Who actually pays what at closing can feel confusing, especially in a city as dynamic as Long Beach. You want a clear picture before you write an offer or list your home, and you do not want surprises at the signing table. In this guide, you will learn who typically pays which fees in Southern California, what is negotiable, and the local factors in Long Beach and Los Angeles County that can change the numbers. Let’s dive in.
Closing costs, explained
Closing costs are the third‑party and administrative fees needed to transfer a home from seller to buyer and, when applicable, to fund a mortgage. They include title and escrow services, lender charges, inspections, recording, transfer taxes, and prorations for property taxes and HOA dues. In California, custom and your purchase agreement determine who pays which items. Many fees are negotiable.
As planning ranges, buyers commonly budget about 2% to 5% of the purchase price for closing costs, excluding the down payment. Sellers often plan for about 6% to 10% of the sale price once commissions and seller‑side closing items are included. Your exact numbers will depend on loan terms, title and escrow rates, local taxes, HOA fees, and negotiated credits.
Who pays what in Long Beach
Buyer’s typical responsibilities
- Lender charges. Application, underwriting, processing, and any loan origination points, often partly negotiable.
- Appraisal and credit report. Your lender usually requires these, and you pay the fees.
- Lender’s title insurance policy. Protects your lender’s interest. Cost ties to your loan amount.
- Escrow or settlement fees. Often split 50–50 in Southern California, but your contract can allocate differently.
- Recording fees tied to the new loan. Los Angeles County charges to record your deed of trust and related items.
- Homeowners insurance. First‑year premium is typically paid at closing.
- Prepaid and impound items. Property tax and insurance reserves, prorated interest, and any HOA dues for the period after closing.
- Title endorsements required by the lender. Common in financed purchases.
- Inspections. General home inspection, termite, sewer scope, or others you request.
- HOA document or transfer items you request. If you ask for rush delivery or extra documents, you may be assigned those costs.
Seller’s typical responsibilities
- Real estate commissions. The seller commonly pays the total commission to the listing brokerage, which then shares with the buyer’s brokerage per MLS. Combined rates are negotiated and often total about 5% to 6% of the sale price.
- Owner’s title insurance policy. Customarily paid by the seller in Southern California, though negotiable. This protects the buyer’s ownership interest.
- Escrow fees. Frequently split 50–50 by custom, but negotiable.
- Transfer or documentary transfer taxes if applicable. Local custom often assigns these to the seller, but the contract controls.
- Mortgage payoff and reconveyance. Any existing loans, plus reconveyance or release fees.
- Repairs or credits agreed during negotiations. Includes any termite or other work you agree to perform, or credits you offer.
- Prorated property taxes and HOA balances. You pay your share up to the closing date.
- HOA transfer items and unpaid dues or fines. Often seller‑paid, but negotiable.
- Home warranty if offered as a concession. Only if you agree to provide it.
What is negotiable
Many items can be assigned by contract. Common negotiables include:
- Who pays escrow fees and how they are split.
- Who pays the owner’s title insurance policy.
- Transfer taxes or documentary transfer taxes.
- Buyer closing cost credits. A seller may credit a portion of the buyer’s costs, subject to loan program limits.
- Repairs, pest work, and home warranties.
- HOA estoppel and transfer fees.
Your offer strategy can use these levers to strengthen terms or reduce cash needed at closing.
Long Beach factors that affect costs
Transfer and documentary transfer taxes
Cities and counties in California can levy transfer or documentary transfer taxes when property changes hands. Local custom often places these taxes on the seller, but it is negotiable and varies by jurisdiction. To confirm whether the City of Long Beach imposes a transfer tax and what the current rate is, check the city’s finance resources. Your escrow officer will calculate any applicable county or city amounts during escrow.
Recording fees and county charges
Los Angeles County charges fees to record deeds, deeds of trust, and related documents. These are modest fixed fees that change periodically. Buyers typically pay recording tied to the new loan, and sellers often cover recording of the grant deed, subject to your contract. Your escrow company will use the current county fee schedule.
Property taxes, prorations, and supplemental bills
Under Proposition 13, a change of ownership generally triggers reassessment. As the buyer, you should expect prorated ordinary taxes at closing and may receive a supplemental tax bill after reassessment. That supplemental bill is separate from your lender impounds and is not automatically prorated unless your contract and escrow handle it that way. Your escrow team will explain local handling.
Mello‑Roos and special assessments
Some communities have community facilities districts or other special assessments. These are recurring charges disclosed in the preliminary title and escrow package. If applicable, you assume them after purchase and should include them in your housing budget.
HOA resale packages and move fees
Condo and townhome associations often charge estoppel or transfer fees for providing resale documents and processing your move. In many California transactions the seller pays the estoppel fee, though practice varies and your contract should specify who pays. Some buildings also require move‑in deposits or elevator reservations.
Natural hazard disclosures and inspections
California requires statutory disclosures and natural hazard reports. Sellers typically pay for the standard disclosure package, while buyers usually cover the cost of any inspections or specialized testing they request. Coastal and fault zone proximity can require added disclosures; your professionals can guide you on what to order.
Local escrow and title practices
Escrow and title fees, and who pays them, can vary by company and neighborhood custom. Many Los Angeles County transactions split escrow fees, while the seller pays the owner’s title policy and the buyer pays the lender’s title policy. Always confirm your exact rate quotes with your escrow and title team.
How much to budget
- Buyers. Plan for 2% to 5% of the purchase price in closing costs, excluding your down payment. This range covers lender charges, title and escrow, appraisal, inspections, recording, and prepaids like taxes and insurance.
- Sellers. Plan for about 6% to 10% of the sale price, which typically includes commissions, title and escrow, transfer taxes if applicable, recording, and any negotiated credits or repairs.
Ask your lender for a written Loan Estimate early in your search. Request a preliminary fee quote or sample closing statement from your escrow and title company. If you are in an HOA or a special tax district, verify any association fees, estoppel charges, and ongoing assessments before you submit an offer or accept one.
Sample closing cost snapshot
The numbers below are for illustration only. Your actual costs will vary based on your agreement, loan, property type, and current fee schedules.
Assumptions: sale price $750,000, combined commission 5.5% paid by seller, owner’s title policy paid by seller, escrow fees split evenly, buyer obtains financing, no Mello‑Roos, and transfer taxes handled per local custom. Confirm all amounts with your escrow, title, and lender.
Seller example
- Sale price: $750,000
- Commission at 5.5%: $41,250
- Owner’s title insurance policy: example $2,000
- Seller share of escrow and title fees: example $1,200
- Mortgage payoff(s): insert actual balance and any interest to payoff
- Prorated property taxes and any HOA balances: calculated by escrow
- Documentary or city transfer tax: verify and insert if applicable
- Estimated seller closing costs excluding payoff and prorations: about $44,450 in this example
- Estimated seller net: $750,000 minus commissions and other seller costs, minus payoff and prorations
Buyer example
- Loan amount at 80% LTV: $600,000
- Down payment: $150,000 (not a closing cost but needed at funding)
- Loan origination or points at 1%: example $6,000
- Appraisal: example $600
- Lender’s title insurance policy: example $1,200
- Buyer share of escrow and title fees: example $1,200
- Recording fees for deed of trust: example $200
- Prepaids and impounds for taxes and insurance: example $3,000
- Inspections: example $500 to $1,000
- Estimated buyer closing costs excluding down payment: about $12,700 plus prepaids and inspections in this scenario
Use these structures to build a personalized net sheet with your agent and escrow team.
Ways to reduce or cover costs
For buyers
- Request a seller credit toward your closing costs within loan program limits. This can offset escrow, title, or lender fees.
- Compare lenders. Rates and lender fees vary, and points are optional. Ask for scenarios with and without points.
- Ask for title and escrow quotes. Companies publish rate schedules and can estimate endorsements and settlement fees.
- Prioritize inspections. Focus on the most informative inspections first so you do not pay for unnecessary add‑ons.
For sellers
Price and present well to minimize post‑inspection credits. Strong presentation can support cleaner negotiations.
Compare title and escrow fee splits when offers come in. Terms that cover more buyer costs may change your net.
Decide early on warranties and disclosure packages. Bundled services can be cost‑effective and help avoid delays.
How The Elmer Team supports you
You deserve a smooth, predictable closing with no surprises. As a Long Beach‑based team with two decades of local experience, we help you understand every line item before you sign. We coordinate with your lender, title, and escrow partners, verify local transfer taxes and HOA fees, and build a clear buyer estimate or seller net sheet so you can plan with confidence.
If your sale involves probate, divorce, or investment goals, our specialist training and process‑driven operations help you navigate the added steps and documentation. You stay informed, your deadlines are met, and your costs are transparent from contract to closing.
Ready to plan your next move in Long Beach? Reach out to The Elmer Team for a customized closing cost estimate and local guidance.
FAQs
Who pays closing costs in Long Beach home sales?
- Custom often assigns loan and inspection costs to buyers and commissions and the owner’s title policy to sellers, but many items are negotiable and your contract controls.
How much should a first‑time buyer in Long Beach save for closing?
- Plan for about 2% to 5% of the purchase price for closing costs, plus your down payment and initial reserves for taxes and insurance.
Can a seller pay my closing costs with an FHA, VA, or conventional loan?
- Yes, seller credits are common within program limits set by your loan type, and any credit reduces the seller’s net proceeds.
Who pays transfer taxes on a Long Beach sale?
- Local custom often places transfer or documentary transfer taxes on the seller, but it depends on city or county rules and your contract, so confirm with escrow.
What are supplemental property tax bills in Los Angeles County?
- After a change of ownership, your property may be reassessed and you may receive a supplemental tax bill in addition to regular taxes handled by impounds.
Who pays HOA estoppel and transfer fees for a Long Beach condo?
- Many associations charge these fees at resale; it is common for sellers to pay the estoppel fee, but practices vary and your contract should specify who pays.
