California

Closing costs in California: what buyers and sellers pay

On a $1,000,000 home in the City of Los Angeles, transfer taxes alone are $5,600. Line-by-line California closing costs: title, escrow, recording, taxes.

Checked on against the official sources listed at the bottom of the page.

In short

No official source gives a “typical” California total, so add it up line by line. Los Angeles County charges $1.10 per $1,000 in transfer tax (Registrar-Recorder) and the City of Los Angeles adds $4.50 per $1,000 (Office of Finance): $5,600 on a $1,000,000 home. Title insurers file their own rates (Insurance Code § 12401.1).

Why there is no single “typical” total

Only a few California closing costs are fixed by a government body: transfer taxes, set by the county and some cities, and recording fees, set by state law. Private companies price the rest: lender charges, title insurance, escrow, inspections and brokerage compensation. Prorations depend on the house, the loan and the closing date.

Your lender’s figures appear on two federal forms. The lender must send the Loan Estimate within three business days of receiving your application. You must receive the Closing Disclosure at least three business days before closing (Consumer Financial Protection Bureau). For a general walk-through, see closing costs explained.

Line by line: what each cost is

Lender charges. Origination, appraisal, credit report and underwriting fees are set by the lender and the companies it hires. No California rate table applies. Compare them across lenders on the Loan Estimate.

Title insurance. Every title insurer, underwritten title company and controlled escrow company must file its rate schedules with the Insurance Commissioner. A filing cannot take effect before the 30th day after the Commissioner receives it (§ 12401.1). Before a company uses a rate, the filing must be on public display for at least 30 days in each of its offices in the county where it applies (§ 12401.7). You can ask any title company for its filed rate schedule. We do not quote a premium here: there is no single state rate. See title insurance explained.

Escrow. In California, an escrow holder keeps the money and documents until closing. The Department of Financial Protection and Innovation (DFPI) explains that escrow companies are either “licensed” (independent companies licensed by the DFPI under the Escrow Law) or “controlled” (run by a title insurer, a real estate broker, an attorney or a bank, among others). Controlled escrows answer to their owner’s regulator. The DFPI’s consumer page sets no fee schedule; ask for the escrow fee in writing. Do not confuse this with the escrow account your lender may keep for taxes and insurance after closing.

Transfer tax. Counties may tax each deed at $0.55 per $500 of value (Revenue and Taxation Code § 11911). Los Angeles County does. The City of Los Angeles adds $2.25 per $500, and the Measure ULA tax of 4% or 5.5% on sales over $5,400,000 closing after June 30, 2026 (Office of Finance). Full rules and exemptions are on our California transfer tax page.

Recording fees. The Los Angeles County Registrar-Recorder charges fees set by Government Code §§ 27360-27388.2. For a grant deed, as of October 2026: a $15 base fee, a $7 fraud notification fee, a $2 restrictive covenant modification fee and $3 for each additional page. There is also a $10 survey monument fee when the legal description is not on a recorded tract map. A $20 fee applies if no Preliminary Change of Ownership Report is filed with the deed. The $75 Building Homes and Jobs Act fee is not charged on documents recorded in connection with a transfer subject to the documentary transfer tax, or with the transfer of a residential dwelling to an owner-occupier (Gov. Code § 27388.1).

Property taxes. Current-year taxes are usually prorated in escrow. California adds a step: the Los Angeles County Assessor warns that you may owe a supplemental property tax based on the difference between the old assessed value and your new one, which is generally your purchase price. The bill is prorated for the months left in the fiscal year. It arrives about six months after purchase, is your responsibility, and is generally not paid from your lender’s impound account. See California property tax.

Attorney. California closings run through escrow, and no official source we read requires an attorney. If you hire one, the fee is set by the attorney. See when to hire a California real estate attorney.

Who pays what in California

No official source sets a default split of closing costs between buyer and seller in California. The state statute taxes the deed but does not name who pays, and the City of Los Angeles FAQ does not say either. The split is written into your purchase contract and escrow instructions, so read them line by line. Brokerage compensation is covered in real estate commission.

What it costs: a worked example in Los Angeles

This is an example at a round price, not a quote. Assume a $1,000,000 home in the City of Los Angeles, a $800,000 loan and a closing in October 2026. Only the lines fixed by law or by the county are calculated.

LineRule usedAmount
County documentary transfer tax$1,000,000 ÷ $500 × $0.55$1,100
City of Los Angeles transfer tax$1,000,000 ÷ $500 × $2.25$4,500
Measure ULA taxPrice is not over $5,400,000$0
Recording a 3-page grant deed (page count assumed)$15 + $7 + $2 + 2 × $3; the $75 SB 2 fee does not apply (Gov. Code § 27388.1)$30
Recording a 15-page deed of trust (page count assumed)$15 + $10 + $2 + 14 × $3, if the $75 fee exemption applies$69
Title insuranceEach insurer’s filed rateAsk for the filed schedule
Lender charges, escrow fee, inspectionSet by each providerSee your Loan Estimate and escrow quote
Tax proration, impounds, supplemental taxDepends on the tax bill and closing dateSee your Closing Disclosure; supplemental bill about 6 months later

The fixed lines add up to $5,699 in this example. The transfer taxes are by far the largest of them. In a part of the county with no city tax, the transfer tax would be $1,100.

Above $5,400,000, a sale in the City of Los Angeles owes $240,000 in ULA tax on top of the base taxes, since the 4% rate applies to the whole price (Ordinance 187692). Prices for the city are on our Los Angeles page and California home prices.

Frequently asked questions

How much is the transfer tax in Los Angeles?

The county charges $1.10 per $1,000 and the City of Los Angeles adds $4.50 per $1,000: $5.60 in total. Sales over $5,400,000 closing after June 30, 2026, also owe the Measure ULA tax of 4% or 5.5%.

Are title insurance rates set by the state in California?

No. Each title insurer files its own rate schedule with the Insurance Commissioner, and a filing takes effect no earlier than 30 days after it is received (Insurance Code § 12401.1). Rates can differ between companies, so ask for the filed schedule.

Who regulates escrow companies in California?

Independent escrow companies are licensed by the DFPI. Escrows run by title companies, brokers, attorneys or banks answer to those businesses’ regulators, such as the Department of Insurance or the Department of Real Estate.

What is a supplemental tax bill?

It is an extra property tax bill based on the gap between the previous assessed value and your new one, usually your purchase price. The Los Angeles County Assessor says it comes about six months after you buy and is generally not paid through your lender’s impound account.

When will I know my exact closing costs?

Your lender must send a Loan Estimate within three business days of your application. You must receive the Closing Disclosure at least three business days before closing (CFPB).

Compare with the other states: Closing costs by state.

More California guides

Sources

California · All states · Federal guides