In a previous blog, we discussed closing costs in California real property sales, including the use of “custom” in the allocation of those costs between buyer and seller. In many – perhaps most – cases, the largest single component of closing costs are the City and County transfer taxes. These costs are frequently substantial, and should not be overlooked when writing the purchase contract.
The California Local Governmental Finance Almanac provides visitors to its website with a handy-to-use chart listing City and County transfer tax rates for the entire State of California, grouped by County. With some simple arithmetic, one can quickly realize how significant the allocation of transfer taxes can be to a buyer and seller, Statewide.
Scott M. Toussaint, Real Estate Group