Buying a luxury home in SoHo or a waterfront condo in South Florida comes with more than the purchase price. Closing costs can shift your bottom line by six figures if you are not prepared. If you are moving between markets, the customs, taxes, and closing workflows can feel very different.
This guide explains what you pay, who typically pays it, and how to plan a clean, timely closing in both NYC and South Florida. You will see the key differences by property type and a step‑by‑step checklist designed for NYC buyers who want to purchase in Florida. Let’s dive in.
Luxury closing cost basics
Most luxury purchases in both markets include some blend of these costs:
- Transfer and recording taxes on deeds, stock transfers (for co‑ops), and mortgages.
- Title insurance for owner and lender, plus title searches and recording/clerk fees.
- Lender costs such as origination, appraisal, underwriting, and third‑party verifications.
- Attorney, escrow, and closing agent fees.
- Inspections and surveys, including engineering or specialist reports where needed.
- HOA, condo, or co‑op charges such as estoppel, transfer or processing fees, move‑in deposits, and reserve contributions.
- Prorations for property taxes, utilities, and association dues.
- Insurance premiums, including homeowner, windstorm, and flood when required.
In luxury transactions, expect deeper due diligence and higher insurance scrutiny, especially for historic townhouses, co‑op buildings, and coastal properties.
NYC: key costs and customs
NYC closing flows depend heavily on property type.
- Condos and 1–3 family homes: deed transfers, title insurance is common for buyers, and both state and city transfer taxes apply. Buyers should also account for the state “mansion tax” on higher‑price purchases. Verify current thresholds and rates with New York State and NYC finance agencies.
- Co‑ops: you purchase shares and a proprietary lease rather than a deed, which changes how taxes and title practices work. Board approvals, application fees, and legal review are routine. Some buildings impose a flip tax that may be paid by the seller or buyer, depending on house rules.
- Attorney role: in NYC, attorneys lead contract negotiation, coordinate building documents, and attend closings. This is standard in SoHo, Tribeca, and FiDi.
- Sponsor vs resale: new‑development sponsor closings can have different fee allocations and document requirements than resales.
- Practical checks: older or converted buildings can have Department of Buildings or HPD items to cure, which can impact timing and cost.
Customs vary and are negotiable in the luxury tier. Always confirm allocation of taxes and building fees in your contract.
South Florida: key costs and customs
South Florida closings rely on title companies as closing agents, with attorneys engaged as needed.
- Documentary stamp taxes and intangible taxes: Florida imposes doc stamps on deeds and on mortgages or notes, plus an intangible tax on new mortgages. Amounts and who pays are set by contract and local custom, which can differ by county. Verify current rules with the Florida Department of Revenue.
- Title and escrow: Florida regulates title insurance rates. Title companies typically provide escrow and the settlement statement and coordinate recordings.
- Insurance reality: coastal and luxury towers often require windstorm and may need flood insurance if in a FEMA zone. Insurers can require wind mitigation or roof certifications. Premiums and deductibles affect cash needs at closing.
- HOA and condo: estoppel letters, transfer fees, and move‑in deposits are standard. Large associations may have active litigation, special assessments, or reserve funding requirements that impact your costs.
- Property taxes and homestead: Florida has no state income tax and offers a homestead exemption for qualifying primary residents. If you intend to change domicile, plan the timing and documentation with your tax advisor.
Taxes and recording: compare at a glance
- NYC: state and city transfer taxes typically apply to deeded properties, and a state “mansion tax” can impact luxury buyers. Co‑ops involve different tax treatment than condos. Verify current thresholds and rates with the New York State Department of Taxation and Finance and the NYC Department of Finance.
- South Florida: documentary stamp taxes apply to deeds and mortgages, plus an intangible tax on mortgages. Counties also charge recording fees. Verify current rules with the Florida Department of Revenue and the relevant county recorder.
In both markets, contract language determines who pays which taxes and fees. In luxury deals, those allocations are often negotiated early.
Title, escrow, and attorneys: how closings run
- NYC: buyers and sellers each retain attorneys. For condos and townhouses, buyers commonly purchase owner’s title insurance; lenders require a lender’s policy when financing. Co‑ops do not involve a deed, so title insurance practices differ.
- South Florida: title companies usually handle escrow, title commitment, and settlement. Attorneys are often engaged but are not required for every closing. Title insurance rates are regulated.
Clear early instructions about who selects the title agent, who pays for the owner’s and lender’s policies, and how escrow fees are split will reduce surprises.
Insurance and inspections: coastal realities
- NYC: townhouse or historic property purchases may need engineering and system inspections. High‑rise condos may involve building financial review rather than heavy physical inspections.
- South Florida: coastal properties often require wind mitigation, roof certifications, and may benefit from seawall or shoreline assessments for waterfront homes. Flood zone and elevation certificates influence lender and insurance requirements.
Build time into your contract for these inspections and underwriting reviews.
HOA and association fees you may see
- Estoppel letters to confirm balances and association standing.
- Transfer or processing fees and move‑in deposits.
- Background or application fees in both NYC co‑ops and Florida condos.
- Reserve contributions or working capital at some condo communities.
These items vary by building and governing documents, so review them before you finalize price and concessions.
Who typically pays
Customs vary by property and by deal. Use the following as directional only, then negotiate and confirm in writing.
NYC luxury purchases:
- Transfer taxes: allocation depends on property type and contract; confirm with counsel.
- Mansion tax: typically a buyer cost, subject to state rules and thresholds.
- Title insurance (condos and houses): typically buyer. Co‑ops differ.
- Attorney fees: each party pays their own.
- Co‑op flip tax: paid by seller or buyer depending on building policy and contract.
South Florida luxury purchases:
- Doc stamps on deed: often a seller cost by local custom, but negotiable and county‑specific.
- Doc stamps and intangible tax on mortgages: typically paid by the borrower.
- Title insurance: who pays for owner’s policy varies by county and contract; lender’s policy typically buyer when financing.
- Escrow/closing fees: allocated by contract; often split or tied to who chooses title.
- HOA estoppel and transfer: vary by association; confirm in the contract.
Checklist for NYC-to-Florida buyers
Pre‑offer
- Engage a Florida title/closing company and local counsel with coastal experience.
- Secure pre‑approval from a lender that actively underwrites Florida coastal properties.
- Request preliminary HOA/condo disclosures to scan for assessments, lawsuits, and insurance gaps.
- Ask for an early net sheet that models taxes, title premiums, insurance, and association fees.
Due diligence
- Order inspections immediately: general, wind mitigation, roof, structural, and seawall when applicable.
- Obtain title commitment, survey, and flood zone determination early. Review elevation certificates.
- Confirm rental, pet, and renovation rules if you plan to rent or upgrade the property.
Contract and negotiation
- Spell out who pays documentary stamps, title policies, HOA fees, and recording charges.
- If issues emerge late, consider escrow holdbacks for repairs or building items.
Financing and insurance
- Share inspection results with your insurer for accurate quotes.
- Confirm lender conditions tied to windstorm or flood coverage and reserve levels at the building.
Closing logistics and security
- Verify wiring instructions by phone using known contact numbers. Do not rely on email alone.
- Confirm whether remote notarization and mail‑away signing are available and the timeline for originals.
- Coordinate recording and lien satisfactions with the title company.
Tax and residency planning
- Coordinate with your tax advisor on New York residency tests, Florida homestead timing, and estate planning.
Sample closing timeline
- Days 0–7: contract signed, deposit placed with the Florida title company; inspections scheduled; lender engaged.
- Days 3–21: inspections completed; title commitment and survey delivered; HOA/condo documents reviewed.
- Days 10–30: resolve contingencies; negotiate credits or repairs; finalize insurance and lender underwriting.
- Closing week: complete signing (in person or remote), wire funds with verified instructions, confirm recording and final settlement statement.
48‑hour pre‑closing checks
- Review final settlement statement line by line against your contract.
- Re‑confirm wire instructions by phone with the title company.
- Verify insurance binders and lender conditions are cleared.
- Confirm move‑in scheduling, elevator reservations, and certificate requirements.
If you want precise, property‑specific numbers, ask your team for a custom net sheet for both NYC and Florida scenarios. That will help you compare apples to apples and negotiate with confidence.
Ready to map your cross‑market plan or request a bespoke net sheet? Schedule a Private Consultation with Edward Pitlake for white‑glove guidance across NYC and South Florida.
FAQs
In NYC luxury purchases, who pays transfer taxes?
- Allocation depends on property type and contract. State and city transfer taxes apply to many deeded deals, and the state “mansion tax” can impact buyers. Confirm current rates and responsibilities with your attorney.
How large are closing costs for South Florida luxury condos?
- Costs vary with price, financing, title premiums, doc stamps, insurance, and HOA fees. Ask your title company for a net sheet that models documentary taxes, insurance, and association charges for your building.
Are NYC co‑op closings different from condos?
- Yes. Co‑ops transfer shares and a proprietary lease, require board approvals, and often add application and legal review fees. Title insurance practices differ compared to deeded condo purchases.
What special costs do waterfront properties add in Florida?
- Flood and windstorm insurance, potential seawall or shoreline assessments, and specialist inspections. Lenders may require wind mitigation or roof certifications that affect timing and cost.
Can I close remotely on a Florida purchase while in NYC?
- Often yes. Many title companies support remote notarization or mail‑away closings. Confirm document handling, identity checks, and shipping timelines well in advance.
How do I verify current tax rates for my deal?
- Your attorney or title company should confirm with the New York State and NYC finance agencies for NYC, and with the Florida Department of Revenue and your county recorder for Florida. Always verify before you finalize allocations in the contract.
