Seller Closing Costs in California: Who Pays What?
Who pays closing costs in California? The honest answer is that both the buyer and the seller pay some, and exactly who pays what depends on your contract and, often, on local custom in your county. For sellers, closing costs can add up to a meaningful amount, so it helps to know what to expect before you accept an offer.
We’ve been buying houses in California since 2003, and we look at seller net numbers every day. We’re not escrow officers, tax advisors, or attorneys, so please get an estimate from your escrow or title company for your actual numbers. Here’s a plain-English breakdown.
Why “Who Pays” Varies in California
California doesn’t have one statewide rule for splitting every closing cost. Many fees are negotiable and spelled out in the purchase contract. On top of that, customs differ from county to county: in some areas the seller traditionally pays for the owner’s title policy and escrow fees, in others they’re split or paid by the buyer. The California Land Title Association explains this county-by-county variation on its consumer page, Understanding Closing Costs.
The takeaway: always read the contract, and ask your escrow officer for an estimated closing statement early.
Common Seller Closing Costs in California
Here are the costs California sellers most often see on their closing statement.
Real estate commissions
If you sell with an agent, commission is usually the largest single cost. Commissions are negotiable, and how they’re structured between the listing and buyer’s agents is agreed in writing.
Documentary transfer taxes
California counties charge a documentary transfer tax when property changes hands, generally $1.10 per $1,000 of the sale price. Some cities, including several in the Bay Area, add their own city transfer tax on top, and in some cities that tax is much higher. Who pays it can be negotiated, but in many areas the seller customarily does. Check your city and county rates with your escrow officer.
Escrow and title fees
Escrow companies charge a fee to manage the closing, and title companies charge for the title search and title insurance. Depending on your county’s custom and your contract, the seller may pay all, some, or none of these.
Loan payoff and liens
Your existing mortgage, any home equity line, and any liens (including a solar loan or PACE assessment; see selling a house with solar panels) are paid off from your proceeds at closing. Your lender will provide a payoff statement that includes interest through the closing date. If you’re wondering whether you can sell with a mortgage still on the house, our guide on selling a house with a mortgage explains how it works.
Prorated property taxes and HOA dues
Property taxes and HOA dues are usually prorated so each side pays for the time they own the home. If you’ve prepaid, you may get a credit; if you’re behind, the balance comes out of your proceeds.
Other common costs
- Repair credits or concessions negotiated after the buyer’s inspection
- Natural hazard disclosure report and other required reports
- Home warranty if you agreed to provide one
- Recording, notary, and courier fees
- HOA transfer or document fees in some communities
How to Estimate Your Net Proceeds
To get a realistic picture of what you’ll walk away with, start with the expected sale price and subtract:
- Your mortgage payoff and any liens
- Commissions (if listing)
- Transfer taxes
- Your share of escrow and title fees
- Repairs, credits, and concessions
- Prorations and other fees
If you’ve made a profit on the sale, also ask a tax professional whether the home sale capital gains exclusion applies to you.
Don’t forget the costs that never appear on the closing statement: repairs and prep before listing, staging, and the mortgage, taxes, insurance, and utilities you keep paying while the house is on the market. Our cash offer vs. listing page has a side-by-side example of how these add up.
How Closing Costs Work When You Sell for Cash
When you sell to us, you don’t pay any agent commission, and we cover the typical closing costs, including county and city transfer taxes. You’ll still pay off your own mortgage and any liens from the proceeds, and property taxes are prorated as usual. Exactly which costs we cover is spelled out in writing in the offer, so there are no surprises, and everything closes through a licensed title and escrow company. If you’d like to see how a sale works without an agent in general, read our guide on selling your house without a realtor in California.
When a Cash Sale Isn’t the Best Option
Lower closing costs don’t automatically mean more money in your pocket. If your home is in great condition and in high demand, listing with a good agent will often bring a higher price that more than covers the commission and fees. A cash sale tends to make the most sense when the house needs repairs, you need a set timeline, or the holding costs of a long listing would eat into your proceeds. The best move is to compare net numbers side by side.
Frequently Asked Questions
Both pay some closing costs. Which costs each side pays depends on the purchase contract and often on local custom in your county. Your escrow officer can tell you what’s typical where your home is located.
It varies with the sale price, your city and county, whether you use an agent, and what you negotiate. Commissions and transfer taxes are often the largest items. Ask your escrow or title company for an estimated closing statement.
Often, but it’s negotiable. Counties generally charge $1.10 per $1,000 of the sale price, and some cities add their own transfer tax. In many areas the seller customarily pays, so check local rates and your contract.
Yes. Closing costs are largely negotiable. Some buyers, including many cash buyers, agree to cover typical closing costs. Make sure the arrangement is written into the purchase agreement.
Yes. The seller’s share of closing costs, along with mortgage payoffs and liens, is usually deducted from the sale proceeds at closing, so you typically don’t pay them out of pocket.
Want to See Your Numbers?
If you’d like to compare what you’d net from listing versus a cash sale, we’re happy to give you an honest, no-obligation offer and walk you through the numbers, including the closing costs and transfer taxes we cover. There’s no pressure either way. Call Lawrence at (510) 824-8710 or fill out the form below.