Closing Costs in California: Who Pays What
Closing costs are the fees and taxes paid to complete a home sale, on top of the price. Here's what they are in California and who customarily pays each one.
Last updated November 2026
What closing costs are
Closing costs are the charges that pay the people and agencies involved in your sale: escrow, title, the county and city, and your lender. They're settled through escrow on the closing statement.
Some costs fall on the seller, some on the buyer, and some are split. Who pays is set in your purchase agreement.
Seller closing costs
- Real estate commission
- Escrow fee (the seller's share)
- Owner's title insurance policy
- County documentary transfer tax, plus city transfer tax where a city charges one
- Loan payoff and reconveyance
- Property tax and HOA prorations
Buyer closing costs
- Escrow fee (the buyer's share)
- Lender's title insurance policy, if you have a loan
- Lender costs and prepaid items, such as impounds, prepaid interest and homeowners insurance
- Recording fees
- Property tax and HOA prorations
Who pays what in Southern California
These customs apply in Los Angeles, Orange, San Diego, Riverside and San Bernardino counties.
| Item | Customarily paid by | Notes |
|---|---|---|
| Escrow fee | Split between buyer and seller | With Cloud Escrow the seller's escrow fee is $0. Other closing costs and service fees may apply. |
| Owner's title insurance policy | Seller | Protects the buyer's ownership. |
| Lender's title insurance policy | Buyer | Protects the lender. |
| County transfer tax | Seller | $1.10 per $1,000 in every California county. |
| City transfer tax (including LA's Measure ULA) | Seller | Only in cities that charge one. Culver City notes either party may pay its city tax and both are liable to the city. |
These are customs, not law. Every item is negotiable in the purchase agreement. Sources: Chicago Title 2026 guide · California Department of Insurance title insurance guide · UC Office of the President – title insurance in California
The biggest items
Commission. For most sellers, the real estate commission is the largest closing cost. It's set by your listing agreement.
Transfer tax. Every county charges $0.55 per $500 of value ($1.10 per $1,000). Some cities add their own tax, and the City of Los Angeles adds Measure ULA on higher-priced sales. See county and city rates.
Title premiums. Title insurers file their rates with the California Insurance Commissioner, and premiums vary by insurer and price (California Department of Insurance). Your title company will quote the exact amount.
Lender costs. If you're borrowing, your lender's charges and prepaid items are part of your cash to close. Your lender provides those figures.
Recording. The SB 2 (Building Homes and Jobs Act) fee is $75 per document, capped at $225 per transaction. It doesn't apply to documents recorded in connection with a transfer subject to documentary transfer tax, or a transfer of a home to an owner-occupier (LA County Registrar-Recorder).
Property tax proration and the supplemental tax bill
California's property tax year runs July 1 to June 30. The 1st installment is due Nov 1 and delinquent after Dec 10. The 2nd is due Feb 1 and delinquent after Apr 10, with a 10% penalty per late installment.
Escrow prorates the current year's taxes between buyer and seller as of the closing date (LA County Treasurer-Tax Collector).
A change of ownership triggers reassessment at market value. The buyer gets a separate supplemental tax bill for the difference, prorated for the rest of the fiscal year, and two bills if the sale closes January–May (Board of Equalization).
Estimate yours
Use the closing cost calculator for a quick buyer or seller estimate, or the Seller Net Sheet to see what a seller walks away with.
Closing costs FAQ
Who pays for title insurance in California?
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In Southern California, the seller customarily pays for the owner's title insurance policy and the buyer pays for the lender's policy. These are customs, not law, and can be changed in the purchase agreement.
Who pays the transfer tax in Southern California?
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The seller customarily pays both the county transfer tax and any city transfer tax, including the City of Los Angeles's Measure ULA. It's negotiable in the purchase agreement.
Who pays the escrow fee?
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In Southern California the escrow fee is customarily split between buyer and seller. With Cloud Escrow, the seller's escrow fee is $0. Other closing costs and service fees may apply.
Are closing costs negotiable?
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Yes. Who pays each cost is a custom, not a law, and every item is negotiable in your purchase agreement.
Does escrow prorate property taxes?
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Yes. Escrow prorates the current year's property taxes between buyer and seller as of the closing date. The buyer may also get a separate supplemental tax bill after the sale.
Ready to open escrow?
This guide is general information, not legal or tax advice. Customs vary by county, and every cost is negotiable in your purchase agreement.