How to Pay Your Property Registration Fee in NYC

If you’re buying a home, condo, or commercial space in New York City, you can’t skip the property registration fee. It’s not optional. It’s not negotiable. And if you don’t pay it correctly, your deed won’t be recorded - which means you don’t legally own the property. The fee varies depending on the property type, sale price, and location. But the process itself? It’s straightforward if you know the steps.

What exactly is the property registration fee?

The property registration fee in NYC is officially called the Real Property Transfer Tax. It’s charged by the New York City Department of Finance when ownership of real estate changes hands. This tax is separate from state transfer taxes, recording fees, and title insurance. You pay it at closing, and it’s collected by the city to fund public services like schools, roads, and emergency response.

The tax rate depends on the property’s value:

• 1% of the sale price for properties under $500,000
• 1.425% for properties between $500,001 and $2 million
• 1.625% for properties over $2 million

On top of that, if you’re buying a condo or co-op in a building with more than 35 units, you pay an extra 0.25% - called the Mansion Tax - if the sale price is $1 million or more. So a $1.2 million condo in Manhattan? You’re paying 1.425% + 0.25% = 1.675% in transfer tax.

Who pays the fee?

Legally, the buyer is responsible for paying the NYC real property transfer tax. But in practice, it’s often negotiated. In a hot market, sellers might agree to cover it to make the deal stick. In a buyer’s market, you’ll likely pay it yourself. Your attorney or closing agent will tell you what’s expected based on local norms and your contract.

Don’t assume it’s included in your mortgage or down payment. This is a separate line item. You’ll see it clearly listed on your Closing Disclosure form - usually under “Transfer Taxes” or “City Fees.”

How to pay the fee

You don’t pay the fee directly to a city office. You pay it through your closing agent - usually a title company or real estate attorney. Here’s how it works:

1. Before closing, your attorney or title company calculates the exact amount based on the sale price, property type, and location.
2. You wire the money or bring a certified check to closing. Cash is not accepted.
3. Your closing agent submits the payment electronically through the NYC Department of Finance’s online system, NYC eFiling.
4. They also file the deed and other documents - including Form TP-584, the Real Property Transfer Tax Return.
5. Once the city processes the payment and documents (usually within 1-3 business days), your deed is recorded in the County Clerk’s office.

There’s no in-person payment option at city halls anymore. All transactions are digital. If you try to walk into a Department of Finance office with a check, they’ll redirect you to your closing agent.

What if you pay late?

Delaying payment isn’t an option. The city doesn’t issue grace periods. If the transfer tax isn’t paid at closing, the deed won’t be recorded. That means:

• You can’t get a mortgage payoff or refinance later
• You can’t sell the property without clear title
• Your insurance company may deny claims
• You could face penalties: 5% of the unpaid tax per month, up to 25%

Some buyers think they can wait a few days after closing. That’s a mistake. The deed recording system locks automatically if the tax isn’t paid at the time of filing. You’ll need to file a correction, pay penalties, and wait weeks to fix it.

What documents do you need?

Your closing agent handles most of this, but you should keep copies of:

• Form TP-584 (Real Property Transfer Tax Return)
• Form TP-584-DD (Declaration of Consideration)
• Recorded deed (you’ll get a certified copy)
• Receipt from the Department of Finance showing payment

These aren’t just paperwork - they’re proof of ownership. Store them with your title insurance policy. If you ever sell the property, your buyer’s attorney will ask for these.

Common mistakes to avoid

Even experienced buyers mess this up. Here are the top errors:

• Confusing city and state taxes: New York State charges its own transfer tax (0.4% on residential, 0.65% on commercial). Don’t mix them up.
• Forgetting the Mansion Tax: If you’re buying a $1 million+ property, that extra 0.25% adds up fast. A $2.5 million apartment? That’s $6,250 extra.
• Assuming the seller pays: Unless it’s written in your contract, you’re on the hook.
• Using personal checks: Only certified checks, wire transfers, or ACH payments are accepted. Personal checks get returned.
• Not verifying the final amount: The closing agent calculates the tax. But if your sale price changed last-minute, the fee might be wrong. Double-check the numbers.

What if you’re buying from an estate or as a gift?

Even if you’re not paying cash - like inheriting a property or receiving it as a gift - you still need to register it. The fee is based on the property’s assessed value, not the sale price. In those cases, you file Form TP-584 with a “No Consideration” statement. The city will assign a value based on recent sales in the neighborhood.

There’s no exemption for family transfers. The tax applies whether you’re buying from your sibling, your parent, or a stranger.

How long does it take to get your deed recorded?

Once the fee is paid and documents are submitted, the NYC Department of Finance processes the filing within 1-3 business days. The County Clerk’s office then records the deed - usually another 2-5 days. Total time: 3-8 business days.

You can check the status online using the NYC ACRIS system. Just enter your property address or the document number from your closing papers. If you don’t see your deed recorded after 10 days, contact your closing agent immediately.

What if you’re buying a co-op?

Co-ops are different. You’re not buying real estate - you’re buying shares in a corporation that owns the building. So technically, there’s no property transfer tax. But wait - NYC still charges a fee. It’s called the Co-op Transfer Tax, and it’s 1% of the purchase price if the building has more than 35 units. Smaller buildings? No tax. But your co-op board might charge a transfer fee on top of that - sometimes $1,000-$5,000.

Make sure your attorney confirms whether the building is subject to the city’s transfer tax. Don’t assume.

Can you get a refund if the deal falls through?

If the sale doesn’t close, and the deed was never recorded, you can request a refund. But only if the tax was paid and the filing was rejected or withdrawn. You’ll need to submit Form TP-584-R (Refund Request) with proof of cancellation. Refunds take 6-12 weeks.

If you paid the tax but the deal collapsed before filing, you don’t owe anything - and you don’t get charged. The closing agent cancels the submission.

Final tip: Budget for it

Don’t wait until closing day to realize you owe $15,000 in transfer tax. Start planning early. Add the tax to your closing cost estimate. For a $750,000 home, expect to pay around $10,700. For a $2 million condo? $28,500 plus the Mansion Tax. That’s more than your home inspection, appraisal, and moving costs combined.

Know the numbers before you sign. That’s how you avoid surprises - and make sure your new property is truly yours.