Costs — 9 min read
Closing costs in New York and New Jersey, line by line
Most closing statement surprises come from three or four line items. Here is what each charge is and who typically pays it.
Title premium
The premium is calculated from the insured liability — usually the purchase price for the owner's policy and the loan amount for the lender's policy — using bracketed rates. When both are issued at the same closing, the lender's policy is normally priced at a simultaneous-issue rate rather than at full premium.
Search, examination and settlement fees
These cover the record examination, municipal and departmental searches, document preparation and the closing itself. They vary by county and by the complexity of the file, not by the price of the house.
Recording fees and transfer taxes
Government charges depend on jurisdiction and document count, so they are estimated until the final document set is known.
- Deed and mortgage recording fees, priced per document and often per page
- New York: real property transfer tax, plus mortgage recording tax on financed purchases
- New Jersey: realty transfer fee on the seller, and the mansion tax on qualifying purchases
- County and municipal surcharges that differ across the region
Endorsements
Lenders routinely require endorsements — environmental protection, survey, variable rate, condominium or PUD — each with its own charge. Ask for the lender's closing instructions early so the endorsement set is priced correctly.
How to read your estimate
Treat any figure marked to be confirmed as provisional. Recording charges, municipal searches and per-diem interest change until the final numbers are verified against the county and the lender.
Questions
Good to know.
It is negotiable and driven by local custom and the contract. In many New Jersey purchases the buyer pays; New York practice varies by transaction and county.
Ready when you are.
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