Every other week, we’ll highlight a deal to show you what title insurance costs, as well as what happens behind the scenes to streamline the closing process.
As Warren Buffet advised, “Be fearful when others are greedy, and be greedy only when others are fearful.” With reports indicating that 300,000 people have left the city and prices falling, is now the time to buy in Manhattan? My good friend at Modern Agent says the answer is “yes.” This period is unique as there are values to be had (in Manhattan!), and generally, by the time everyone knows it, it’s already too late. For example, this Manhattan townhouse originally listed for $32 million and sold for $26 million.
Purchase of a townhome in Manhattan for $26 million with a $16 million mortgage:
New York County
Fee Policy $77,071
Loan Policy: $12,695
Title Fees: $750+
NYS Transfer Tax: $169,000
NYC Transfer Tax: $370,500
NYS Mansion Tax: $1,014,000
County Recording Fees: $500+
Title Grade: A-
The lender was an out-of-state bank, represented by an out-of-state attorney. The situation created some challenges because neither the lender nor the attorney understood local state and city procedures and rules. Every jurisdiction is different. In this case, they were not aware of state-specific procedures to save the purchaser money on mortgage recording tax. This can be substantial with a $16 million mortgage.
Luckily, we were able to guide the lender and attorney through the steps that saved the buyer over $300,000.
If you have any questions about surveys or title insurance, or if you would like to discuss an upcoming or potential transaction, please contact us.