California Closing Costs: What Buyers and Sellers Pay, and Who Pays by County

California closing costs in short

Closing costs are paid through escrow, the neutral third party that holds the money and documents until the sale closes. The Department of Insurance describes escrow as the closing service that handles the funds and documents in a real estate transaction. Your escrow officer prepares a settlement statement; borrowers also receive a Closing Disclosure from the lender.

Old Republic Title's 2025 county guide stresses that these allocations are based on custom only and can be negotiated in the purchase contract. The Department of Insurance says the same about title premiums: who pays is local custom and practice, not law.

Seller closing costs in California

Seller cost: real estate commissions

Commission is usually the largest seller cost, but it is set by your listing agreement and any offer of buyer-broker compensation you agree to, not by law. How buyer-agent pay is arranged changed in 2024, so read both agreements before you list. Our California real estate commission guide covers typical rates and how to negotiate them.

Seller cost: county documentary transfer tax

Under Revenue and Taxation Code 11911, counties charge $0.55 for each $500 of value or fraction of $500, which is $1.10 per $1,000. It applies to the consideration or value conveyed, not counting any lien or loan that stays on the property, and only when that value exceeds $100. Old Republic's county guide lists the seller as the customary payer in nearly every county. The California transfer tax guide covers the exemptions and how the tax is declared on the deed.

Seller cost: city transfer taxes

Some cities add their own tax, collected by the county recorder at the same time. Rates range from small to very large. Los Angeles charges $2.25 per $500 plus Measure ULA; Oakland, Berkeley and Alameda charge $12 to $25 per $1,000; San Francisco charges its own tiered tax that includes the county portion. The table in the transfer tax section below lists the rates we could confirm.

Seller cost: owner's title insurance

An owner's title policy protects the buyer against title defects that exist in the public records at purchase. In Southern California, the Department of Insurance notes, the seller usually pays this premium. In Alameda, Contra Costa, Marin, Napa, San Mateo, Solano, Sonoma and San Francisco counties the buyer customarily pays, and many Central Valley and mountain counties split it. It is a one-time premium paid at the close of escrow.

Seller cost: escrow fee share

In most California counties the escrow fee is split 50/50. Old Republic lists the buyer as the customary payer in several Bay Area counties, including Alameda, Contra Costa, Marin, San Mateo and San Francisco, and the seller in Santa Clara, San Benito and Sutter counties. Escrow companies quote their own fees, so ask for the quote early.

Seller cost: FTB real estate withholding

California requires withholding of 3 1/3% (.0333) of the sale price as a prepayment of the seller's state income tax, or an alternative amount based on estimated gain. It is not an extra tax: you claim it on your return. No withholding is required if the price is $100,000 or less, if the home was your principal residence under the federal two-of-five-years rule, or if it was last used as your principal residence, among other exemptions listed on Form 593. File the form with your escrow officer before closing. For the tax itself see the capital gains guide.

Seller cost: payoffs, prorations, HOA and disclosure fees

Escrow pays off your mortgage and any liens, and prorates property taxes and HOA dues to the closing date. Ask your HOA manager what it charges for the resale documents the seller must provide, and ask your agent or escrow officer what a natural hazard disclosure report will cost; the seller disclosure guide lists the required forms.

Buyer closing costs in California

Buyer cost: lender fees and the Loan Estimate

Origination charges, discount points, appraisal, credit report and other loan fees are shown on the Loan Estimate the lender gives you after you apply. The lender must give you the Closing Disclosure, a five-page form with the final loan terms and costs, at least three business days before you close, so you can compare it with the Loan Estimate and ask about any change.

Buyer cost: lender's title policy

If you borrow, the lender requires a lender's title policy for the loan amount, and the buyer pays for it. The Department of Insurance points out that a lender's policy does not protect you; only an owner's policy does. When one company issues both, ask about a concurrent rate.

Buyer cost: escrow share and recording

Expect to pay your share of the escrow fee under local custom, plus recording fees for the deed and deed of trust. In the Bay Area counties listed above, the buyer's share can be the whole escrow fee.

Buyer cost: prepaid property tax and the supplemental bill

Under Prop 13 your assessed value resets to market value at purchase, and the county issues a supplemental bill for the rest of the fiscal year, separate from the regular bill. The base rate is 1% of assessed value plus voter-approved local rates; on a $761,538 purchase the 1% portion alone is about $7,615 a year. The California property tax guide explains the supplemental bill and local rates.

Buyer cost: insurance, impounds and prepaid interest

Your lender will tell you what insurance must be in place at closing and whether it will collect property tax and insurance for an impound account; those prepaid items appear on the Loan Estimate and Closing Disclosure. In parts of the state the insurance cost is now a deciding factor; get a quote before you remove contingencies, and read the homeowners insurance guide and the FAIR Plan guide if coverage is hard to find.

Buyer cost: HOA transfer fees and Mello-Roos

Ask whether the association charges the buyer a transfer or setup fee. Newer communities may also carry a Mello-Roos special tax that shows on the property tax bill. Check both before you sign; the Mello-Roos guide shows how to look up a parcel's special taxes. First-time buyers can find assistance programs in the first-time homebuyer guide.

Who pays title and escrow, by county

These customs are from Old Republic Title's California closing cost guide (July 2025). In every county listed, the seller customarily pays the county transfer tax. Everything here can be changed by agreement in the purchase contract.

Transfer tax on a typical home in each major county

The county tax is the same everywhere, so the bill depends on price. The table applies $0.55 per $500 (rounded up to the next $500) to Zillow's typical home value for each county in September 2026. City taxes are extra where they apply.

City transfer tax rates we confirmed

• Los Angeles: $2.25 per $500, plus Measure ULA of 4% of the total value on sales above $5,400,000 and under $10,900,000, or 5.5% at $10,900,000 and above, for sales from July 1, 2026 (the thresholds were $5,300,000 and $10,600,000 for the year before).
• Culver City: 0.45% up to $1,499,999, rising to 1.5%, 3% and 4% in higher bands.
• Santa Monica: $3.00 per $1,000 up to $4,999,999, $6.00 to $7,999,999 and $56.00 at $8,000,000 and above.
• Pomona and Redondo Beach: $2.20 per $1,000.
• San Francisco: $7.50 per $1,000 from $1,000,000 to $4,999,999, rising to $60.00 at $25,000,000 and above; this includes the county tax.
• Oakland: $15.00 per $1,000 from $300,001 to $2,000,000; Berkeley: $15.00 up to $1,700,000 and $25.00 above.
• San Jose, Palo Alto and Mountain View: $3.30 per $1,000, and San Jose adds 0.75% to 1.5% on sales above $2,300,000.
• Sacramento: $2.75 per $1,000; Santa Rosa, Petaluma and San Rafael: $2.00 per $1,000.

Worked examples: California closing costs with real numbers

Example 1: a seller in San Diego County

A home sells for $926,979, San Diego County's Zillow typical value. The county transfer tax is $926,979 rounded up to $927,000, divided by $500 (1,854) and multiplied by $0.55: $1,019.70. By custom the seller also pays the owner's title policy and half the escrow fee. If the home was the seller's principal residence, no FTB withholding applies. If it was a rental, escrow withholds 3 1/3% (.0333) of the price, $30,868.40, unless the seller elects the gain-based calculation on Form 593.

Example 2: the same price inside the City of Los Angeles

At Los Angeles County's typical value of $871,674, the county tax is 1,744 x $0.55 = $959.20 and the City of Los Angeles base tax is 1,744 x $2.25 = $3,924.00, for $4,883.20 in total. Measure ULA does not apply because the price is below $5,400,000. The same house in Pasadena or another city without its own tax would pay only the $959.20.

Example 3: a Bay Area sale

At Alameda County's typical value of $1,044,951, the county tax is $1,149.50. Inside Oakland, the city adds $15.00 per $1,000, about $15,674, which Old Republic lists as customarily split between buyer and seller in Alameda County. The buyer also customarily pays the escrow fee and owner's title policy there, so the split of costs looks very different from San Diego.

Example 4: a buyer's prepaid property tax

A buyer paying $761,538, Zillow's statewide typical value, will owe about $7,615 a year at the 1% Prop 13 base rate before voter-approved local rates. Escrow prorates the current bill to the closing date, and the supplemental bill for the higher assessed value is issued separately, so ask your lender whether the impound account will cover it or set aside cash.

How to lower your closing costs

• Compare title insurance rates. Every title insurer, underwritten title company and controlled escrow company must file its rates with the Insurance Commissioner, and rates differ by company. You may use one company for escrow and another for title.
• Ask about discounts. The Department of Insurance notes discounts may be available for first-time buyers and for concurrent owner's and lender's policies.
• Negotiate the custom. Who pays escrow, title and city tax is custom, not law, so it can be part of your offer or counteroffer.
• File Form 593 early. Sellers who qualify for the principal residence exemption avoid having 3 1/3% held back at closing.
• Compare Loan Estimates. Lender fees and points vary the most; get at least two estimates on the same day.

Common closing cost mistakes in California

• Using another region's custom. A Southern California buyer moving to the Bay Area can be surprised to pay the escrow fee and owner's title policy.
• Forgetting the city tax. In Oakland or Berkeley it can be more than ten times the county tax, and San Francisco's is several times it.
• Missing the Measure ULA threshold. In Los Angeles the 4% rate applies to the whole price once a sale passes the threshold, so a price just above it costs far more than one just below.
• Not budgeting for the supplemental tax bill. It is issued separately from the regular bill, so confirm who pays it and when.
• Treating FTB withholding as a fee. It is a prepayment of income tax and can be avoided with a valid exemption.
• Not checking the title policy. The owner's policy amount should match the price and the effective date should match the closing date.