Co-op Closing Costs

Hmm, checking my spreadsheet, I didn't pay a Transfer Agent Fee. Maybe I have it marked as something else. What is it for? I had to pay a $500 move in bond, but it was refundable.

The seller pays Transfer Agent Fees. I think it's 1% under $500K and 1.4% if more. I also posted a "bond" that I got back for move-in. Some buildings, or management companies, will nickel and dime you on anything and everything.

Some buildings justify the 'move-in/out' fee by saying they have to pay someone to watch the service entrance door, as it needs to remain open for the movers who aren't allowed to use the main entrance. Also to place padding in the elevators and boards on the hallway carpets.

prob not justified, but the super prob won't let the movers in unless you pay.

There really isn't a market rate for co-op charges---it varies by managing agent. A co-op pays a fee to the agent for day-to-day management of the bldg., which doesn't (most likely) cover transfer of the shares and the time the agent spends at the closing. An unrefundable move-in charge supposedly covers the super's time for over-seeing the move-in. The fees range from reasonable to well, whatever.

I should have mentioned that I am buying a sponsor unit and there is no transfer (flip) tax that I have to pay as buyer.

an_11218, I believe the rate you quote is the NYC transfer tax. I am being charged $1500 transfer agent fee, which is not close 1% of the purchase price.

Sounds like the move-in fee is just a fee charged by a greedy co-op (rather, my greedy co-op)as there is no service entrance/elevator and I will be shocked to see the super do anything short of stand there and watch.

Thank you all for your input, Ive been reading the blogs throughout this process but this is my first time posting and because of your participation, its a valuable resource.

Move-in days is a good day to tip the porters and superintendent that oversee your move. Grease their palms early, it pays off even though you feel like you taken by the management company, these guys can provide big help in the future.

After you become an owner and see how these fees feed the coop's reserve fund, you may not object to them as much....

A common position is that a move ties up an elevator for at least a substantial part of the day, denying its use to the entire residency and interferring with other building services (e.g., trash pick-up) and thus this justifies the fee for the exclusive use of a coop service. But mostly it's an easy revenue source, a fee that for most of us, is paid infrequently and while we're already writing checks to everyone and their uncle during the purchase/moving process.

1st, when you purchase from a sponsor, you usually end up paying for their attorney as well as transfer agent fees. $1500 sounds like the attorney fee in this case.

Thanks for the input. As NextERA the fees feel outrageous this week but a damn good idea post close.

The move-in/out fees do not do much as there's not much money coming in. They may just make some buyers walk away from a deal because they feel that the nickel and diming will continue forever. I live in a 130 unit building and the most sales that I've seen in one year was 6. If they charge each person $500, this is Brooklyn not Manhattan, you get no real money.... It will not help the building at all in terms of finances.

Oy vey guys.
Transfer fee is what the co-op charges for the paperwork of writing a new prop lease and issuing a new share certificate. It shouldn't be more than $100 or so, but many Co-Op lawyers use it to extort $500 - $1500 for no reason at all

My super found an apartment in my building for me to buy and the owner has agreed to sell it to me off market. (I already own an apt in the building and so I’d been asking the super for info on owners of 2 bedrooms who wanted to sell). I’d like to show my appreciation to him for finding this apartment for me. Assume the apt will sell for $995000. What’s reasonable?

That's a nice gesture! Some sort of closing gift may be appropriate, maybe a gift card of some sort. You should avoid having it resemble a broker fee, as unlicensed individuals cannot receive fees for brokerage services.

This is what the seller is saving: https://www.hauseit.com/closing-cost-estimator-for-seller-nyc/

These are your estimated costs as the buyer: https://www.hauseit.com/closing-cost-calculator-for-buyer-nyc/

It really should be the seller who's appreciative :-)