The NYC Home Buying Process, Step by Step: Co-ops, Condos, Houses, Costs and Records

The NYC home buying process does not work the way most national home-buying guides describe. New York City has five boroughs, two different offices that record deeds, a large co-op market with its own approval step, city taxes layered on top of state taxes, and a contract that attorneys negotiate after the offer is accepted. Understanding those pieces before touring leads to cleaner offers and fewer surprises.

This guide follows a purchase from the first lender conversation to the recorded deed. It explains how ownership type changes financing, costs and approvals, which city records to check, and how offers, contracts, board reviews and closings run in New York City.

As a Licensed Associate Real Estate Broker with Keller Williams Realty Liberty, I help buyers in English and Polish. My own practice centers on Queens and Brooklyn, along with Nassau and Suffolk counties on Long Island, and the city-wide rules in this guide are the same ones my Queens and Brooklyn buyers work through. Where you buy is always your decision; my role is to make the process and its trade-offs clear. When you are ready to start an actual search, the New York City home buyer services page explains how we would work together.

New York City at a glance

What are the steps in the NYC home buying process?

The NYC home buying process has nine practical steps: financial preparation, agency paperwork, choosing an ownership type, the search, the offer, inspection and attorney due diligence, the signed contract, financing and approvals, and closing. The order matters, because in New York City the inspection and much of the legal review happen before the contract is signed, not after.

Why the order is different in New York City

In many states, a buyer signs a purchase agreement at the offer stage and inspects afterward under a contingency. New York City practice usually reverses that order: the offer is accepted informally, the buyer inspects and the attorney reviews the paperwork, and only then do both sides sign. Once the contract is signed and the deposit is in escrow, the buyer has limited ways to walk away, so the review comes first.

Step eight varies most: a co-op adds a board review, a condo adds a waiver, and an older house can stall on an open permit or a Certificate of Occupancy that does not match the building’s actual use.

What kinds of homes can you buy in each of the five boroughs?

Every borough offers co-ops, condos and houses, but the mix differs sharply. Manhattan’s for-sale market is mostly apartments, while Staten Island and much of eastern Queens are dominated by houses; Brooklyn, the Bronx and western and central Queens mix row houses, small multi-family homes and apartment buildings.

Manhattan, the Bronx and Staten Island

In Manhattan, a buyer usually chooses between a co-op and a condo rather than between an apartment and a house, so building-level questions, such as the reserve fund, the underlying mortgage, sublet rules and upcoming facade work, often decide whether a purchase makes sense. The Bronx combines co-op buildings and large cooperative developments such as Co-op City, in the northeast Bronx, with streets of attached and semi-detached houses. Large developments have their own purchase and resale procedures, so ask the development’s management for them before you bid. Staten Island has a higher share of detached and semi-detached houses than the other boroughs, follows the same city tax rules, and records deeds with the Richmond County Clerk instead of the City Register.

Brooklyn and Queens

Brooklyn and Queens are where my own practice is focused. Brooklyn’s stock runs from nineteenth-century brownstones to postwar co-op buildings and new condos; the Brooklyn buyer page covers that borough in detail. Queens has detached houses in northeast and southeast Queens, attached brick row houses and two-family homes across western and central Queens, garden-apartment co-ops in northeast Queens, prewar and postwar co-op buildings in areas such as Forest Hills and Jackson Heights, and newer condo towers in Long Island City.

Program co-ops: HDFC and Mitchell-Lama

Some co-ops operate under affordability programs, such as Housing Development Fund Corporation (HDFC) co-ops or Mitchell-Lama developments, which can carry income limits and resale restrictions; read the program rules before you tour. Income limits and resale rules differ by building and program, so request them from the managing agent or the supervising agency.

How commuting differs by borough

Commuting options vary more by address than by borough. The MTA subway runs 24 hours a day in Manhattan, the Bronx, Brooklyn and Queens; the Long Island Rail Road links Queens and Brooklyn stations with Penn Station, Grand Central Madison and Atlantic Terminal; and Metro-North serves the Bronx and upper Manhattan. Staten Island relies on the Staten Island Railway, the fare-free Staten Island Ferry, express buses and cars. NYC Ferry adds options at some waterfront landings; check the current route map before counting on it. Drivers heading into the Manhattan core should check the MTA’s current toll rules on mta.info. Test each commute at the hours you will travel.

Co-op vs condo vs house in NYC: how does ownership type change the purchase?

Ownership type changes almost every step of the NYC home buying process. A co-op buyer purchases shares and needs board approval; a condo buyer receives a deed and usually needs only a board waiver; a house buyer receives a deed, deals directly with the city’s tax, buildings and water agencies, and pays for every repair.

How a co-op purchase differs

A co-op, or housing cooperative, is a corporation that owns a building. A co-op buyer purchases shares allocated to a specific apartment and signs a proprietary lease that gives the right to live there. Because the buyer becomes a shareholder, the board of directors approves each purchaser and sets rules on financing, subletting and renovations. Maintenance typically includes a share of the building’s property taxes and its underlying mortgage, which is why two apartments at similar prices can carry very different monthly costs.

How a condo purchase differs

A condominium unit is real property. The buyer receives a deed, a separate NYC Department of Finance tax bill and a monthly common-charge bill. Condo boards usually hold a right of first refusal, meaning the board could buy the unit on the same terms, and typically waive it. New-development condos are sold by a sponsor under an offering plan filed with the New York State Attorney General, and the offering plan controls many terms.

Three-unit, four-unit and mixed-use buildings

A building with three or more units is a multiple dwelling that must register with the NYC Department of Housing Preservation and Development (HPD); one- and two-family homes must also register when the owner does not live there. A building with four or more residential units moves into property tax Class 2, and a building with stores below apartments can require different financing, so ask your loan originator early how they treat four-unit and mixed-use buildings. Our guide to buying a multi-family home in Queens explains how legal rental units affect qualifying under the same city rules.

What does it cost to buy a home in New York City beyond the price?

Beyond the down payment, an NYC buyer typically pays attorney fees, lender fees, title insurance or a lien search, and, depending on the price and ownership type, the New York State mansion tax and the NYC mortgage recording tax. Co-op buyers usually pay building application fees, and buyers in new-development condos may also be asked to pay the transfer taxes a seller would normally pay.

City and state taxes a buyer may pay

The New York State “mansion tax” is 1% of the price on residential purchases of $1 million or more and is paid by the buyer, according to the NYS Department of Taxation and Finance; within New York City, the rate is graduated above $2 million. The NYC mortgage recording tax, under NYC Department of Finance and New York State rules, is roughly 1.8% of the loan amount for loans under $500,000 and 1.925% for loans of $500,000 and above on one-to-three-family homes and condo units. Co-op loans are not subject to it because they are share loans, not mortgages on real property.

The NYS real estate transfer tax and the NYC Real Property Transfer Tax are customarily paid by the seller in a resale, but some sponsor offering plans shift them to the buyer. On a new-development purchase, have your attorney confirm the allocation in the offering plan and the contract.

Confirm current rates with the NYS Department of Taxation and Finance and NYC Department of Finance before closing. For a line-by-line walk-through of how these items appear on a closing statement, see NYC closing costs explained for Queens buyers; the same city and state taxes apply in every borough.

Ongoing costs to compare before you choose

The NYC Department of Finance mails a Notice of Property Value each year, typically in January; read it for any house or condo you consider. Some co-op and condo owners receive the city’s Co-op/Condo Property Tax Abatement, which requires, among other conditions, that the unit be the owner’s primary residence and that it not be owned by a business such as an LLC; ask the managing agent whether you would qualify. Newer condos may carry a tax exemption that phases out, raising the bill as it ends, so check the building’s exemption or abatement status and remaining term on NYC Department of Finance records. House buyers should also budget for water and sewer charges, homeowner’s insurance and, in a Special Flood Hazard Area, flood insurance.

How do you get pre-approved for an NYC co-op, condo or house?

Get a full pre-approval, based on reviewed income, assets and credit, from a lender that regularly closes your ownership type in New York City. A house pre-approval does not automatically work for a co-op, because co-op financing depends on both the buyer and the building.

Co-op financing: the building has rules too

A co-op purchase is financed with a share loan secured by the shares and the proprietary lease, and the lender must be willing to lend in that specific building. The board sets its own requirements: a building may cap how much of the price can be financed, require a minimum amount of cash left after closing (often called post-closing liquidity), set a maximum debt-to-income ratio, or permit little or no financing. Each co-op’s purchase application states its own financing and down-payment requirements. Ask your lender to run your numbers at each building’s maximum financing level before you bid.

Condo financing: the lender reviews the building

For a condo, the lender evaluates the unit and the building, often through a managing-agent questionnaire covering owner-occupancy, unsold sponsor units, litigation and reserves. Government-backed loans may require the building to be on an approved list, so ask your lender to check a building’s approval status before you bid.

House financing: legal units and appraisals

For a two- or three-family house you will live in, many lenders count part of the rent from a legal rental unit toward qualifying; a unit the Department of Buildings does not recognize usually cannot be counted. Where truly comparable sales are scarce, an appraisal can come in below the contract price, so keep part of your cash as a cushion.

First-time buyers can look into the NYC Department of Housing Preservation and Development’s HomeFirst Down Payment Assistance Program, and check its current eligibility rules, income limits and assistance amount on the HPD website; co-op boards decide whether gifted or assisted funds are acceptable. Our first-time home buyer guide for Queens covers preparation in more depth.

Which NYC records should you check before making an offer?

Before making an offer in New York City, check the property’s ownership and mortgage history, tax record, legal use and open violations, zoning and landmark status, and flood zone. Most of these records are free to view online; your attorney runs formal searches later, but looking early helps you avoid bidding on a problem.

ACRIS and the Richmond County Clerk: who owns it and what is recorded

ACRIS, the Automated City Register Information System, is the NYC Department of Finance database of recorded property documents for Manhattan, the Bronx, Brooklyn and Queens, with document images from 1966 onward. It shows deeds, mortgages, satisfactions, easements and many liens. Staten Island documents are recorded with the Richmond County Clerk, which keeps its own system. The deed shows how the seller holds title, for example individually, through an estate or through a company. Department of Finance property records add the tax class, values, exemptions and any unpaid balance.

Department of Buildings: the Certificate of Occupancy and violations

A Certificate of Occupancy (CO) is a NYC Department of Buildings document stating a building’s legal use and number of units. According to the NYC Department of Buildings, buildings constructed before 1938 are not required to have a CO unless later work changed their use, egress or occupancy, so many older houses have none; the Department may issue a Letter of No Objection confirming legal use. Its online records also list permits, complaints and violations.

The practical question is whether the building’s actual use matches its legal use. Cellar apartments are a frequent problem: a cellar is more than half below curb level, and cellar space generally cannot be legally occupied as a dwelling. The “City of Yes for Housing Opportunity” zoning changes adopted in late 2024 created some new paths for accessory units, but eligibility is property-specific, so confirm the current rules with the Department of Buildings and the Department of City Planning before relying on a basement or accessory unit.

Zoning, landmarks and flood maps

The Department of City Planning’s ZoLa map shows a lot’s zoning district and whether it lies in a historic district, where exterior work generally needs a Landmarks Preservation Commission permit. For flood risk, look up each address on the FEMA Flood Map Service Center and the NYC Flood Hazard Mapper; city building rules may reference both FEMA’s effective maps and its preliminary maps, so check both for the address. A lender may require flood insurance in a Special Flood Hazard Area, common around Jamaica Bay, the Rockaway peninsula, southern Brooklyn and Staten Island’s shoreline.

Building-wide obligations for co-ops and condos

Buildings taller than six stories must file facade inspections every five years under the city’s facade inspection program (FISP), and larger buildings face emissions limits under Local Law 97; ask the managing agent whether the building is covered and how it plans to comply. Board minutes and financial statements show whether those costs are funded or may lead to an assessment.

How do offers, contracts and co-op board packages work in NYC?

In New York City, an offer is a proposal of price and terms; it becomes binding only when both parties sign a contract of sale prepared and negotiated by their attorneys. For co-ops, the contract is followed by a board package and, usually, an interview before the sale can close.

What a clear NYC offer includes

A clear offer states the price, down payment, financing type, requested closing timing and any concessions, with a pre-approval letter and the buyer’s attorney contact attached. For a co-op, showing that you have reviewed the building’s financial requirements helps the seller judge whether you will pass the board.

From accepted offer to signed contract

After acceptance, the seller’s attorney sends a draft contract to the buyer’s attorney, who reviews it, orders searches and, for co-ops and condos, reviews the financial statements, board minutes and governing documents while the buyer inspects. At signing, the buyer delivers a deposit customarily around 10% of the price, held in escrow, typically by the seller’s attorney. Until signing, either side can walk away.

Common contingencies

• Mortgage contingency. Lets a financing buyer cancel within agreed terms if a loan commitment is not issued.
• Co-op board approval. Co-op contracts customarily make the sale contingent on the board approving the buyer.
• Condo right of first refusal. The sale proceeds once the board waives its right to buy.
• Sponsor terms. New-development contracts follow the offering plan.

What goes into a co-op board package

A board package is the application a co-op buyer submits to the building, usually through the managing agent, after the contract is signed and often after the loan commitment arrives. Each building sets its own requirements, but packages commonly include:

• the purchase application and a signed copy of the contract;
• a detailed personal financial statement listing assets and debts;
• recent tax returns, pay stubs or an employment verification letter;
• the loan commitment letter, if the purchase is financed;
• personal and professional reference letters;
• credit-check authorizations and application fees.

Many boards then hold an interview. Co-op boards have broad discretion under New York law, but they may not discriminate on any basis protected by federal, state and city fair housing laws, including the NYC Human Rights Law. A complete package whose figures match your contract and loan file keeps the review moving.

How does buyer representation work in New York City in 2026?

In 2026, an NYC buyer who works with an agent typically signs a written buyer agreement before touring homes together. Buyer-agent compensation is negotiable, is not set by law and is not automatically paid by the seller.

These practices follow the 2024 NAR settlement and related rule changes, which remain in effect in 2026. A seller may agree to contribute toward the buyer’s agent’s compensation, or a buyer may ask for a concession in an offer, but neither is automatic.

New York also requires the NYS Disclosure Form for Buyer and Seller, published by the New York State Department of State, at the first substantive contact. It explains whether an agent represents you, the seller or, with written informed consent, both. For a fuller explanation of the role, read our guide to working with a buyer’s agent in NY.

Because building types and practices differ across the city, ask any agent you interview which boroughs and property types their work is concentrated in. My own work is concentrated in Queens and Brooklyn.

What happens at an NYC closing, and what should you do afterward?

At an NYC closing, funds and the loan are disbursed, the seller’s debts and the transfer taxes are paid, and ownership transfers: by recorded deed for houses and condos, or by stock certificate and lease assignment for co-ops. Afterward, confirm that documents were recorded and city bills are in the right name.

Documents you will see

A house or condo closing typically includes the deed, the mortgage and note if financed, the NYC and NYS transfer tax returns and the Real Property Transfer Report. For one- and two-family homes, the transfer filings include a smoke detector affidavit of compliance, which your attorney prepares. A co-op closing instead involves the stock certificate, an assignment of the proprietary lease, the lender’s recognition agreement and a financing statement.

The closing statement also includes adjustments, called apportionments, so each side pays its share of taxes, maintenance or common charges and water charges; in oil-heated houses, fuel left in the tank is often adjusted too.

After closing

• Check that the deed and mortgage appear in ACRIS or, on Staten Island, with the Richmond County Clerk.
• Sign up for the Department of Finance’s free property fraud alert service, which emails owners when a document is recorded against their property.
• Confirm that Department of Finance and Department of Environmental Protection bills are in your name or handled through escrow.

What mistakes slow down the NYC home buying process?

Most delays in the NYC home buying process come from treating ownership types as interchangeable, skipping early record checks, or assuming an accepted offer is a deal.

1. Using a pre-approval that ignores the building. A co-op’s financing cap or liquidity rule can disqualify a buyer the lender has already approved.
2. Comparing co-op and condo prices without monthly costs. Maintenance versus common charges plus taxes can reverse which apartment is more affordable.
3. Trusting the advertised unit count. A “three-family” listing may be a legal two-family with an extra cellar or attic unit.
4. Inspecting after signing. New York City contracts offer limited exits once signed, so the inspection belongs before.
5. Skipping the flood map. Bays, creeks and inlets reach well inland in parts of Queens, Brooklyn, the Bronx and Staten Island.
6. Submitting an inconsistent board package. Figures that do not match the contract or loan file invite questions and delays.

NYC buyer checklist

1. Get a full pre-approval suited to your ownership type.
2. Review the NYS Disclosure Form and sign a written buyer agreement before touring.
3. Choose an ownership type using total monthly cost, not price alone.
4. Before bidding, check recorded documents, DOF and DOB records, and both flood maps.
5. For co-ops, request the purchase application and financing rules early; for condos, the common charges and tax bill.
6. Retain a New York real estate attorney before making an offer.
7. Schedule the inspection as soon as the offer is accepted.
8. Budget for the taxes and fees that apply to your price and ownership type.

Buyers who want a closer look at specific areas can start with our pages on buying a home in Brooklyn, buying in Long Island City or buying in Forest Hills. Buyers comparing the city with Long Island, where the NYC mortgage recording tax rates and the NYC Real Property Transfer Tax do not apply, can read about buying in Nassau County. For a broader overview of the market, see our guide to real estate in New York for Queens and Brooklyn. If you also need to sell a home first, the New York home selling services page covers that side.

This article is for general informational purposes only and reflects conditions that may change. It is not legal, tax, or financial advice, an appraisal, or a guarantee of price or outcome; consult a licensed New York attorney, a CPA, and an NMLS-registered mortgage loan originator as appropriate. A CMA is an opinion of value, not an appraisal. Real estate brokerage services are offered by Agatha Lubas, Licensed Associate Real Estate Broker, NY License #10301213345, Keller Williams Realty Liberty, 96-10 101st Avenue, Ozone Park, NY 11416. The NYS Disclosure Form for Buyer and Seller, the NYS Housing and Anti-Discrimination Disclosure / Fair Housing Notice, and the brokerage’s Standard Operating Procedures are available on request. Equal Housing Opportunity.

Agatha Lubas

Licensed Associate Real Estate Broker · NY License #10301213345 · Keller Williams Realty Liberty

Agatha Lubas helps buyers, sellers and investors across Queens, Brooklyn, Nassau County and Suffolk County understand each ownership type and each step of a New York transaction. She works in English and Polish, so clients can talk through every detail in the language they find most comfortable.

Work with Agatha