Closing costs for purchasing a cooperative apartment (co-op) are similar to those for a traditional condo or house but may include some unique fees related to the co-op structure. Here’s a detailed breakdown of common closing costs you might encounter when buying a co-op:

1. Down Payment:

• Typically: 20% of the purchase price, though this can vary based on the co-op’s requirements and the lender.

2. Co-op Application Fee:

• Fee: $100 to $500 or more, depending on the co-op board. This covers the cost of processing your application to join the co-op.

3. Credit Check Fee:

• Fee: $50 to $150. This covers the cost of obtaining your credit report.

4. Board Interview Fee:

• Fee: Some co-ops charge a fee for the board interview or review process, which can vary.

5. Appraisal Fee:

• Fee: $300 to $600. This is for having the property appraised to determine its market value.

6. Loan Origination Fees:

• Fee: Typically 0.5% to 1% of the loan amount. Charged by the lender for processing the mortgage application.

7. Title Search and Title Insurance:

• Fee: $300 to $800. Title insurance protects against issues related to the co-op’s ownership records.

8. Attorney Fees:

• Fee: $1,000 to $3,000. Legal fees for reviewing the co-op’s financials, bylaws, and purchase agreement.

9. Recording Fees:

• Fee: $100 to $500. Covers the cost of recording the transaction with local authorities.

10. Transfer Fees:

• Fee: $500 to $2,000. Some co-ops charge a transfer fee to cover the cost of updating ownership records.

11. Move-In Fees:

• Fee: $100 to $500. Sometimes charged by the co-op to cover administrative costs associated with moving in.

12. Maintenance Fees (Prepaid):

• Fee: You may need to prepay one or more months of maintenance fees, which can vary widely depending on the co-op. Maintenance fees cover the building’s operating costs and services.

13. Property Taxes:

• Fee: If applicable, you might need to pay a prorated amount for property taxes based on the time of year you close.

14. Escrow Fees:

• Fee: $100 to $500. Charged by the escrow company for managing the transaction process.

15. Homeowners’ Association (HOA) Fees:

• Fee: If the co-op is part of an HOA, there may be additional fees or assessments.

Summary of Estimated Closing Costs:

• Typical Range: Closing costs for a co-op generally range from 2% to 5% of the purchase price, but this can vary based on location, the co-op’s specific fees, and the overall transaction complexity.