DE Buyer's Guide

B U YE R ’ S G UI DE TO PURCHASING A HOME IN LONG ISLAND & QUEENS

W ELCO ME HO ME Long Island is a very special place to live, work and play. Our close proximity to New York City; the greatest city in the world with its award winning school districts and universities, renowned hospitals, cultural centers, sports and entertainment arenas, sailing/boating, international golf courses, world class restaurants, vineyards, and miles of beaches and parks – attract the most influential thought leaders, residents, and visitors. Everything you love and need can be found right here on Long Island. With the help of this guide, you’ll learn the nuances that make Long Island’s real estate process so unique and gain an edge in the market. When you’re ready to take the next step, our top-performing agents will be here to help you determine which neighborhood offers the character and amenities you desire, which type of property suits you best and how to negotiate the best deal. All the resources and influence we’ve gained as the #1 brokerage on Long Island will empower your real estate buying experience.

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The Basics - Relocating to Long Island & Queens Getting Started Buying & Selling Process Purchasing Journey Real Estate Terms Condos & Co-Ops Townhouses Single Family Homes Closing Costs Condominium Apartments

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Closing Costs Co-operative Apartments Closing Costs Single-Family & Townhouse NY State Mansion Tax & Peconic Tax Douglas Elliman Offices on Long Island

FAIR HOUSING

Douglas Elliman Real Estate treats everyone fairly and equally in full compliance with local, state, and federal laws on fair housing and discrimination. These laws require that the sale and rental of housing is undertaken without reference to an individual’s protected characteristics, including, but not limited to an individual’s race, color, religion, sex, handicap, familial status, national origin, sexual orientation, gender identity or expression, creed, gender, disability, pregnancy, alienage / citizenship, marital status, age, lawful source of income, military status, veteran status, victim of domestic violence, and ethnicity. Our agents are trained to comply with these laws and will protect the rights of all our clients and customers. We pledge to follow the law.

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T HE B A SI C S What You Should Know About Relocating to Long Island or Queens

• When purchasing in New York, a binder

check is sometimes presented with the offer to purchase. You then go to contract within an average of ten days. At contract, the total deposit of the down payment is required.

• It is a good idea to have a minimum down

payment of 20% in order to qualify for a mortgage on a single-family house or condominium. A higher down payment may be required if financing a co‑op.

• We recommend that all home buyers have an engineer’s inspection before purchasing.

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• A paid-in-full homeowner’s policy must be

presented at closing. We will be happy to assist you in obtaining one.

• Some water companies on Long Island and Queens require that they see a copy of the contract on your new home before setting up service.

• At closing, all funds must be in cash or certified checks.

can apply for a VA Exemption on • Veterans

their property taxes.

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GETTI N G STA RT ED

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C LEAN UP YOUR CREDIT

Banks use credit scores to evaluate the risk of lending to individuals. If you know you’ll need to borrow money from a bank to finance your home, learn your credit score as soon as possible and work to boost it as needed. Websites like Credit Karma will provide your credit details without damaging your score.

P REPARE YOUR SAVINGS

A down payment depends on the type of mortgage a buyer will be applying for. However, typically you will be expected to put down at least 20% of the sale price upfront, plus additional closing costs. Your real estate agent will be able to provide you with a complete breakdown of these associated expenses.

G ET A PRE-QUALIFICATION ESTIMATE

G e tti ng S t a r t ed

This can easily be done over the phone with your bank or mortgage professional. A loan officer will ask you about your income, assets, debts and projected down payment. They will then determine the amount you’ll most likely qualify for based on the information you’ve provided.

COMPLETE LOAN PRE-APPROVAL After pre-qualification, you’ll want to work with a lending institution to receive a written “good-faith” estimate of the amount you’ll be able to borrow. This step requires an in-person appointment and a possible fee. You’ll be expected to submit more information, such as pay stubs, bank statements, tax returns and other financial documents. Once you receive your pre-approved loan statement, it is normally valid for 60 days.

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BUYING & SELLING P RO C E SS Here is an explanation of the average buyer process. Okay, you’ve found your Dream House and you want to buy it. What do you do now? The following is a basic step-by-step guide of the process.

Keep in mind that every home purchase is different so use this only as an idea of what to do, and not as a definitive guide.

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Buying & S e l l i n g Pro ce s s

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First thing you should do is to obtain a pre-approval from the lender from whom you are going to secure your home loan.

This is important since before the seller will entertain your offer, he or she will want to know that you have the financial capability to purchase their home.

It is recommended that you work with a buyer’s agent as you search for your new home. A buyer’s agent is legally bound to represent the buyer’s needs, and acts as your fiduciary. A buyer’s agent is required to follow your instructions, within the guidelines of all Federal, State and Local laws, including all Federal, State and Local Fair Housing Laws. A buyer’s agent’s most notable representation, will be in negotiating your purchase as to price, terms and conditions in line with your instructions. All shared information will be held in the strictest confidence and any information about the property that would affect your buying decision will be disclosed to you including verified faults or defects of the property. Before your decision to make an offer, they are free to provide you with any and all the necessary information on recent home sales in the neighborhood, including price “comparables” and pricing trends at your request.

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Next, your agent will present your offer to the homeowner and negotiate the price through the seller’s agent.

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After a price is agreed upon, your next step is to hire a home inspector or engineer to look at the house. You should have this done within the next two or three days. This is not a re-negotiation tool, but simply for you to learn as much about the house as possible before you sign the contract.

You might decide not to buy the house after the inspection.

Keep in mind that even new houses have some flaws and when you are buying a resale, there will be things that have to be done in the future. The inspection is so that you will know what you might expect within the next few years.

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After completion of the inspection, the seller’s attorney draws up a purchase contract and delivers it to your attorney. Usually, both attorneys are in communication before the contracts go out so there is little changing to do, but sometimes changes are necessary.

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You meet with your attorney, sign the contracts (4 copies) and deliver your escrow check for the deposit. Typically the check is for 10-20% of the agreed upon purchase price.

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The sellers meet with their attorney and sign the contract. The check is deposited into the seller’s attorney’s escrow account to be dispersed to the seller after the final closing.

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Copies of the signed contract are sent back to the buyer’s attorney. After receiving the signed contracts back, the buyer is officially “in full contract.” Everything after this point is just to make it happen.

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At this point the buyers attorney will order the title search. The attorney can’t do this until there are signed contracts.

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Also, a copy of the signed contract will be submitted to the lender and the process of qualifying the loan will begin.

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The lender will require a termite inspection, unless the home inspector is certified for termite inspection. Some are. If there is an infestation, the seller has the option to correct the problem or cancel the deal.

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The lender will also send an appraiser to the house to do a physical inspection and make sure the amount they are lending the buyer is covered by the value of the house.

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After the title search is approved, loan application is approved and any other contingencies are met (remember, all home purchases are different, this is just a guide) a date for the closing, which is convenient for all attendees, is set.

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Buyers schedule a walk-through of their purchase, as close to the closing date as possible. The best time would be the day before if it is a morning closing so that you have the time to carefully check all equipment in the house, including windows, plumbing, washer and dryer if included in the original contract, etc., to make sure everything is in working order.

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At the closing, you sign all the necessary papers, and the house is yours. CONGRATULATIONS!

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PUR C H A S I N G JO U RN E Y The purchase process can move, as long as a loan can be secured in a timely fashion. In such instances, a sale can move from contract to closing in about 60 days. However, the co-op process is more involved and often takes longer — 60 to 90 days, or longer, is not unusual.

KEY MOMENTS IN YOUR JOURNEY

1 PRE-APPROVAL 2 PROPERTY SEARCH 3 OFFER NEGOTIATION: Once you’re ready to buy,

your agent will communicate your offer to either the seller’s agent or to the seller directly. The seller may counter your offer, which opens a negotiation process that will eventually lead to a meeting where price, terms and closing date will be agreed upon.

4 CONTRACT REVIEW: Your attorney should examine

the contract of sale and by-laws and financial condition of the building to conclude it’s satisfactory before allowing you to sign the contract.

5 SIGN CONTRACT: At this time, you will usually

be required to present a deposit. The contract, plus the deposit, will then be forwarded to the seller for a signature. This money will be held in the seller’s attorney’s escrow account until closing. It is important to note that until all parties have signed the contract and it has been delivered, the seller can still entertain and accept other offers.

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6 LOAN APPLICATION: If financing, you should move forward with your loan application and schedule an appraisal with your financial institution.

7 COMPLETE APPLICATION: (If purchasing a condo or co-op) You will receive these requirements and materials from your agent, which typically include: an application, a financial statement signed by the purchaser or a CPA, all requisite support for your financial statement, two to three years of tax returns, bank statements, letters of personal and financial reference, letters of professional reference, the contract of sale and bank documents (if financing) indicating that your loan is in place. Your Douglas Elliman agent will assist you in this process. In the case of a co-op, if your application meets initial approval, you will be invited to be interviewed by the board or an interviewing committee.

8 BOARD APPROVAL

(If purchasing a condo or co-op)

9 BANK SUPPLIES CLEARANCE TO CLOSE 10 CLOSING SCHEDULED 11 FINAL WALK-THROUGH AND CLOSING Pu rcha s i n g J o u rn e y

R EA L E STAT E T ER MS Nearly everyone, at some point in life, will have the opportunity of buying and selling real estate. The purchase of a home is probably the largest single investment a person will ever undertake and careful consideration should be given to the technical issues involved in the transfer of real estate before any action is taken. Whether you are a seller or a buyer, you should understand the contract terms and how they affect you.

AGENCY A legal relationship in which an owner-principal engages a broker-agent in the sale of a property or a buyerprincipal engages a broker-agent in the purchase of a property.

AGENCY RELATIONSHIP Agreement between an agent and a client in which the agent acts in the client’s best interest in a real estate transaction.

APPRAISAL Process of determining a property’s market value.

ARM (ADJUSTABLE RATE MORTGAGE) A mortgage with an interest rate that changes over time in conjunction with movements in a given index.

ASSESSED VALUE The valuation placed on property by a public tax assessor as the basis of property taxes.

ASSUMPTION OF MORTGAGE An agreement whereby the buyer assumes responsibility for a mortgage owed by the seller. The seller remains liable to the lender unless the lender agrees to release the seller from liability.

BALLOON PAYMENT A lump sum principal payment due at the end of some mortgages or other long-term loans.

BINDER An agreement, accompanied by a deposit, whereby the buyer evidences good faith.

BRIDGE LOAN A short-term loan made until a longer-term loan can be arranged; it is sometimes used when a person

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needs money to build or purchase a home before the present one has been sold.

BROKER A person licensed by a state real estate commission to act independently in conducting a real estate brokerage business.

BROKER AGENT An agent often from another company other than the listing company working with the home buyer but who legally represents the seller.

BUYDOWN Prepaid interest that brings the note rate on the loan down to a lower, permanent rate.

BUYER’S AGENT Acts exclusively on behalf of the buyer.

CAP The maximum amount an interest rate or monthly payment can change, either at adjustment time or over the life of the mortgage.

CLIENT The buyer represented by a Buyer’s Agent or the seller represented by a Seller’s Agent, also called the “principal.”

CLOSING The “closing” of the purchase of your home is the transaction in which you receive all the documents required to convey the title of your property. At the closing these documents are reviewed to be sure that the conditions and promises of the purchase contract are fulfilled. Also at this time, the balance of the purchase price is paid to the seller.

Arrangements are made at the closing for the date when you

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REAL ESTATE TERMS continued will occupy the home. Normally, when the full purchase price is paid, the keys to the house are delivered to the buyer, who then has the right to move in immediately. However, your purchase agreement may also specify a later date. In the long run, it’s likely to be more economical to have professional advice (your attorney’s advice) in making the purchase.

CLOSING COSTS Expenses over and above the price of the property, paid at the closing.

CLOUD ON TITLE A lien or encumbrance that can prevent the seller from delivering clear title and the buyer from obtaining title insurance.

COMMITMENT PERIOD The period during which a loan approval is valid.

COMMON CHARGES Monthly charges paid by condo owners that cover the cost of shared building amenities.

CONTINGENCY A condition that must be met before a contract is binding or that must be satisfied before a mortgage can close.

CONTRACTS A legal agreement between buyer and seller that outlines the terms of purchase or transfer of property.

Once you’ve found the house you would like to buy and have agreed on the price, you will probably be asked to sign a paper and put down a deposit. This paper may be called “purchase offer” or “agreement” and is usually prepared by the seller’s attorney. Any one of these papers may constitute a binding contract requiring you to purchase the house. Before signing it, you should consider seeking legal advice. Remember that once a contract has been signed, your rights and obligations are fixed considering the transaction and your attorney will not have further opportunity to structure the contract to meet your objectives. The other parties to the contract are under no obligation to explain the terms and conditions to you. It is advised that you engage an attorney to represent you in the transaction before you sign any papers. The contract of sale should state the parties, the purchase price, and how it is to be paid, and adequate description of the property being sold, the kind of deed to be delivered, the quality of the seller’s title to the property, a description of personal property included in the sale, the date you are to take possession and other clauses in relation to the property and the parties’ respective 10

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responsibilities to each other. The contract should also permit the buyer to cancel the contract if financing can’t be obtained and provide for the return of payment if the sale falls through.

Perhaps the seller may want to retain possession of the property for some time in order to find new accommodations. If so, appropriate clauses can be included in the contract defining such rights. These are only a few of the matters usually covered in the contract. However, they illustrate the variety of terms and conditions to be considered when you enter into such a transaction.

CONVERSION CLAUSE A provision in some ARMs that enables homebuyers to change an ARM to a fixed rate loan, usually after the first adjustment period. The new fixed rate is generally set at the prevailing rate for fixed rate mortgages.

CO-OP BOARD A group of residents elected to represent all shareholders within a co-op building. The board determines the rules of the building, addresses building issues and reviews new buyer applications.

CUSTOMER A buyer who works with a Seller’s Agent is considered a “customer” rather than a client of the “Seller’s Agent” because they have not entered into an agency relationship. The buyer has no representation.

DEBT RATIOS The comparison of a buyer’s housing costs to his or her gross or net effective income (housing ratio), and the comparison of a buyer’s total long-term debt to his or her gross or net effective income (total debt ratio).

DUE-ON-SALE CLAUSE This clause requires full payment of a mortgage or deed of trust when the secured property changes ownership.

DEED A legal document conveying title to a property.

DISCLOSED DUAL AGENCY Occurs when one brokerage company represents both the buyer and the seller.

EARNEST MONEY A portion of the down payment given to the seller by a potential buyer indicating the buyer’s intent to complete the purchase of the property.

EQUITY LOAN A loan based on the borrower’s equity in their home rather than on their credit worthiness.

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ESCROW the placement of money or documents with a third party for safe-keeping pending the fulfillment of a specified condition.

FINAL WALK-THROUGH A property inspection that takes place prior to closing to ensure the condition of the property is true to what is specified in the contract.

FIXED RATE MORTGAGE A conventional loan with a single interest rate for the life of the loan.

FORM OF DEED In residential transactions there are two generally used forms of deed. The first is called “warranty deed”, which assures the buyer that the title is good against anyone who may claim a superior title. The second commonly used form of deed is the “bargain and sale deed with covenants against grantor’s acts.” This deed assures the buyer that the seller has done nothing to affect the title to the property through his or her own acts. In both instances, if the title is insured by a title insurance company, the buyer will look to the title insurance for protection against claims even though the buyer may make claims against the seller.

GRADUATED PAYMENT MORTGAGE A mortgage that starts with low monthly payments and increases at a predetermined rate.

INSPECTION REPORT is the result of a visual inspection of the premises. It is not a guarantee or a form of insurance.

The inspection cannot include the inspection of framing or piping that is behind walls. It is recommended that the buyer ask questions during this inspection regarding present plans, concerns and future plans for modifications. At the end of the inspection, the inspector will summarize the building condition for the buyer. A complete report will normally be typed and sent out to the buyer within five working days following the inspection.

GROWING EQUITY MORTGAGE A mortgage loan in which the monthly payments increases by a specific amount each year, with the “overpayment” applied to the principal.

JOINT TENANCY An equal undivided ownership of property by two or more persons. Upon death of any owner, the survivor takes the decedent’s interest in the property.

IN CONTRACT An offer has been made and accepted on a property. The buyer has paid a deposit and both seller and buyer have signed the offer. The listing is no longer available on the market unless the deal falls through.

LIEN A legal claim against a property that must be paid when the property is sold.

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REAL ESTATE TERMS continued

LISTING AGENT Person acting on behalf of the seller; the agent who “lists” the home for sale, also called the “Seller’s Agent.”

MARGIN The number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment.

LOAN COMMITMENT A written promise to make a loan for a specified amount on specified terms.

MARKET VALUE The highest price a buyer will pay for a property and the lowest price the seller will accept.

LOAN-TO-VALUE RATIO The relationship between the amount of a home loan and the total value of the property.

MORTGAGE Loan that a bank or lender gives you to buy a house. A mortgage payment is made up of principal, interest, taxes and insurance.

LOCK-IN RATE A commitment made by the lenders on a mortgage loan to “lock-in” a certain rate pending loan approval.

Lock-in rates vary.

MAINTENANCE FEE Monthly charges paid by co-op owners to cover operating expenses of the building, including taxes, insurance, etc.

MORTGAGE BROKER An individual or company that obtains mortgages for others by finding a lending institution, insurance company, or private sources to lend the money; may also handle collections and disbursements.

MORTGAGE INSURANCE A policy that provided protection for the lender in case of default and guarantees repayment of the loan if the borrower becomes disabled or dies.

NEGATIVE AMORTIZATION An increase in the outstanding balance of a loan resulting from the failure of periodic debt service payments to cover required interest charged on the loan.

ORIGINATION FEE A fee or charge for work involved in evaluating, preparing and submitting a proposed mortgage loan. The fee is limited to one percent for FHA and VA loans.

PAYMENT CAP The maximum amount the payment can adjust within a given time period.

PITI Principal, Interest, Taxes and Insurance POINTS A dollar amount paid to a lender for making the loan. A point is one percent of the loan amount; also called discount points.

PRE-APPROVED Written statement from your bank or lender confirming that you are approved for a specific loan amount.

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PRE-QUALIFIED An estimate of the loan amount you will likely be pre-approved for.

PRIVATE MORTGAGE INSURANCE (PMI) Insurance issued to a lender to protect it against loss on a defaulted mortgage loan. Its use is usually limited to loan with high loan-to-value ratios. The borrower pays the premiums.

REALTOR AND REALTOR ASSOCIATE Registered collective membership marks that identify real estate professionals who are members of the National Association of Realtors and subscribe to its strict Code of Ethics.

right of way such as for a jointly used driveway. These easements must be recognized by the owner in the use of the property and considered by the buyer who is purchasing the property. There are other ways in which the use of the owner’s property may be limited. One is by restrictions in the deed with another by local zoning laws. Almost all land is subject to real property taxes, which, if not paid, may result in the loss of title. Other debts owed on the property (for example, special assessments or levies) can also cause problems later on. When you buy a home you should be certain that you have the right to occupy it without interference and that you later will be able to sell or mortgage it without problems.

REPRESENTATION Remember one important point- the seller, broker, and bank in the transaction may have an attorney representing each of their interests. An attorney representing any of these parties is not your attorney, even though you may be charged with a fee, as in the case of a bank. It is your own responsibility, as a buyer, to seek the professional advice of an attorney to protect yourself and to be sure that you get precisely what you are legally entitled to receive.

SHARE EQUITY MORTGAGE A home loan in which an investor is granted a share of the equity, there by allowing the investors to participate in the proceeds from resale.

TENANCY IN COMMON A type of joint ownership of property by two or more persons with no right of survivorship. It is said to be an undivided one-half ownership in the property by each tenant in common.

TITLE The “title” to real estate is the right of the owner to its peaceful possession and use free from the claims of others. Often, however, the exercise of that right is limited by the existence of other rights which are called easements.

To obtain electricity, sewers, telephone, etc., an owner gives the municipality or public utility the right to run its lines or pipes across his or her property to the house. Other common easements provide for drainage of surface water, or access

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TITLE INSURANCE Protection for lenders and homeowners against financial loss resulting from defects of title.

TITLE SEARCHES After the contract has been signed, you should satisfy yourself that the seller can convey a “marketable” title of the property to you as agreed upon in the contract of sale. In different areas of the state, varying methods are used to make sure that the title received from the seller is marketable. In some areas, your lawyer will make his or her own examination of the records and issue a certification indicating the finding. In other areas, your lawyer may supply you with a written title opinion based on an abstract of title (which is a simple title history) prepared by a commercial abstract company. Still, in other areas, your attorney may take out a title insurance policy. A combination of any of these methods may also be used. A word about title insurance, while it may give you protection against financial loss and the possible expense of defending your title, in court it does not lessen the importance of your lawyer’s advice. Your lawyer can advise you how to obtain title insurance and also on the terms, exceptions, and conditions of a title insurance policy.

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CON D O S & CO - O P S

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COOPERATIVE BUILDINGS

CONDOMINIUM BUILDINGS

Co-op buildings are more common in New York City, Queens, & Brooklyn than in other parts of New York.

However, there are some co-ops on Long Island. Individual tenants do not “own” their apartments as they would in the case of “real” property. Rather, co-ops are owned by an apartment corporation and individual unit owners are “shareholders,” which entitles them to a long-term proprietary lease. Co-ops are traditionally stricter when approving a buyer whose funds are not in the United States.

A form of homeownership that combines individual ownership of one’s unit with shared ownership of common facilities. Each owner has a separate mortgage for their specific unit and is individually responsible for making the payments on it and for the real estate taxes. An owner will also pay common charges on a monthly basis. Common charges are similar to maintenance in a cooperative. An elected board of directors is responsible for the operation and management of all common facilities.

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C o n d o s & C o - o ps

CONDO

CO-OP

COST

Generally, more expensive.

Generally, more attractive.

APPROVAL PROCESS

No interviews are required.

Application is not as rigorous as the co-op board process.

The board interviews all prospective owners, and has the right to approve or reject any applicant.

FINANCING

Be prepared to put down at least 10% of the purchase price, plus closing costs.

Be prepared to put down at least 20% of the purchase price, plus closing costs.

MONTHLY FEES

Common charges (services and amenities shared by condo residents) and property taxes.

Maintenance fees based on the number of shares the tenant owns (typically dictated by apartment size and floor level).

TAX BENEFITS

Real estate taxes are deductible, but common charges are not.

Shareholders can deduct their portion of the building’s real estate taxes and their proportionate share of the interest on the building’s mortgage.

SUBLETTING

Typically permitted.

Must be approved by Board of Directors.

SELLING

Can be sold at will.

Board will need to approve the new buyer.

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TO WN H O U S E S TOWNHOUSE Defined as a multi-story urban home, usually attached, that’s built close to the street and scaled similarly to the buildings surrounding it. Often times, they are multi-unit homes. They are sometimes renovated into a single unit or can be used as rental units for additional income. A Brownstone is a type of townhome, recognizable by the reddish-brown sandstone of its façade.

When you purchase a townhouse, you own both the structure itself and the land. It has its own roof and may have a garage or private yard included. You’ll most likely have more freedom and flexibility with how you treat your

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property, particularly regarding renovations, subleases or additions. However, it’s important to research the zoning laws for these same reasons.

While you won’t pay monthly common charges or maintenance fees as you would for condos and co-ops, you are 100% responsible for all repairs and general upkeep.

Only about 2% of available residential properties in New York are townhomes, which creates a competitive market.

Working with a knowledgeable agent will give you an advantage over other buyers.

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SIN GLE FAMILY H OM ES CAPE

COLONIAL:

CONTEMPORARY:

HIGH RANCH:

RANCH:

SPLIT LEVEL:

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A very loose term, used to describe “wide line” (flat across the front), “A-line” (literally shaped like the letter when viewed from the front), or side hall housing style (with stairs right in front as you enter), which includes living room, dining room, kitchen, bathroom, and two bedrooms on the first floor.

Two or more bedrooms and a bathroom are on the second floor.

Typically, this house has two levels and an attic. Most have a center hall entry with a staircase on the right, living room on the left, a dining room behind the living room, and the kitchen next to the dining room, also in the rear. Often, there is a family room on the other side of the kitchen, as well. The second floor has three or more bedrooms off a center hall, and one or more bathrooms.

Characterized by their unique, spacious, “one-of-a-kind” designs that often feature “great rooms” with skylights, atriums, etc., these houses are dramatic expressions of the architect or the owner’s personal vision.

Typically, this house has an entry of five or six steps leading into a foyer, with steps going up and down from there. Those going up usually lead to a living room and an “L”-shaped dining room, adjoining kitchen, three or more bedrooms, and one or more bathrooms. The steps down lead to a den, an additional bedroom, utility room and a garage entrance.

Its main characteristic is that all living space is on one level. Entry is directly into the living room, with a separate or wraparound “L”-shaped dining room to the rear. The kitchen sits alongside the dining room, also to the rear. A hallway entered from either the living room or the kitchen leads to the other side of the house where three or more bedrooms are located, as well as one or more bathrooms.

Usually, there are three or more levels, with three or four steps up or down to each level. The split can be side-to-side or front-to-back, but each level always sits over another living area, or a garage. Entry is usually up to three steps into a hallway or foyer, with the living room to the right or left. In back of that is the dining room and adjoining kitchen. The steps lead to a hallway, of which there are three or more bedrooms and one or more bathrooms.

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CLOSING COSTS TYPICAL ESTIMATED CLOSING COSTS: CONDOMINIUM APARTMENTS FOR THE PURCHASER Buyer’s Attorney

Consult your attorney

Bank Fees

$750–$1,000 (Underwriting and Document Preparation)

Application Fee

$350+

Processing Fee

$330–$500

Appraisal Fee

$500–$2,000 (Depends on purchase price and other factors)

Credit Report Fee

$45–100+

Bank Attorney

$750–$1,000

Tax Escrow

2–6 months

Recording Fees Nassau

Appr. $1,200-$1,700 Deed Fee - $200 verification fee + $355 per block Verification Fee - $355 per instrument, per block Deed Fee - $200 per lot per document Verification Fee - $200 per instrument, per lot Mortgage Fee - $300 per mortgage or mortgage type document

Suffolk

Your mortgage lender can give you a better idea once you have found a house that interests you. But until you find that dream house, use this as a guide. Keep in mind that all amounts are estimates. We hope it helps!

MORTGAGE TAX PROPERTY TYPE

MORTGAGE TAX Nassau, Suffolk, Dutchess and Orange Counties

Residential Condo Unit up to $499,999.99 Residential Condo Unit $500,000 and up Commercial Condo Unit up to $499,999.99

1.05%1

Commercial Condo Unit $500,000.00 and up

Recording Fees Fee Title Insurance

Variable by transaction.

Approximately $400 per $100,000

Mortgage Title Insurance

Variable by transaction Approximately $200 per $100,000

Municipal Searches

$350–500

Flip Tax

Varies building to building, consult your agent

ADDITIONAL EXPENSES Maintenance Adjustment

Pro-rates for the month closing

Short-term interest

Equal interest for the balance of month in which you close

* Mansion Tax is paid by purchaser on transactions that are 100% residential and the purchase price is $1M or above.

Endorsements Municipal Search NY State Transfer Tax

We get asked many times about closing costs, specifically, “How much do I need to allocate for closing costs?”

Although there is no exact answer to that question since many things affect the total, there are guidelines that can give you an idea about how much to put aside for this.

1

Minus $30 for 1-2 family

Paid by seller except if sponsor sale Four family residence requires mortgage to be calculated at the commercial rate

2

Pre-Paid Expenses:

18

Insurance Escrow

Two months

Adjustments

Real Estate Taxes to be adjusted at closing at the pro-rata share for each party

Pre Paid Interest

Maximum of 30 days

Real Estate Taxes

To be adjusted at closing at a pro-rated share of each party

Do ugl a s E l l i m a n Rea l Es t at e B uy e r ’ s Gui d e

This closing-cost guide is designed to give you the general costs associated with the purchase or sale of a condominium property.

Please note that these are estimates and that potential buyers should consult their real estate attorney, financial advisor or mortgage lender for specifics. Kindly note, we do not represent that these are the entirety of potential costs, but are only to be used as a guide.

All transfer and filing fees are subject to change by government agencies in each location.

C l o s i n g C o s ts

CLOSING COSTS TYPICAL ESTIMATED CLOSING COSTS: CO-OPERATIVE APARTMENTS

FOR THE PURCHASER

ADDITIONAL EXPENSES

Buyer’s Attorney

Consult your attorney

Miscellaneous Co-op Charges

Varies by building

Bank Fees

$550–$1,000

Recognition Agreement Fee

Approximately $250

Application Fee

$350–$650

Flip Tax

Please check with building

Processing Fee

$330–$500

Maintenance Adjustment

Pro-rates for the month closing

Appraisal Fee

$500–$2,000

Short-term Interest

Credit Report Fee

$45–100+

Equal interest for the balance of month in which you close

Bank Attorney

$650–$750

Lien Search

$350–$450

UCC-1 Filing Fee

$20 - $40 in all counties except for Nassau

UCC-1 Filing Fee (Nassau)

$340 ($40 to file + $300 per block)

*Mansion Tax is paid by purchaser on transactions that are 100% residential and the purchase price is $1M or above.

This closing-cost guide is designed to give you the general costs associated with the purchase or sale of a condominium property. Please note that these are estimates and that potential buyers should consult their real estate attorney, financial advisor or mortgage lender for specifics. Kindly note, we do not represent that these are the entirety of potential costs, but are only to be used as a guide.

All transfer and filing fees are subject to change by government agencies in each location.

Cl osi ng C o s t s

D ouglas Elliman Real Estate Bu ye r ’ s G u i d e

19

CLOSING COSTS TYPICAL ESTIMATED CLOSING COSTS: SINGLE-FAMILY HOMES & TOWNHOUSE FOR THE PURCHASER Buyer’s Attorney

Consult your attorney

Bank Fees

$750+

Application Fee

$350+

Processing Fee

$330+

Appraisal Fee

$500–$2,000

Credit Report Fee

$45–100+

Bank Attorney

$750–$1,000

Tax Escrow

2–6 months

Mortgage Recording Fees Nassau

Approximately $1,200–$1,700 Deed Fee - $200 verification fee + $355 per block Verification Fee - $355 per instrument, per block

Suffolk

Deed Fee - $200 per lot per document Verification Fee - $200 per instrument, per lot Mortgage Fee - $300 per mortgage or mortgage type document

Recording Fees - NYC and Westchester

$250–$750

Fee Title Insurance

Variable by transaction

Mortgage Title Insurance

Variable by transaction

MORTGAGE TAX

MORTGAGE TAX New York City

Single Family Residence $499,999.99 and below

2.05% (0.25% paid by lender; 1.8% by mortgagor)1 2

Single Family Residence at $500,000 and up

2.175% (0.25% paid by lender; 1.925% by mortgagor)1 2

Commercial Properties and Vacant Land $500,000.00 and under

2.05%

Commercial Properties and Vacant Land $500,000.01 and up

2.80%

Minus $30 for 1-2 family Four family residence requires mortgage to be calculated at the commercial rate

2

20

Do ugl a s E l l i m a n Rea l Es t at e B uy e r ’ s Gui d e

MORTGAGE TAX Yonkers

1.05%1

1.8%1

2

* Mansion Tax is paid by purchaser on transactions that are 100% residential and the purchase price is $1M or above.

1

MORTGAGE TAX Nassau, Suffolk, Dutchess and Orange Counties

This closing-cost guide is designed to give you the general costs associated with the purchase or sale of a condominium property. Please note that these are estimates and that potential buyers should consult their real estate attorney, financial advisor or mortgage lender for specifics. Kindly note, we do not represent that these are the entirety of potential costs, but are only to be used as a guide. All transfer and filing fees are subject to change by government agencies in each location.

C l o s i n g C o s ts

NEW YORK STATE MANSION TAX PROPERTY PRICE

MANSION TAX RATE

$1,000,000 - $1,999,999

1.00%

$2,000,000 - $2,999,999

1.25%

$3,000,000 - $4,999,999

1.50%

$5,000,000 - $9,999,999

2.25%

$10,000,000 - $14,999,999

3.25%

$15,000,000 - $19,999,999

3.50%

$20,000,000 - $24,999,999

3.75%

$25,000,000 or more

3.90%

Mansion Tax (1% of purchase price) is paid by the purchaser on transactions that are 100% residential and the purchase price is $1M or more. In the five boroughs of New York City, the rate increases based on the sales price as follows:

PECONIC TAX SINGLE FAMILY & TOWNHOUSE

South Fork

North Fork

A. Improved land: 2% of purchase price less $250,000 B. Unimproved land: 2% of purchase price less $100,000 A. Improved land: 2% of purchase price less $150,000 B. Unimproved land: 2% of purchase price less $75,000

The Peconic Tax only applies to the towns of Southampton, East Hampton, Riverhead, Southold and Shelter Island.

I f you are a first time home buyer contact Southhampton, East Hampton or Shelter Island to see if you qualify for a Peconic Regional Tax Exemption.

CONDOMINIUM APARTMENTS

A. Exclusions

B. Residential

- Purchase price les than $250k on improved property - Purchase price les than $100k on unimproved property - 1-3 family dwelling less than $1m and all other properties = 2.4% - 1-3 family dwelling $1m+ = 3.4%

M a nsi o n Ta x & Pec o n i c Tax

D ouglas Elliman Real Estate Bu ye r ’ s G u i d e

21

WE KN OW LONG ISLAND BE TT ER THA N ANYONE Since 1911, Douglas Elliman Real Estate has consistently connected clients to the most exceptional properties. With offices throughout Nassau, Suffolk, Queens, The Hamptons & North Fork you’ll find knowledgeable brokers, incomparable service and local expertise.

QUEENS Bayside 36-29 Bell Blvd., 3rd Floor Bayside, NY 11361 718.631.8900 Long Island City 47-37 Vernon Blvd Long Island City, NY 11101 917.386.6164

NASSAU

Locust Valley 71 Forest Avenue Locust Valley, NY 11560 516.759.0400 Long Beach 30A West Park Avenue Long Beach, NY 11561 516.432.3400 Manhasset 154 Plandome Road Manhasset, NY 11030 516.627.2800

QUE E N S 2 offices Roslyn 1528 Old Northern Blvd Roslyn, NY 11576 516.621.3555 Rockville Centre 304 Merrick Road Rockville Centre, NY 11570 516.669.3700

Central Suffolk 2410 North Ocean Avenue Suites 101 & 201 Farmingville, NY 11738 631.758.2552 | 631.585.8500

Central Nassau 998A Old Country Road Plainview, NY 11803 516.681.2600

Massapequa 5066 Sunrise Highway Massapequa Park, NY 11762 516.795.3456

East Norwich 6326 Northern Boulevard East Norwich, NY 11732 516.624.9000

Massapequa South 4804 Merrick Road Massapequa, NY 11758 516.798.1353

Franklin Square 390 Franklin Avenue Franklin Square, NY 11010 516.354.6500

Merrick 2300 Merrick Road Merrick, NY 11566 516.623.4500

Garden City 130 Seventh Street Garden City, NY 11530 516.307.9406

New Hyde Park 1700 Lakeville Road New Hyde Park, NY 11040 516.746.0440

Babylon 124 West Main Street Babylon, NY 11702 631.422.7510

Huntington 164 East Main Street Huntington, NY 11743 631.549.4400

Great Neck 11 Bond Street Great Neck, NY 11021 516.466.2100

Port Washington 475 Port Washington Blvd Port Washington, NY 11050 516.883.5200

Cherry Grove Ocean/Bayview Walks Fire Island, NY 11782 631.597.3100

Huntington Station 110 Walt Whitman Rd, Suite 106 Huntington Station, NY 11746 631.549.7401

Sea Cliff 263 Sea Cliff Avenue Sea Cliff, NY 11579 516.669.3600 Syosset 317 Jackson Avenue Syosset, NY 11791 516.921.2262

SUFFOLK

Dix Hills 1772 East Jericho Turnpike Huntington, NY 11743 631.499.9191 East Islip 100 West Main Street East Islip, NY 11730 631.581.8855 East Setauket 300 Main Street East Setauket, NY 11733 631.751.6000 | 631.474.4242

T HE NOR T H F O RK 3 offices LO NG I SL A ND SO U ND

A TL A NTI C OCEAN

TH E H AMP T ON S 9 offices

SUFFOLK 12 offices NASSAU 17 offices

Northport 700 Fort Salonga Road Northport, NY 11768 631.261.6800 Ocean Beach 937 Bayview Walk Ocean Beach, NY 11770 631.583.0010 Sayville 150 Main Street Sayville, NY 11782 631.589.8500 Smithtown 996 West Jericho Turnpike Smithtown, NY 11787 631.543.9400

THE HAMPTONS Bridgehampton 2488 Main Street Bridgehampton, NY 11932 631.537.5900

East Hampton 20 Main Street East Hampton, NY 11937 631.329.9400 Hampton Bays 14 West Montauk Highway Hampton Bays, NY 11946 631.723.2721 Montauk 752 Montauk Highway Montauk, NY 11954 631.668.6565

Southampton 70 Jobs Lane Southampton, NY 11968 631.283.4343

N AT I O N A L REACH

Westhampton Beach 104 Main Street Westhampton Beach, NY 11978 631.288.6244

Manhattan (1911)

13 MARKE TS OV ER 120 O FFI CE S Long Island (1989) The Hamptons (1989) The North Fork (1989) Queens (1989) Brooklyn (2005)

THE NORTH FORK

Florida (2011)

Quogue 134 Jessup Avenue Quogue, NY 11959 631.653.6700

Cutchogue 28200 Main Road Cutchogue, NY 11935 631.298.8000

California (2013)

Sag Harbor 138 Main Street Sag Harbor, NY 11963 631.725.0200

Greenport 124 Front Street Greenport, NY 11944 631.477.2220

Texas (2019)

Sagaponack 2987 Montauk Highway Sagaponack, NY 11962 631.537.0600

Mattituck 10200 Main Road Mattituck, NY 11952 631.298.8000

Westchester (2012) Colorado (2014) Connecticut (2015) Massachusetts (2018)

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elliman.com/longisland 110 WALT WHITMAN ROAD, HUNTINGTON STATION, NY 11746. 631.549.7401 © 2020 DOUGLAS ELLIMAN REAL ESTATE. ALL MATERIAL PRESENTED HEREIN IS INTENDED FOR INFORMATION PURPOSES ONLY. WHILE, THIS INFORMATION IS BELIEVED TO BE CORRECT, IT IS REPRESENTED SUBJECT TO ERRORS, OMISSIONS, CHANGES OR WITHDRAWAL WITHOUT NOTICE. EQUAL HOUSING OPPORTUNITY.