Understand the buyer costs that may come with a sponsor purchase including transfer taxes, mansion tax, attorney fees, working capital contributions, and other closing expenses.
Estimated Closing Costs
$113,500
Total Cash Needed$513,500
Buyer Advantage−$50,000
Cash Needed After Illustrative Share$463,500
Example based on a 5% sponsor-paid buyer-broker commission, of which your share is 2.5% of the purchase price. Sponsors sometimes offer more than a resale seller and sometimes less, so this is an example rather than a rate. Régis shares 50% of the commission he actually receives. Closing costs and the Buyer Commission Share are separate. Nothing above changes: the taxes, fees and purchase price are unaffected. This line only shows what the share would offset. How it works
Purchase Price
$2.0M
Down Payment
$400K
Amount Financed
$1.6M
Estimated Closing Costs
$114K
Cash Needed After Advantage
$464K
Key Cost Drivers
Mansion Tax
$25,000
Applies to qualifying purchases of $1M or more.
NYS & NYC RPTT Transfer Taxes
$36,500
NYC transfer taxes may apply when a property changes ownership and, in certain new development or sponsor transactions, may be passed to the buyer depending on the negotiated contract terms.
Title Insurance
$9,000
Often applies to condo and house purchases.
Mortgage Recording Tax
$30,800
Applies when financing is used.
Attorney & Sponsor Fees
$5,500
Includes buyer attorney fees and sponsor-related legal/document fees.
Other
$6,700
Includes board application, move-in, title search, and other miscellaneous fees.
Detailed Breakdown
“In many NYC new development purchases, buyers may be responsible for transfer taxes, sponsor attorney fees, and other building-specific charges unless negotiated otherwise.”
Fee TypeAmount
NYC RPTT (Transfer Tax)$28,500
NYS Transfer Tax$8,000
Sponsor Attorney Fees$2,500
Total Estimated Closing Costs$113,500
Frequently Asked Questions
Need Help Reviewing New Development Costs?
New development purchases can involve sponsor fees, transfer taxes, incentives, attorney fees, and closing terms that deserve careful review before you move forward. Régis provides private buyer guidance to help you understand the full financial picture, negotiate with clarity, and identify where the Buyer Advantage may apply.
