Two Markets, Two Sets of Rules
Simplicity Title operates across both New Jersey and New York, and one of the most common questions we hear is: "How different are closings between the two states?" The answer is: meaningfully different. From the role of attorneys to the way transfer taxes are calculated, NJ and NY each have distinct customs, regulations, and costs that every buyer, seller, and professional should understand.
Attorney Involvement
New Jersey
New Jersey requires attorneys to be involved in real estate transactions, but the level of involvement varies. Most NJ transactions include a three-business-day attorney review period after the contract is signed, during which either party's attorney can cancel or modify the contract. Title companies like Simplicity Title coordinate closely with attorneys throughout the process.
New York
New York is considered an "attorney state" -- attorneys play a central role in virtually every real estate transaction. The buyer's attorney and seller's attorney negotiate the contract, manage due diligence, and are typically present at closing. The title company works in conjunction with (not in place of) legal counsel.
Transfer Taxes
New Jersey
The NJ Realty Transfer Fee is paid by the seller and is calculated on a graduated scale. For residential transactions, the rates range from $2.00 per $500 for the first $150,000 to $6.05 per $500 for amounts over $1 million. There is also a 1% "mansion tax" on total consideration over $1,000,000. First-time homebuyers may qualify for a partial exemption.
New York
NY has both a state transfer tax (0.4% of the sale price, with an additional 0.25% for properties over $3 million in NYC) and, in New York City, an additional city transfer tax that can range from 1% to 1.425%. The transfer tax is typically paid by the seller, though in NYC it is common for the buyer to pay the "mansion tax" (1% to 3.9% on properties over $1 million). These costs can be significant, especially in the NYC market.
Mortgage Recording Tax
New Jersey
New Jersey does not impose a mortgage recording tax. The mortgage is recorded with a standard filing fee.
New York
New York imposes a mortgage recording tax of approximately 1.8% to 2.175% of the loan amount (the exact rate depends on the county and whether the property is in NYC). This is one of the largest closing costs for NY buyers. Fortunately, CEMA transactions can dramatically reduce this tax on refinances.
Title Insurance Rates
New Jersey
NJ title insurance premiums are filed with and regulated by the Department of Banking and Insurance (DOBI). Rates are standardized across all title companies -- meaning you will pay the same premium regardless of which company you choose. The differentiator is service, speed, and expertise. See our pricing page for current NJ rate tables.
New York
NY title insurance rates are filed with the Department of Financial Services (DFS). Like NJ, rates are standardized, so the choice of title company comes down to quality of service. NY premiums are generally higher than NJ due to a different rate structure. Use our title insurance calculator to compare.
Closing Timeline
New Jersey
A typical NJ purchase closing takes 30-45 days from contract to close, though cash transactions can close faster. The attorney review period (3 business days), home inspection, mortgage commitment, and title search are the primary timeline drivers.
New York
NY closings generally take 60-90 days for purchase transactions. The longer timeline reflects the more complex attorney negotiation process, co-op and condo board approval requirements (in NYC), and the additional lender and title work required. Refinances with CEMA may add 2-4 weeks.
Closing Location
New Jersey
NJ closings typically take place at the title company's office or the buyer's attorney's office. Simplicity Title has three offices across NJ for convenient scheduling.
New York
NY closings often take place at the buyer's lender's attorney's office, though they can also occur at the title company's office or virtually (for certain transaction types).
Which State Has Higher Closing Costs?
Generally, New York closing costs are higher due to the mortgage recording tax, higher transfer taxes (especially in NYC), and attorney fees. Buyers in the New York City metro area should budget 3-5% of the purchase price for total closing costs, compared to 2-4% in New Jersey. Our closing cost calculators can help you estimate specific costs for your transaction.
Closing in NJ or NY?
Our team handles settlements across both states -- every county, every transaction type.
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