Every Line on Your Long Island Closing Statement, Explained Before You Sit Down

Closing costs on Long Island are real, they are significant, and they are routinely misquoted — by lenders, by online calculators, and sometimes by agents who haven't read the contract carefully. This guide breaks down what buyers and sellers actually pay at a Nassau or Suffolk County closing, including the taxes and fees that catch people off guard. I've been handling Long Island real estate closings for more than 35 years, and I put these figures in writing at the contract stage so nothing arrives as a surprise at the table.

What Buyers Pay at a Long Island Closing

Buyer-side closing costs on Long Island typically run between 2% and 5% of the purchase price, depending on financing, property type, and location. Here is what makes up that number:

 

  • Mortgage-related fees: Origination fee, application fee, points (if any), appraisal, credit report, and prepaid interest from closing date to first payment. These are lender-specific and will appear on your Loan Estimate.
  • Title insurance: Two separate policies are required — a lender's policy (mandatory if you are financing) and an owner's policy (strongly recommended). Premiums are set by New York State and calculated on the purchase price. On a $750,000 purchase, expect to budget approximately $3,500–$4,500 combined.
  • Title search and exam fees: Typically $300–$600 on Long Island, covering the search of county records for liens, judgments, and chain-of-title issues.
  • Recording fees: Nassau and Suffolk County charge fees to record the deed and mortgage with the county clerk. These vary by document length but generally run $200–$400 per instrument.
  • Mansion tax: A New York State transfer tax of 1% applies to any residential purchase at $1,000,000 or above — assessed on the entire purchase price, not just the amount over the threshold. Paid by the buyer. See the dedicated section below for NYC tier details.
  • Attorney's fee: My fee for a residential purchase closing on Long Island. Quoted in writing at the contract stage.
  • Prepaid escrows: Homeowners insurance, property taxes, and mortgage insurance (if applicable) collected upfront to fund your escrow account.
  • Survey: Required by most lenders. A standard survey on Long Island runs $600–$1,200 depending on lot size and complexity.
  • Miscellaneous: Bank wire fees, co-op application fees (if applicable), UCC search fees for co-ops, move-in deposits.

 

Co-op purchases carry a different cost profile than houses or condos. There is no deed to record and no title insurance in the traditional sense, but co-op boards often require their own attorney review, and the UCC filing and lien search add fees not present in a standard house purchase.

What Sellers Pay at a Long Island Closing

Seller-side costs are generally higher as a percentage of the sale price than buyers realize going in. Budget 8%–10% of the sale price when you factor in real estate commission, transfer taxes, and attorney fees.

 

  • Real estate commission: Typically 5%–6% of the sale price, split between buyer's and seller's agents. This is usually the largest single line item on the seller's side.
  • New York State transfer tax: $4.00 per $500 of consideration (0.8%), paid by the seller. On a $600,000 sale, that is $4,800.
  • NYC transfer tax (if selling in the five boroughs): For residential properties, 1% on sales under $500,000 and 1.425% on sales at $500,000 or above. For commercial properties, 1.425% under $500,000 and 2.625% at $500,000 or above. Paid by the seller; occasionally negotiated.
  • Mortgage payoff: If you carry a mortgage, the outstanding balance plus any prepayment penalty and per diem interest through the closing date is deducted from your proceeds.
  • Attorney's fee: Quoted in writing at the contract stage.
  • Transfer of title search updates: The title company updates the search between contract and closing; the cost is typically absorbed in the title premium but may appear as a separate line.
  • Co-op flip tax: Many co-op buildings charge a flip tax on resale — commonly 1%–3% of the sale price or a per-share fee. Check your proprietary lease before listing.
  • Move-out deposit refunds and board fees: Co-op-specific; varies by building.

 

Sellers in Nassau and Suffolk are not responsible for the mansion tax — that obligation falls entirely on the buyer.

The Mansion Tax: What It Is and When It Applies

The New York State mansion tax is a 1% buyer-paid transfer tax on any residential purchase at or above $1,000,000. The key detail most buyers miss: the tax applies to the full purchase price, not just the amount over $1,000,000. A $1,050,000 purchase triggers $10,500 in mansion tax — not $500.

 

For purchases within New York City, the mansion tax operates on a tiered schedule with rates that rise as the price increases:

 

  • $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 and above: 3.90%

 

Outside of New York City — including Nassau and Suffolk Counties — only the flat 1% rate applies, regardless of price. There is no tiered structure for Long Island purchases.

 

If your purchase price is near the $1,000,000 threshold, negotiating the price below that number is worth discussing before you sign a contract. I review the mansion tax exposure on every residential transaction at the contract stage, so you know your full tax picture before you are committed.

New York State Transfer Tax and NYC Transfer Tax

The New York State transfer tax is paid by the seller at a rate of $4.00 per $500 of consideration, which works out to 0.8% of the sale price. It applies to all real property transfers statewide, including Nassau and Suffolk County transactions.

 

For residential sales at $3,000,000 or above, an additional New York State transfer tax of 0.25% applies — sometimes called the "mansion tax" on the seller side, though it is technically a separate levy from the buyer's mansion tax. This means a seller on a $3,500,000 residential sale pays 1.05% in combined state transfer taxes.

 

New York City imposes its own transfer tax on top of the state tax for properties located within the five boroughs. Rates for residential properties are 1% on sales under $500,000 and 1.425% on sales at $500,000 or above. Commercial property transfers are taxed at 1.425% under $500,000 and 2.625% at $500,000 or above. The NYC transfer tax is the seller's obligation but is sometimes negotiated as a buyer concession in commercial transactions.

 

Nassau and Suffolk sellers pay only the state transfer tax — there is no county-level transfer tax on Long Island.

Title Insurance on Long Island: What You're Buying and What It Costs

Title insurance protects against defects in the chain of title that a search did not uncover — prior liens, forged documents, errors in public records, or claims by unknown heirs. On Long Island, most lenders require a lender's policy as a condition of the mortgage, and I strongly recommend buyers also purchase an owner's policy.

 

New York title insurance premiums are regulated by the state and are based on the purchase price. They are a one-time premium paid at closing, not an annual fee. The lender's policy is priced on the loan amount; the owner's policy is priced on the purchase price. When purchased simultaneously, there is typically a discount on the simultaneous issue rate.

 

As a rough benchmark for Long Island purchases:

 

  • $500,000 purchase: approximately $2,200–$2,800 combined (owner's + lender's)
  • $750,000 purchase: approximately $3,000–$3,800 combined
  • $1,000,000 purchase: approximately $3,800–$4,800 combined
  • $1,500,000 purchase: approximately $5,200–$6,500 combined

 

These figures reflect standard Long Island title rates and will vary based on the title company selected and any endorsements required by the lender. I work with experienced Long Island title companies and can recommend options based on your transaction.

CEMA Loans: How New York Buyers Can Cut Mortgage Tax

New York State imposes a mortgage recording tax on new mortgages at closing. In Nassau County, the combined state and county rate is 1.05% of the mortgage amount for loans under $500,000 and 1.3% for loans at $500,000 or above. In Suffolk County, the rate is 1.05% for loans under $500,000 and 1.3% for loans at $500,000 or above. These taxes are paid by the buyer.

 

A Consolidation, Extension, and Modification Agreement — known as a CEMA — is a legal mechanism that allows a buyer to assume the seller's existing mortgage and pay mortgage recording tax only on the new money borrowed, rather than on the full new loan amount. On a high-balance purchase, the savings can be substantial.

 

A CEMA requires cooperation from both the seller's lender and the buyer's lender, and not every lender participates. The process adds some complexity and a modest additional fee, but on transactions where the seller carries a large existing mortgage and the buyer is financing a similar amount, the net savings routinely justify the effort. I evaluate CEMA eligibility on every financed purchase and will tell you at the contract stage whether it makes sense for your deal.

Nassau and Suffolk County Recording Norms and Local Differences

Long Island closing costs reflect local recording practices that differ from New York City and from national averages. Understanding these differences helps you read a Good Faith Estimate or Closing Disclosure accurately.

 

Nassau County deeds and mortgages are recorded with the Nassau County Clerk in Mineola. Recording fees are assessed per page and per instrument. Suffolk County uses a similar per-page structure through the Suffolk County Clerk in Riverhead. Both counties require transfer tax returns to be filed at recording, and both have specific requirements for deed preparation that differ from city practice.

 

Property tax adjustments are a meaningful line item on Long Island that buyers sometimes underestimate. Nassau and Suffolk property taxes are paid in installments, and at closing, taxes are adjusted between buyer and seller based on the actual closing date. If the seller has prepaid taxes covering a period after closing, the buyer credits the seller for that portion. If taxes are in arrears, the seller pays. On a high-tax Long Island property, these adjustments can run several thousand dollars in either direction.

 

Star exemptions — New York's School Tax Relief program — require the buyer to re-apply after purchase. Sellers cannot transfer their STAR exemption. I flag this at the contract stage so buyers know to register promptly after closing.

 

For clients purchasing or selling in Great Neck, Garden City, Lake Success, or Lynbrook, I handle the closing locally and am familiar with the specific recording offices, title companies, and municipal requirements that apply in each community.

Common Questions About Long Island Closing Costs

  • How much are closing costs for buyers in Nassau County?

    Buyers in Nassau County typically pay between 2% and 5% of the purchase price in closing costs, excluding the down payment. On a $750,000 purchase with financing, budget approximately $15,000–$25,000, which includes title insurance, mortgage recording tax, recording fees, prepaid escrows, attorney's fees, and survey costs. The mansion tax adds another 1% if the purchase price reaches $1,000,000 or above.

  • Who pays the mansion tax in New York?

    The buyer pays the mansion tax. It applies to any residential purchase at $1,000,000 or above, at a flat 1% rate for Long Island transactions. The tax is assessed on the full purchase price — not just the amount over $1,000,000. In New York City, tiered rates apply for purchases above $2,000,000.

  • What is a CEMA and can it save me money at closing?

    A CEMA is a Consolidation, Extension, and Modification Agreement that allows a buyer to assume the seller's existing mortgage and pay New York's mortgage recording tax only on the new money borrowed. On a financed Long Island purchase where the seller carries a substantial mortgage, the savings can reach several thousand dollars. Not every lender participates, and the process requires coordination between both parties' lenders. I evaluate CEMA eligibility on every financed purchase.

  • What transfer taxes does the seller pay on a Long Island sale?

    Sellers in Nassau and Suffolk County pay the New York State transfer tax at 0.8% of the sale price. For residential sales at $3,000,000 or above, an additional 0.25% state transfer tax applies. There is no county-level transfer tax on Long Island. Sellers in New York City also pay the NYC transfer tax on top of the state tax.

  • How is title insurance priced on Long Island?

    New York title insurance premiums are set by the state and calculated on the purchase price (owner's policy) and loan amount (lender's policy). They are a one-time premium paid at closing. On a $750,000 Long Island purchase with financing, expect to pay approximately $3,000–$3,800 for both policies combined when issued simultaneously. I work with experienced Long Island title companies and can provide a specific estimate at the contract stage.

Know Your Numbers Before You Negotiate the Price

Closing costs are not a footnote — they affect your net proceeds as a seller and your total cash-to-close as a buyer. The time to understand every line is before you sign a contract, not the morning of closing. I provide written cost estimates at the contract stage on every transaction I handle, so you walk into closing knowing exactly what to expect.

 

If you are buying or selling in Nassau County, Suffolk County, or anywhere on Long Island, I am glad to review the numbers with you. I've been handling Long Island real estate closings for more than 35 years, and I represent clients in Great Neck, Garden City, Lake Success, Lynbrook, and communities throughout the North Shore and beyond.

The figures on this page reflect standard Long Island closing costs as of 2025 and are provided for general informational purposes only. Actual costs vary by transaction, lender, title company, and property type. This page does not constitute legal advice and does not create an attorney-client relationship. Attorney advertising. Prior results do not guarantee a similar outcome.