Seller Transaction Costs – What To Expect

While some of the items below are negotiable and/or may not apply to every seller, typically, sellers can expect to pay for the following:

  • Real estate agent/broker commissions
  • Owners policy of title insurance
    Title Insurance is usually obtained when real property is purchased.
    The policy of title insurance insures the owner and/or the lender of ownership of the property.
  • One half of the sub-escrow fee charged by the title company for handling payoff funds
  • One half of the base escrow fee, in addition to fees for handling payoffs, paying California Withholding tax, and document preparation.
  • Documentary transfer tax for the County of Los Angeles – $1.10 per thousand based on the sales price
  • City transfer tax based on the sales price:
    • Los Angeles: $4.50 per thousand
    • Santa Monica: $3.00 per thousand
    • Malibu, Beverly Hills: -0-
  • City report fees: Los Angeles $70.20, Santa Monica $234.46
  • Retrofitting, carbon monoxide & smoke detectors, gas shut off valve and water heater strapping:
  • Certificate of Compliance: Los Angeles – $15, Santa Monica – $50
  • Natural Hazard Disclosure Report
  • Termite inspection and Section 1 corrective work
  • Payoffs of loans against the property (principal, accrued interest, statement fee, reconveyance fee)
  • Judgements and/or liens against the seller
  • Taxes and homeowners association dues (prorated and paid current)
  • Homeowners association charges for documents and transfer fees
  • Recording fees for grant deed, reconveyance, releases
  • Notary fees
  • Messenger fees
  • California Withholding/Franchise Tax Board taxes (if you are not exempt)
  • IRS Withholding (if you are a foreign person and are not exempt)
  • The seller may agree to purchase a one-year home protection plan for the buyer
  • Costs for repairs that buyer and seller agree on

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