshes Law, we guide clients through every stage of the closing process — ensuring no unnecessary costs and no surprises at the table.
Schedule a consultation today and close with confidence.
Both parties — buyers pay financing-related costs; sellers pay transfer taxes and commissions.
Yes, especially seller concessions in a balanced market.
Buyer (financed): $30,000–$60,000
Seller: $70,000–$100,000
Generally higher for condos due to mortgage recording tax and title insurance.
Yes. They avoid mortgage recording tax and lender fees.
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