Sean Aujla & Associates - Your Trusted Real Esate Partner

When selling your home, there are several costs you’ll likely be responsible for. Below is a breakdown of the most common ones for a residential sale of a SFD - Single Family Home + role of Escrow . . .

• Typically around 5% of the sale price.
• Split between the Listing Agent & Buyer’s Agent.

• Repairs: Depends on service required & provider. 
• Staging: Depends on provider, size of property and materials installed. 
• Pre-sale inspection: Usually recommended to analyze the current condition of your property, including any repairs, deficiencies, or possible upgrades.

Around 1% of the sale price, typically split between Buyer & Seller, this usually includes Escrow & Recording fees. 

1.  Collects, Holds & Distributes Funds Securely, as a Neutral 3rd Party

Escrow collects any required funds from the Buyer, Lender & Seller, then distributes accordingly to the specified conditions, to all parties involved, normally once the applicable conditions have been met. 

2. Handles Payoff of your Mortgage, if required

Escrow ensures any existing mortgage (or other liens) are paid off / discharged, typically from the sale proceeds, unless otherwise instructed. 

3. Prepares and manages documents

Includes settlement statements, deed transfer, and recording documents etc. 

4. Coordinates with all parties

Works with the Seller, Buyer, Lenders, Title Company, Insurance and Real Estate Agents etc. to ensure all conditions are met.

5. Prorates expenses

Escrow calculates your share of property taxes, HOA dues & utilities etc., up to the sale date, then normally facilitates payoff of any outstanding liabilities. 

6. Distributes proceeds

After all conditions have been met, minus associated fees, taxes, and payoffs etc., escrow will release the remaining sale proceeds to you.

For more complex sales, such as trusts, estates, large commercial properties, or unusual contract terms etc., a Real Estate lawyer is advisable as Escrow companies are unable to offer Legal Advice, unless in-house legal counsel is available. 

In California, many companies act as both escrow and title company.  If the Title Company is separate, normal duties usually include: 

1. Check the property’s title – ensuring you legally own it and there are no liens or claims.

2. Issue a new title insurance policy for any Lender involved + the new Owner's policy. This type of coverage provides protection against any possible title issues that were not identified or cleared during the sale process, and continues once the home is sold.

3. Prepares legal documents such as deeds, affidavits, and settlement papers etc.

4. Coordinates with escrow – ensuring funds and ownership transfer correctly.

5. Record the deed – officially registers the new owner with the county.

Cost & Who Pays? The Buyer almost always pays for the Lender's side, and the Owner's policy is covered by either the Seller, Buyer or both, depending on what is negotiated, or customary for the area.  In SoCal the Seller typically pays for the new owner's policy and the fee is normally collected through escrow at closing, then paid to the title company involved. 

Typical cost is around $500-$3000, however, depends on property specifics + area & location.  Here is a basic $ Title Insurance cost calculator by State:

https://www.oldrepublictitle.com/rate-calculator

• In Los Angeles County, the base documentary transfer tax is $1.10 per $1,000 of value, which is equivalent to 0.11 %. 

If your property is in the City of LA, then there is an additional city transfer tax on top of the county rate:

• The standard city transfer tax in LA is $4.50 per $1,000, which is 0.45 %.

So, for a typical property under $5,000,000 in the City of LA, the combined rate is:

0.11 % (County) + 0.45 % (City) = 0.56 % total.

For high-value property transfers (within City of Los Angeles), there’s an extra tax under Measure ULA that kicks in above certain thresholds:

• For property sales above ~$5,000,000 up to ~$10,000,000, an additional 4.00 % tax applies on top of the base.
• For sales $10,000,000 or more, the additional rate is 5.50 % on the total sale amount.
• Because that extra tax is on top, the effective combined rate for a very high-value property in the City of LA can be 6 %+ (or more, depending on the bracket).

• Capital Gains Tax (if applicable).
• Any judgments, tax liens, or delinquent taxes recorded against the property or seller.
• Property tax proration (up to the transfer date, you could either owe the Buyer, or they may be required to credit you).
• Any bonds or assessments (depending on contract).

• Unpaid HOA dues must be cleared.
• HOA move-out fees (mostly for condos).
• HOA document fees (charged for providing required resale docs).

1. Natural Hazard Zone Disclosure Statement: 

Informs buyers if the property is in designated hazard zones (flood, fire, earthquake fault, etc.).

Cost: Usually $75–$150.

Who pays: Seller is responsible & it’s a legal requirement in California for most residential sales.

2. City Report of Residential Record, if required: 

Informs the Buyer about the property’s legal status, permits, and code    compliance etc. Normal cost around $50-$200. 

3. Energy/Water Conservation & other Compliance Work (per local laws).

Ensures the property meets local building and environmental standards (e.g., solar water heating, energy efficiency, water-saving fixtures).

Cost: Can range from $100–$1,000+, depending on the required work or inspection.

Who pays: Usually Seller, because compliance is typically required before closing.

• Home Warranty for Buyer (sometimes offered as an incentive, cost will vary by property + provider).
• Notary & courier fees.
• Other miscellaneous charges depending on the property and contract.

✅ Summary: Sellers generally cover commissions, transfer taxes, owner's title insurance, loan payoff, unpaid property obligations, and certain closing/disclosure fees. Costs vary depending on location, property type, and contract negotiations.

Disclosure: The posted info should be utilized as a basic guide only.  Please consult with a licensed business professional to confirm accuracy, plus any additional steps required, tailored to your scenario. In addition, all content provided is deemed current, however, subject to change with any adjustment of organizational or governing policies.