Buying and Selling Residential Property in New York in 2026: The Complete Resource Guide

Buying or selling residential property in New York in 2026 is procedurally different from doing the same transaction in almost any other state. New York is an attorney-state for real estate closings, the contract phase is more substantive than in most jurisdictions, transfer tax structures are layered between New York State and New York City, and the co-op transaction process is a category of its own with no clear analog elsewhere in the country. National real estate guides — and even most online resources written for buyers and sellers — do not adequately address the New York specifics.

This guide covers both sides of a New York residential transaction — buying and selling — with current 2026 procedural details, cost ranges, and the official government resources buyers and sellers actually need. It is written by a New York real estate attorney for individuals who are at any stage of the process, from initial research through post-closing. Throughout, links are provided to authoritative sources at New York State, New York City, and federal government agencies, with context that explains what each resource is useful for. This guide is not a substitute for retaining counsel on a specific transaction.

Real estate tax rates, recording fees, government program parameters, and disclosure requirements change frequently. The specific figures cited in this guide were current as of the publication date. For any actionable decision — calculating exact closing costs, determining mansion tax exposure, evaluating tax credits — verify the current information at the official sources linked throughout this post or consult a New York real estate attorney.

Why New York Is Different: The Attorney-State System

New York is one of approximately 20 states where attorneys play a central role in residential real estate transactions. Unlike states such as California or Texas — where title companies and escrow agents handle the closing process and attorney involvement is optional — New York requires substantive attorney work on both sides of every residential transaction.

The buyer’s attorney in a New York residential closing handles contract review and negotiation, coordinates due diligence including the title search, raises and resolves title objections, reviews the lender’s closing documents, and represents the buyer at the closing table. The seller’s attorney drafts the contract of sale, coordinates mortgage payoff, prepares the deed and all transfer documents, and ensures compliance with applicable transfer tax filings. In practice, the attorneys on both sides drive the transaction forward from contract execution through closing — a structural role that real estate agents and title companies fill in non-attorney states.

This attorney-state structure affects both timing and cost. Transactions take longer because substantive legal review happens at multiple stages rather than being streamlined through a title company’s closing department. Costs are higher because attorney fees are an additional line item that buyers and sellers in non-attorney states do not pay. But the tradeoff is meaningful: contract terms are individually negotiated rather than standardized, due diligence is more thorough, and the buyer and seller each have independent legal representation protecting their specific interests throughout the process.

Out-of-state buyers who attempt to close a New York residential purchase without attorney representation routinely encounter problems — contracts signed without adequate contingencies, title issues discovered too late to resolve before the scheduled closing, and transfer tax obligations that were not anticipated in the buyer’s cost projections. Title insurance in New York is provided by separate title companies, not by the attorneys. The attorney coordinates with the title company, reviews the title commitment, and raises objections on behalf of the client, but the title insurer is a distinct entity issuing its own policy.

For a detailed overview of how residential closings work at our firm, including flat-fee structures and typical timelines, see our residential closings practice page.

Buying Residential Property in New York: The Process

From a buyer’s perspective, the New York residential transaction process typically unfolds in five stages — pre-offer preparation, contract negotiation, due diligence and financing, closing preparation, and closing. The timeline from accepted offer to closing is typically 60–90 days for financed purchases and 30–45 days for cash transactions, though co-op board approval can add several additional weeks.

Stage 1 — Pre-Offer Preparation

Before making any offer on a New York property, buyers should complete several preparatory steps that will strengthen their position and avoid delays once a deal is in contract.

Mortgage pre-approval — not just pre-qualification — is the baseline expectation in the NYC market. Pre-qualification is a preliminary estimate based on self-reported financial information. Pre-approval involves a lender’s review of actual income documentation, credit history, and assets. In competitive markets, sellers and listing agents routinely disregard offers from buyers who have only a pre-qualification letter. Buyers planning to finance should secure pre-approval before beginning their property search.

Selecting a buyer’s attorney early is equally important. Once an offer is accepted, the contract negotiation phase moves quickly — typically 5–10 business days — and engaging counsel at that point leaves less time for thorough contract review. Buyers who already have an attorney relationship in place can move from accepted offer to executed contract more efficiently.

Understanding the building type matters in New York more than in most markets. The differences between a co-op, condo, single-family home, and multi-family property are not just structural — they affect the legal nature of the purchase, the financing available, the approval process, and the closing costs. Buyers new to New York real estate should understand these distinctions before making offers.

For NYC properties, buyers can research the property’s transaction history, existing mortgages, and recorded documents through NYC ACRIS (Automated City Register Information System), the city’s free public records database. Buyers considering properties in buildings that may be rent-stabilized should consult the NY State Division of Housing and Community Renewal (DHCR) for unit registration information.

Stage 2 — Contract Negotiation

The contract phase in a New York residential transaction is more substantive than in most states. In New York, an accepted offer is typically non-binding — either party can walk away until both have signed the contract of sale. This is a critical distinction from states where the offer itself becomes a binding agreement upon acceptance.

Under NY General Obligations Law § 5-703, any contract for the sale of real property must be in writing to be enforceable. The contract of sale is the central document of a New York residential transaction, and it is negotiated between the buyer’s attorney and the seller’s attorney (who typically drafts the initial version). Key elements include the purchase price, the closing date, the amount of the earnest money deposit, the condition of title, permitted exceptions, and all contingencies.

Earnest money deposits in NYC are typically 10% of the purchase price, held in escrow by the seller’s attorney. This is significantly higher than the 1–3% customary in many other markets. The deposit is at risk if the buyer defaults — making the contract contingencies especially important.

Customary contingencies in New York residential contracts include the financing contingency (allowing the buyer to cancel if mortgage approval is not obtained within a specified period), board approval for co-ops, building inspection, and title. The mortgage contingency clause and its timing requirements are among the most frequently litigated provisions in New York residential contracts. The contingency period is typically 30–45 days, and the buyer must act diligently within that period — simply allowing the period to lapse without obtaining a formal denial letter may not be sufficient to invoke the contingency.

In competitive markets, some buyers waive contingencies to strengthen their offers, particularly financing contingencies in cash transactions or board approval contingencies in condo purchases. This carries real risk. A buyer who executes a contract without a financing contingency and then fails to obtain mortgage approval will likely forfeit the 10% earnest money deposit.

Stage 3 — Due Diligence and Financing

Once the contract is executed, the due diligence phase begins in parallel with mortgage processing. For condo and co-op purchases, building-level due diligence includes review of the offering plan, the building’s most recent audited financial statements, board meeting minutes (typically the last two years), current capital reserves, any pending litigation against the building, and proposed or recently enacted special assessments. This review is conducted by the buyer’s attorney and provides the buyer with a clear picture of the building’s financial health and governance.

The title search is one of the most important components of due diligence. The title company examines the chain of title back several decades, identifying any clouds, liens, encumbrances, judgments, or other issues that could affect the buyer’s ownership. The buyer’s attorney reviews the title report, raises objections to any problematic items, and works with the seller’s attorney to resolve them before closing.

For single-family and townhouse purchases, a building inspection is standard. The inspection covers structural integrity, HVAC systems, electrical and plumbing, roof condition, and environmental concerns including lead paint (in pre-1978 buildings), asbestos, and oil tank presence. NYC brownstone buyers should pay particular attention to foundation and structural reports, given the age of much of the housing stock.

On the financing side, federal regulations under TRID (TILA-RESPA Integrated Disclosure) require the lender to provide a Loan Estimate within three business days of the mortgage application and a Closing Disclosure at least three business days before closing. The U.S. Consumer Financial Protection Bureau (CFPB) provides detailed guidance on these disclosures and what buyers should review. The appraisal, ordered by the lender and paid by the buyer, must support the purchase price for the loan to proceed.

For co-op purchases, board approval is the most variable and often the most stressful stage. The buyer submits a comprehensive application package including financial statements, tax returns, employment verification, personal and professional reference letters, and a detailed financial disclosure. The board reviews the package, conducts an interview, and votes on approval. Boards can reject buyers for virtually any non-discriminatory reason, and they are not required to explain their decisions. The board approval process typically takes 4–8 weeks and has no guaranteed outcome. HUD’s home buying resources provide additional general guidance for buyers navigating these processes.

Stage 4 — Closing Preparation

The two weeks before closing involve intensive coordination between the buyer’s attorney, seller’s attorney, title company, and lender. The title insurance commitment — the preliminary commitment issued by the title company detailing the terms under which it will insure the buyer’s title — is reviewed and any remaining objections are resolved.

The final walkthrough, typically conducted 24–48 hours before closing, allows the buyer to verify that the property is in the condition specified in the contract, that any agreed-upon repairs have been completed, and that the seller has vacated (or will vacate by the agreed-upon date).

Wire transfer setup requires particular care. Wire fraud targeting real estate transactions is widespread — fraudsters intercept email communications and send altered wire instructions to buyers, diverting closing funds to fraudulent accounts. Buyers should never wire funds based solely on emailed instructions. Always verbally confirm wire instructions with the receiving party at a known phone number before initiating any transfer.

The buyer’s attorney prepares a closing cost summary, coordinates with the lender on the Closing Disclosure, and assembles the closing binder. For co-op and condo purchases, the buyer or the buyer’s attorney must coordinate with the building management company for closing-day access and any required move-in documentation.

Stage 5 — Closing Day

In New York, closings are typically conducted in person at the buyer’s attorney’s office, the seller’s attorney’s office, the title company’s office, or the lender’s office. Remote closings are available in limited circumstances but are not yet standard practice for most residential transactions.

The buyer signs the deed acceptance, mortgage and note (if financing), the settlement statement, transfer tax forms, and the title insurance application. The buyer brings certified or wire-transferred funds for the balance due at closing, government-issued identification, and proof of homeowner’s insurance (the insurance binder, typically required by the lender). The title company representative is present at closing to verify document execution, collect funds, and coordinate post-closing recording of the deed. Keys and possession are transferred at or immediately after closing. In NYC, recording of the deed is typically completed same-day or next business day.

Buyer Costs in New York: The 2026 Breakdown

Buyer closing costs in New York City typically total 3–6% of the purchase price. The range is wide because costs vary significantly based on purchase price (mansion tax exposure), financing structure (mortgage recording tax), and building type (co-op application fees, move-in deposits). The following figures were current as of the publication date; verify current rates at the NY State Department of Taxation and Finance and the NYC Department of Finance before relying on any specific calculation.

• Buyer’s attorney fee: $2,000–$5,000 (flat fee in most residential transactions)
• Title insurance: Lender’s policy (required by the mortgage lender) and owner’s policy (strongly recommended); typically 0.4–0.5% of purchase price combined
• Title search and exam fees: $300–$600
• Recording fees: Vary by county; typically $200–$500
• Mortgage recording tax: Approximately 1.8–1.925% in NYC, with the buyer typically paying 1.8% and the lender paying the balance per customary practice
• Mansion tax: For purchases of $1 million or more; begins at 1% with progressive brackets reaching 3.9% for purchases over $25 million — verify current brackets before calculating
• Lender fees: Origination fee, application fee, appraisal fee ($400–$800), credit report fee
• Survey: $400–$800 (for single-family and townhouse purchases)
• Building fees: Application and move-in fees for condos and co-ops (vary by building)
• Co-op flip tax: If applicable and paid by buyer per building policy
• Prepaid items: Homeowner’s insurance, property tax escrow, prepaid interest

Selling Residential Property in New York: The Process

From the seller’s perspective, the transaction process is structurally similar to the buyer’s, but the obligations, costs, and timing pressures are different. Selling in New York is administratively heavier than in most states, and proper preparation before listing can shorten the timeline and reduce friction at the closing table.

Stage 1 — Pre-Listing Preparation

Sellers should select a listing agent and understand the listing agreement structure before going to market. The two common listing agreement types — exclusive right to sell and exclusive agency — differ in how commissions are earned. Commission structures are increasingly negotiable following the 2024 NAR settlement. Sellers should discuss commission terms, marketing plans, and pricing strategy with their listing agent based on comparable sales data.

Selecting a seller’s attorney early is important because the seller’s attorney drafts the contract of sale and handles most of the transactional work once an offer is accepted. Having counsel in place before listing avoids delays during the contract negotiation phase.

Document gathering before listing saves time later. Sellers should assemble the deed to the property, the prior title insurance policy (if available), recent property tax bills, the current mortgage statement, utility records, the certificate of occupancy, any prior surveys and inspection reports, and building plans if available. For condo and co-op sellers, the building’s financial statements, offering plan, and rules and regulations should be readily accessible.

Tax implications deserve early attention. Sellers should understand their potential capital gains exposure, the primary residence exclusion under IRC § 121 (which may exclude up to $250,000 in gain for single filers or $500,000 for married couples filing jointly), and depreciation recapture for properties that were previously used as rentals. IRS Publication 523 (Selling Your Home) is the authoritative federal resource for calculating gain and determining exclusion eligibility.

Stage 2 — Listing and Offer Acceptance

The NYC listing process typically involves professional photography, staging (optional but increasingly common), and listing on the relevant multiple listing services and consumer-facing platforms. Open houses and private showings are standard. In competitive markets, sellers may receive multiple offers and must evaluate not just price but also financing strength, contingencies, and the buyer’s ability to close within the proposed timeline.

When a seller accepts an offer, the deal is still non-binding until the contract of sale is executed by both parties. The seller’s attorney drafts the contract and sends it to the buyer’s attorney for review and negotiation. This phase typically takes 5–10 business days. During this period, either party can still walk away — a reality that surprises many out-of-state sellers accustomed to markets where accepted offers are immediately binding.

Stage 3 — Contract Through Closing

Once the contract is executed, the seller’s obligations include responding to the buyer’s due diligence requests (building documents, financial statements, board minutes for co-ops and condos, recent capital expenditures), resolving any title objections raised by the buyer’s attorney, and obtaining payoff letters from existing mortgage holders.

The seller’s attorney prepares all transfer documents: the deed, transfer tax returns (both NY State and NYC RPTT), FIRPTA certification (for non-U.S.-citizen sellers), and the smoke and carbon monoxide detector affidavit required at closing for residential property transfers in New York. The seller must be prepared for the buyer’s final walkthrough, typically 24–48 hours before closing, and must deliver the property in the condition specified in the contract.

Sellers with tenants in place face additional obligations. The sale must comply with applicable tenant protections, and the buyer will require disclosure of all existing leases, rent rolls, and security deposits held. For properties in rent-stabilized buildings, DHCR registration records and regulatory compliance history are material to the transaction. The nonpayment proceeding process is relevant context for buyers evaluating rental properties with tenants who may be in arrears.

Seller Costs in New York: The 2026 Breakdown

Seller closing costs in NYC typically total 8–10% of the sale price when including brokerage commissions. Verify current rates at the NYC Department of Finance RPTT page and the NY State Department of Taxation and Finance before relying on specific figures.

• Listing agent commission: Typically 5–6% of sale price, split between listing and buyer’s agents (increasingly negotiable post-2024 NAR settlement)
• Seller’s attorney fee: $2,000–$5,000 (flat fee in most cases)
• NY State transfer tax: $4 per $1,000 of consideration (0.4%) — verify current rate
• NYC Real Property Transfer Tax (RPTT): 1% for sales under $500,000; 1.425% for sales of $500,000 or more — verify current brackets
• Mortgage payoff: Outstanding principal balance plus any prepayment penalties
• Title closer fee: Paid by seller per NYC custom
• Move-out fees: For condos and co-ops (vary by building)
• Flip tax: In many co-op buildings, typically paid by seller, ranging from 1–3% of sale price
• Capital gains tax: Federal and state exposure depends on basis, holding period, and applicable exclusions
• FIRPTA withholding: 15% of sale price for non-U.S.-citizen sellers absent a reduced withholding certificate — see IRS FIRPTA guidance

Co-op vs. Condo vs. Single-Family: What’s Different in New York

New York City’s residential market is dominated by two building types that do not exist in most of the country at the same scale: co-ops and condos. Understanding the legal and practical differences between these building types and single-family homes is essential for any buyer or seller approaching the New York market.

Co-op (Cooperative) Apartments

When purchasing a co-op, the buyer is not purchasing real property. Instead, the buyer purchases shares in a corporation that owns the building, plus a proprietary lease granting the right to occupy a specific apartment. Most NYC residential buildings constructed before 1980 are structured as co-ops, making this the most common building type in the city by unit count.

Co-op purchases require board approval. The board can reject any buyer for almost any non-discriminatory reason and is not required to explain its decision. Monthly maintenance fees are typically higher than condo common charges because maintenance includes the building’s underlying mortgage payments and property taxes (which are assessed to the corporation, not to individual shareholders). Restrictions on subletting, renovation, and use are common. A flip tax — typically 1–3% of the sale price, paid by the seller — is charged by many co-op buildings on resale. Some buildings impose financing restrictions including minimum down payment requirements and post-closing liquidity thresholds.

Condo (Condominium) Apartments

A condo purchase is a purchase of real property — the buyer owns the unit itself, with an undivided interest in the common elements of the building. Condos are more common in newer buildings (post-1980) and in luxury developments. No board approval is required for purchase; the condo board typically has only a right of first refusal, which is rarely exercised.

Condos carry higher purchase prices than comparable co-ops but lower monthly common charges (because the underlying mortgage and property taxes are assessed directly to the unit owner, not to the building corporation). Condos offer greater flexibility for subletting, pied-à-terre ownership, and investment purchases, making them more attractive to foreign buyers and investors. Title insurance is available for condos in the same manner as for any real property purchase.

Single-Family and Multi-Family Homes

Single-family homes, townhouses, brownstones, and small multi-family buildings (2–4 units) are most common in the outer boroughs — Brooklyn, Queens, the Bronx, and Staten Island — and in surrounding counties including Nassau, Suffolk, and Westchester. The buyer purchases real property in fee simple with no board approval, no maintenance or common charges, and full responsibility for property maintenance, taxes, insurance, and repairs. Financing flexibility is greatest for these property types, and the transaction process is more straightforward than for co-ops or condos, though single-family home purchases involve inspection and survey costs that apartment purchases typically do not.

Government and Authoritative Resources for New York Real Estate

The following resources are organized by use case. Each is an official government or quasi-government source that provides current, authoritative information relevant to New York residential real estate transactions.

For Property Research and Title Information

NYC ACRIS (Automated City Register Information System) is the primary source for property records in New York City. Buyers and sellers can search deeds, mortgages, liens, and other recorded documents for any NYC property at no cost. For properties outside the five boroughs, each county clerk’s office maintains its own records system — Nassau, Suffolk, Westchester, and other surrounding counties each have separate online portals.

The NYC Department of Finance property tax search provides current tax bills, assessment values, and payment history for NYC properties. The NY State Unified Court System case search allows buyers to check for any litigation involving the property or its current owner.

For Tax and Cost Calculations

The NY State Department of Taxation and Finance publishes current mansion tax brackets, transfer tax rates, and mortgage recording tax rates. This is the authoritative source for verifying any tax figure cited in a closing cost estimate. The NYC Department of Finance publishes RPTT rates and provides property tax information. For federal tax questions including capital gains, FIRPTA, and the primary residence exclusion under IRC § 121, the IRS is the authoritative source.

For Disclosure and Building Safety Requirements

New York sellers of 1–4 family residential properties are required to provide a Property Condition Disclosure Statement under Real Property Law Article 14. For buildings constructed before 1978, federal lead-based paint disclosure is mandatory. For pre-1960 NYC buildings, additional local lead paint disclosure requirements under NYC Local Law 1 apply.

The NYC Department of Housing Preservation and Development (HPD) maintains records of housing code violations, lead paint registration, and rental property regulation. The NYC Department of Buildings (DOB) provides information on permits, certificates of occupancy, and building violations — essential research for any buyer evaluating a property’s compliance history. Sellers must provide a smoke and carbon monoxide detector affidavit at closing for all residential property transfers in New York.

For Tenants in Properties Being Sold

When a rental property with tenants in place is being sold, the transaction must comply with applicable tenant protections. If the building contains rent-stabilized units, the NY State Division of Housing and Community Renewal (DHCR) maintains registration records and regulatory guidance. The Good Cause Eviction Law (effective April 20, 2024) may apply to certain transactions where the buyer plans changes that could affect existing tenancies. Buyers of occupied rental properties should conduct thorough tenant due diligence as part of the transaction.

For Buyers Seeking Mortgage Financing

The U.S. Consumer Financial Protection Bureau (CFPB) provides comprehensive guidance on TRID disclosure rules, Closing Disclosure timing requirements, and mortgage comparison tools. HUD-approved housing counseling agencies offer free or low-cost guidance for first-time buyers. The NY State Mortgage Agency (SONYMA) administers first-time buyer programs and down payment assistance for eligible New York purchasers. FHA loan information is available through HUD for buyers seeking lower down payment options.

For Sellers with Specific Tax Situations

IRS Publication 523 (Selling Your Home) covers the capital gains exclusion under IRC § 121, depreciation recapture calculations, and basis determination — essential reading for any seller calculating potential tax exposure. The IRS FIRPTA page details withholding requirements for non-U.S.-citizen sellers, including the reduced withholding certificate process that may lower the 15% default withholding rate. The NY State Department of Taxation and Finance provides guidance on NY State capital gains treatment and withholding requirements for non-resident sellers.

When to Hire a New York Real Estate Attorney

Real estate transactions in New York are attorney-state transactions. Representation is functionally required, not optional. The practical question for buyers and sellers is when to engage counsel and what level of involvement to expect.

For buyers, the answer is straightforward: engage a real estate attorney before signing any contract. Many buyers make the mistake of signing first and engaging counsel afterward, by which point the leverage to negotiate contract terms has often been lost. For first-time buyers, engaging counsel earlier — even during the offer phase — provides guidance on building type, building diligence, and contract structure that can prevent costly mistakes. For complex transactions (estate-related purchases, foreign buyer transactions, investment properties, multi-family buildings with tenants in place), engaging counsel before making the offer is advisable.

For sellers, engage a seller’s attorney as soon as the property is listed, or earlier if the property has unusual characteristics. Sellers with tenants in place, prior unpermitted work, title clouds, prior mortgage modifications, or complex title histories should engage counsel before listing. Sellers planning a 1031 exchange should coordinate with both their attorney and a qualified intermediary early in the process — the intermediary must be in place before closing for the exchange to qualify.

Our real estate practice handles purchases and sales across the five boroughs and surrounding counties, with flat-fee representation in most residential transactions. The attorneys at Yazdi Law work with buyers and sellers at every stage of the process.

Frequently Asked Questions

Contact Yazdi Law for Your New York Real Estate Transaction

Whether buying or selling residential property in New York in 2026, the procedural complexity of the transaction makes attorney representation a practical necessity, not an optional add-on. The contract phase is more substantive than in most states. The closing costs are layered between state and city taxes. The co-op transaction process has no clear analog elsewhere in the country. And the consequences of missing a contract contingency deadline, overlooking a title cloud, or mishandling a transfer tax filing can extend the timeline by weeks and cost the parties thousands of dollars.

Yazdi Law represents buyers and sellers in residential real estate transactions across New York City and the surrounding counties. The firm handles purchases and sales of co-ops, condos, single-family homes, and small multi-family buildings, with flat-fee representation in most cases. Our office is located at 261 Madison Avenue, Suite 1035, in Manhattan. Representation is available in English and Farsi. Call (917) 565-7286 for a consultation, or use the contact form to schedule a discussion of your transaction.