Are you trying to decode what you’ll actually pay at the closing table in Los Angeles? You are not alone. Closing costs can feel fuzzy until you see the line items in black and white. In this guide, you’ll learn what these costs cover, who typically pays them, and smart ways to plan for them in LA. Let’s dive in.
Closing costs at a glance
Closing costs are the fees and prepaid items needed to complete a real estate sale. They are separate from your down payment. In Los Angeles, buyers often spend about 2% to 5% of the purchase price on closing costs. Sellers commonly spend about 6% to 10% of the sale price once commissions and standard seller fees are included.
Those ranges are wide for a reason. Some costs are percentage-based while others are flat. Loan programs, property type, and local items like city transfer taxes or HOA fees also affect the total. Buyers receive a Loan Estimate early and a final Closing Disclosure at least three business days before closing. Sellers can review a preliminary closing statement and estimated net proceeds with escrow early in the process.
Buyer closing costs in Los Angeles
Loan and lender fees
- Loan origination fee or lender points: typically 0.5% to 1% of the loan amount for origination. You can choose to pay additional discount points to lower your rate.
- Underwriting, processing, administration: usually $300 to $1,200 depending on lender.
- Appraisal: typically $500 to $1,000, higher for unique or high-value properties.
- Credit report: $25 to $60.
- Required third-party reports: $50 to $400 for items like flood certifications or special inspections.
- Mortgage insurance and escrow reserves: if required, the first month of PMI and deposits for taxes or insurance may be collected at closing.
Title and escrow services
- Lender’s title insurance policy: required by most lenders and priced by regulated schedules. Expect hundreds to a few thousand dollars based on loan size.
- Owner’s title insurance policy: in California it is customary for the seller to pay, though this is negotiable.
- Escrow fees: often split between buyer and seller in Southern California. The total escrow fee typically ranges $500 to $2,500, with the buyer paying half if split.
- Recording fees: $50 to $300 to record the deed of trust and related documents.
- Notary fees: $10 to $50.
Prepaids and prorations
- Prepaid mortgage interest: depends on your closing date and rate.
- Homeowner’s insurance: many lenders collect the first year’s premium at closing. Plan for $600 to $2,000+ depending on coverage and property.
- Property tax proration and escrow deposits: Los Angeles County’s base tax rate is about 1% of assessed value plus any local assessments. Escrow may collect reserves for future tax payments.
- HOA dues: dues are prorated from the closing date forward. Some associations require one or more months of dues to seed your account.
Inspections and contingencies
- General home inspection: typically $300 to $800 based on size and scope.
- Pest or termite inspection and any clearance: $100 to $700 depending on findings.
- Specialized inspections: sewer lateral, roof, foundation, or other targeted inspections vary by property and location.
HOA and condo fees
- HOA resale or estoppel certificate: often $200 to $500+. In many cases the seller pays, but contracts can shift responsibility.
- Move-in fees or deposits: $0 to several hundred dollars, sometimes refundable.
Example buyer total on a $1,000,000 purchase
A typical buyer in Los Angeles might see $20,000 to $50,000 in closing costs on a $1,000,000 purchase. Your final number depends on your loan terms, prepaids, and which title or escrow items are split or negotiated.
Seller closing costs in Los Angeles
Commission
Real estate commissions are usually the largest seller expense. In Los Angeles, a total commission of about 5% to 6% of the sale price is common, typically shared between the listing and buyer’s agents. Commission rates are negotiable.
Title, escrow, and recording
- Owner’s title insurance policy: customarily paid by the seller in California. Premiums scale with price and are set by regulated schedules.
- Escrow fees: often split with the buyer. The total escrow fee is commonly $500 to $2,500 depending on price and company.
- Recording and reconveyance: $50 to $300 to record the release of your existing loan, plus any lender payoff processing fees.
Transfer taxes
Los Angeles County and many incorporated cities, including the City of Los Angeles, levy documentary transfer taxes. These are often the seller’s responsibility, though the contract can allocate them differently. Combined city and county amounts can be significant on higher-priced sales. Always verify current rates with the City of Los Angeles Office of Finance and Los Angeles County.
Prorations and payoffs
- Property taxes: sellers pay taxes up to the closing date based on the county calendar.
- Mortgage payoff: your outstanding loan balance is paid off at closing. There may be prepayment penalties or reconveyance fees depending on your loan.
- Home warranty: some sellers offer a warranty to buyers as an incentive. Plans often run $300 to $800.
HOA and resale documents
- HOA resale package or estoppel: typically $200 to $500 or more, depending on the association. This is often a seller expense when preparing disclosures.
- Association transfer or move fees: rules vary by HOA and can be negotiated in the contract.
Example seller total on a $1,000,000 sale
- Commission at about 5%: $50,000
- Owner’s title policy and seller’s escrow share: several thousand dollars
- City and county transfer taxes: several thousand dollars depending on location in Los Angeles County
- Mortgage payoff and prorated taxes: variable
All in, seller costs commonly total 6% to 10% of the sale price once commission and standard items are included.
Los Angeles items to watch
Mello-Roos and special assessments
Some neighborhoods have special taxes that fund infrastructure or services. These charges appear on the property tax bill and should be disclosed and prorated at sale. They can add meaningful monthly carrying costs, so review the preliminary title report and county tax records early.
Supplemental tax bills
When ownership changes or improvements are made, Los Angeles County may issue a supplemental tax bill that reflects a new assessed value. Buyers and sellers should ask escrow whether a supplemental bill is likely after closing.
Local inspections and compliance
Certain municipalities in the Los Angeles area require proof of sewer lateral condition or other compliance items before or at closing. Smoke and carbon monoxide detectors and other safety items are typical building-code requirements. Escrow and your agent will outline what is required for your property and city.
Condo move-in rules and deposits
Many LA high-rises and associations require scheduled move-ins, deposits, or elevator reservations. These fees can be refundable or nonrefundable and may affect your move timeline. Plan ahead to secure preferred dates and avoid rush charges.
How to estimate your numbers
- Ask your lender for a detailed Loan Estimate early. Compare it to your final Closing Disclosure and question any changes.
- Request an itemized quote from your chosen escrow and title company. Confirm how escrow fees are being split.
- Review the preliminary title report to identify liens, Mello-Roos, or assessment districts.
- For condos, request the HOA resale packet early to see dues, reserves, pending assessments, and any transfer or move-in fees.
- Confirm city and county transfer taxes for your property’s location within Los Angeles County. Contract terms can change who pays them.
- For sellers, request a net proceeds estimate from escrow early and update it once you accept an offer.
Smart ways to prepare
- Time your closing date thoughtfully. Prepaid interest and some prorations change with the calendar.
- Decide whether discount points make sense for your loan. Points increase closing costs but can lower your monthly payment.
- Order inspections early and budget for repairs or credits. Many sellers prefer giving credits instead of doing work prior to close.
- For condos, plan for HOA timing. Some associations need several business days to produce resale documents.
- Keep reserves for supplemental taxes and HOA deposits. These items can arrive after closing or be due upfront.
Quick checklists
Buyer checklist
- Review Loan Estimate and Closing Disclosure line by line
- Confirm lender points, origination, and third-party fees
- Price out title and escrow and confirm split of fees
- Budget for homeowners insurance, prepaid interest, and tax escrow
- Order home and pest inspections and consider additional specialty checks
- Ask about HOA move-in fees, dues prorations, and deposits
Seller checklist
- Review a preliminary net sheet with escrow
- Confirm commission, owner’s title policy, and escrow fee split
- Verify city and county transfer taxes for your property location
- Order HOA resale documents and clarify who pays related fees
- Plan for loan payoff, recording, and any prepayment penalties
- Decide whether to offer a home warranty as a buyer incentive
The bottom line
Closing costs in Los Angeles have moving parts, but they follow clear patterns. Buyers typically budget 2% to 5% of the purchase price, while sellers often plan for 6% to 10% including commission. Your exact number depends on loan choices, property type, location within Los Angeles County, HOA rules, and negotiated terms.
If you want a precise estimate and a plan to optimize your net, connect with a local advisor who understands the Westside, Beverly Hills, and Valley nuances. For tailored guidance and a smooth, concierge-level experience, reach out to Nikko Santo Pietro.
FAQs
Who pays the owner’s title insurance in Los Angeles?
- In California it is customary for the seller to pay for the owner’s title policy, while the buyer pays the lender’s policy, but this can be negotiated and local practice varies.
How much are escrow and title fees in Los Angeles?
- Escrow fees typically total $500 to $2,500 for the transaction and are often split, while title premiums scale with price and can run from hundreds to several thousand dollars.
Are Los Angeles documentary transfer taxes a buyer or seller cost?
- They are often paid by the seller in California, but responsibility is negotiable and should be confirmed in the purchase agreement and with escrow for your city.
What is usually the biggest closing cost in Los Angeles home sales?
- For sellers, the real estate commission, commonly about 5% to 6% of the sale price, is typically the largest item; for buyers, lender fees, title and escrow, and prepaids add up most.
Do HOA dues get prorated at closing in Los Angeles?
- Yes, HOA dues are prorated based on the closing date; buyers usually pay from the day after closing forward, and some associations also collect move-in deposits or reserves.
How much should a buyer budget for a $1,000,000 Los Angeles home?
- Plan for about $20,000 to $50,000 in closing costs, excluding the down payment; your total will vary with loan terms, prepaids, and negotiated credits.
