Closing costs are one of the most confusing parts of buying or selling a home. You hear about escrow fees, title insurance, transfer taxes, and prepaids, but no one tells you who pays what or how much to budget. If you are moving in or out of Santa Clarita, a clear plan can save stress and money.
In this guide, you will learn what closing costs include, who typically pays each item in Southern California, how much to set aside, and how to get an accurate estimate for your situation. You will also see local considerations for Santa Clarita and Los Angeles County. Let’s dive in.
What closing costs cover
Closing costs are the one-time expenses needed to complete a property transfer. They are separate from your down payment if you are buying and separate from commissions if you are selling.
Common line items include:
- Escrow or closing fees
- Title insurance and title-related fees
- Recording fees and documentary transfer taxes
- Lender fees and loan-related costs
- Prepaid items and prorations
- HOA-related fees, if applicable
- Special assessments, such as Mello-Roos or Community Facilities Districts (CFDs)
Most items are negotiable in California, and local practice in Southern California guides who typically pays. Your purchase agreement and escrow instructions finalize the allocation.
Who pays what in Santa Clarita
Customs can vary by deal, but the following reflects typical Southern California practice. Always confirm with your agent and the title or escrow company handling your file.
Escrow or closing fees
- What it is: The fee the escrow company charges to manage funds, documents, and the closing timeline.
- Who usually pays: Often split 50/50 between buyer and seller in many Southern California transactions.
- Budget note: Total escrow fees for both parties commonly range from a few hundred to a couple thousand dollars, based on price and the company’s fee schedule.
Title insurance and related title fees
- What it is: Insurance that protects against covered title defects, plus the title search and endorsements.
- Who usually pays: Sellers commonly pay for the owner’s title policy in much of Southern California. Buyers typically pay for the lender’s policy if they have a mortgage.
- Budget note: Title premiums are one-time and tied to sale price. Expect less than 1 percent of price for the total title policy cost, then request a quote for accuracy.
Recording fees and documentary transfer taxes
- What it is: County recording fees for the deed and mortgage, and transfer taxes charged on the property transfer.
- Who usually pays: Buyers often cover mortgage recording. In many California markets, sellers typically pay documentary transfer taxes, but this can be negotiated.
- Local note: Los Angeles County charges a documentary transfer tax. Some cities add their own transfer tax. Confirm whether your property is within the City of Santa Clarita or another jurisdiction and verify current rates with the title or escrow company.
Lender fees and loan-related costs
- What it is: Origination, underwriting, appraisal, credit report, and any required mortgage insurance.
- Who usually pays: The buyer, unless the seller provides a closing credit.
- Budget note: Lender and third-party loan costs often total from several hundred to a few thousand dollars. Your lender’s Loan Estimate will show line-by-line figures.
Prepaid items and prorations
- What it is: Prepaid homeowners insurance, prepaid interest, prorated property taxes and HOA dues based on the closing date.
- Who usually pays: Buyers fund lender-required prepaids. Tax and HOA prorations are shared between buyer and seller according to the closing date.
- Local note: California’s base property tax is often around 1 percent of assessed value plus local assessments. Actual totals vary by parcel and any special assessments.
HOA fees
- What it is: HOA document packages, transfer or estoppel fees, and prorated dues.
- Who usually pays: Varies by HOA and contract. Sellers sometimes pay transfer or estoppel fees, but check the association’s policy and your agreement.
- Timing tip: Request HOA fees and document timelines early so they do not delay closing.
Special assessments and Mello-Roos/CFDs
- What it is: Special taxes that fund local infrastructure or facilities in certain districts.
- Who usually pays: Ongoing special taxes become the buyer’s responsibility after closing. Any unpaid amounts may be prorated at closing, depending on timing and the contract.
- Local note: Some newer Santa Clarita communities fall within CFDs. Confirm details in the preliminary title report and the property tax bill.
Seller costs beyond closing items
- What it is: Real estate commissions, seller credits, payoff of existing loans, reconveyance fees, and potential tax implications.
- Who usually pays: The seller pays commissions and their loan payoffs unless otherwise agreed.
- Budget note: Combined real estate commissions commonly total about 5 to 6 percent of the sale price, separate from typical seller closing costs.
How much to budget
You can use simple percentage ranges to plan before you have quotes. Then replace the placeholder numbers with actual estimates from your lender, escrow, title, and HOA.
Rule of thumb for buyers
- Plan for about 2 to 5 percent of the purchase price in closing costs, not including your down payment.
- This range covers lender fees, your share of escrow and title costs, recording, prepaids, and prorations.
Rule of thumb for sellers
- Plan for about 1 to 3 percent of the sale price in typical closing costs, not including commissions.
- Add real estate commissions, any agreed credits, and your loan payoff to estimate net proceeds.
Sample scenarios to frame expectations
These estimates are for planning only. Your actual numbers will depend on price, financing, HOA or CFD status, and negotiated terms.
Example A: Purchase price $600,000
- Buyer closing costs: about $12,000 to $30,000
- Seller closing costs: about $6,000 to $18,000, plus commissions
Example B: Purchase price $900,000
- Buyer closing costs: about $18,000 to $45,000
- Seller closing costs: about $9,000 to $27,000, plus commissions
How to estimate your numbers
You can turn broad ranges into a near-final budget with a few targeted requests.
- Ask for official estimates early
- Buyers: Request a Loan Estimate from your lender and a title and escrow fee quote from the chosen companies.
- Sellers: Request a Seller’s Net Sheet from your listing agent and a preliminary closing cost estimate from the title or escrow company.
- Gather key documents
- Preliminary title report to confirm title fees, HOA info, and any CFD or Mello-Roos.
- Recent property tax bill to confirm base tax and special assessments.
- HOA resale package and any transfer or estoppel fees.
- Payoff demand for any seller loans.
- Confirm local taxes and recording
- Ask the title or escrow company to confirm Los Angeles County transfer tax and whether any city transfer tax applies for your property’s jurisdiction.
- Request the county recording fee schedule for deed and mortgage documents.
- Replace estimates with quotes
- Update your worksheet with the title premium, escrow fee schedule, lender fees, and exact prorations based on your closing date.
Santa Clarita tips and watchouts
A few local considerations can influence your final numbers and your timeline.
- Transfer taxes: Los Angeles County charges a documentary transfer tax. Some cities add a separate city-level transfer tax. Confirm which taxes apply to your specific address.
- Mello-Roos/CFDs: Several newer Santa Clarita neighborhoods may carry special taxes. Verify in the preliminary title report and property tax bill, and plan for prorations at closing.
- HOA timelines: HOA document delivery and estoppel letters can be time sensitive. Request them early to avoid closing delays and to confirm any transfer fees.
- Property tax base: Under California rules, base property tax is typically around 1 percent of assessed value plus local assessments. Buyers should be ready for potential supplemental assessments after closing when the property is reassessed.
Ways to lower or control closing costs
You can often improve your bottom line with strategy and timing.
- Ask for credits: Buyers can negotiate a seller credit to offset allowable closing costs. Sellers can offer targeted credits to keep buyer demand strong.
- Compare lenders: Lender fees and rates vary. Use the Loan Estimate to compare and ask questions about any fee that confuses you.
- Check title and escrow options: Fee schedules differ among providers. Your agent can request quotes so you can choose with clarity.
- Time your closing date: Closing near month end can reduce a buyer’s prepaid interest. Ask your lender to model the difference.
- Review HOA and special assessments early: Knowing exact fees helps you negotiate and budget with confidence.
First-time and VA buyer notes
If you are buying your first home or using VA financing, the best first step is to request your Loan Estimate and a title and escrow fee quote. Then build your budget line by line. Many items are negotiable in California, and sellers can contribute credits. Your lender and escrow team will confirm what is allowed for your loan type and how credits can be applied.
Ready to make a Santa Clarita move with clarity and confidence? Reach out to the local team that teaches first and guides every step. Schedule your consultation with Premier Real Estate Partners.
FAQs
What are typical buyer closing costs in Santa Clarita?
- Buyers generally budget 2 to 5 percent of the purchase price for closing costs, which include lender fees, escrow and title, recording, prepaids, and prorations.
What are typical seller closing costs in Santa Clarita?
- Sellers typically plan for 1 to 3 percent of the sale price for closing-related items, plus real estate commissions and any loan payoff.
Who pays for title insurance in Southern California?
- Sellers commonly pay for the owner’s title policy, while buyers usually pay for the lender’s policy if they are financing the purchase.
Do sellers pay the documentary transfer tax in Los Angeles County?
- In many California markets sellers pay documentary transfer taxes, though payment can be negotiated; confirm for the property’s jurisdiction with the title or escrow company.
How do I find out if a home has Mello-Roos or a CFD?
- Check the preliminary title report and the property tax bill, and review seller disclosures; these documents identify any special assessments and annual amounts.
When will I know my final closing costs as a buyer?
- Your lender must provide a Loan Estimate shortly after you apply and a final Closing Disclosure at least three business days before closing; escrow provides a closing statement near signing.
