Are you trying to pin down who pays what at the closing table in El Segundo? You are not alone. When you are buying or selling in the South Bay, closing costs can feel complex, and they often change based on the contract and the market. In this guide, you will learn what closing costs cover, who typically pays in California, Los Angeles County items to watch, realistic ranges, and smart ways to keep more money in your pocket. Let’s dive in.
What closing costs cover
Closing costs are the one-time fees and prepaid items that come due when the property transfers. For buyers, these are in addition to your down payment. For sellers, these are in addition to broker commissions and any loan payoffs. Some items are fixed by third-party providers, and others are negotiable in your contract.
Typical categories include title insurance, escrow services, county recording, transfer taxes, lender fees, appraisals and inspections, prepaid taxes and insurance, and any agreed credits or repairs. Your escrow company will prepare a settlement statement so you can review every line item before you sign.
Who pays what in El Segundo
In California and Southern California, many costs follow local custom, but your purchase agreement controls the final outcome. Here is what is common in our area.
Buyer’s typical costs
- Lender fees such as application, underwriting, points when applicable.
- Appraisal and credit report.
- Lender’s title insurance policy when financing.
- Buyer’s share of escrow fees. In many South Bay deals, escrow fees are split.
- Recording fees tied to the new mortgage and, in some cases, the deed.
- Prepaid items: homeowner’s insurance, prorated property taxes, prepaid interest, and any HOA prepaids.
- Inspections you order, like home and pest inspections, plus any inspections you choose to add.
Seller’s typical costs
- Real estate broker commissions. This is often the largest single cost and is negotiable.
- Owner’s title insurance policy premium. It is customary in California for the seller to pay for the owner’s policy.
- Documentary transfer tax at the county level, and any city transfer tax if one applies.
- Seller’s share of escrow fees if split per custom or contract.
- Payoff of existing mortgages and liens.
- Prorated property taxes and HOA dues up to the closing date.
- Any agreed credits, repairs, home warranty, or HOA transfer fees if negotiated.
Local LA County items to watch
El Segundo is in Los Angeles County, and a few county-level items can shape your final numbers. It pays to confirm these early with your escrow officer and title company.
Transfer taxes in LA County and El Segundo
Los Angeles County charges a documentary transfer tax on most property sales. It is typically paid by the seller per local custom. Some cities within the county also add their own city transfer tax. Confirm with escrow whether the City of El Segundo imposes any city transfer tax for your property so you can plan the correct amount.
Recording and title-related fees
The Los Angeles County Registrar-Recorder sets recording fees for deeds and mortgages. These vary by document type and pages. Title insurance premiums are set by rate schedules and scale with price. In California, sellers customarily pay the owner’s policy while buyers pay the lender’s policy if they have a loan.
Property tax proration and supplemental bills
California’s property tax year runs July 1 to June 30, with two installments commonly due in the fall and winter. At closing, taxes are prorated between buyer and seller. After a sale, Los Angeles County can issue a supplemental assessment that reflects the new ownership and price. You should plan for a possible supplemental tax bill after closing.
Special assessments and Mello-Roos
Some properties carry special assessments, including Mello-Roos or other district charges. These will appear on the tax bill and in the preliminary title report. Review them early so there are no surprises in your monthly budget or at closing.
How much you might pay
Every transaction is different, but broad ranges help you estimate.
- Buyers commonly pay about 2 percent to 5 percent of the purchase price in closing costs. This excludes the down payment. A cash buyer will usually pay less because there are no loan-related fees.
- Sellers commonly pay about 6 percent to 10 percent of the sale price once broker commissions are included. Commission is typically the largest line item and is negotiable.
Here is a simple illustration, not a quote. On a 1,000,000 dollar sale, a seller might pay a total commission in the 5 percent to 6 percent range, the owner’s title policy, the county transfer tax, a share of escrow, plus prorated taxes and any loan payoff. Buyers on the same deal might pay lender fees, the appraisal, the lender’s title policy, a share of escrow, recording, and prepaids. Your exact figures will depend on your contract, loan type, and provider estimates.
Timeline and disclosures to expect
Federal loan rules protect you with clear cost disclosures and time to review.
- Within 3 business days after you apply for a mortgage, your lender must provide a Loan Estimate. This outlines projected loan costs and closing costs so you can compare lenders.
- At least 3 business days before closing, your lender must provide a Closing Disclosure with your final loan terms and closing costs. Compare it to your Loan Estimate and ask questions.
- The escrow company will also provide a settlement statement that shows every dollar in and out for both sides. Review it carefully and request clarifications before you sign.
If major loan terms change late in the process, a new Closing Disclosure and waiting period may be required. Build in time for this so your move stays on track.
Ways buyers can save
- Compare lenders and their Loan Estimates. Even small differences in fees and rate can add up.
- Ask for seller credits toward closing costs if the market and your loan program allow it.
- Confirm which fees are split with the seller and whether the seller will cover certain items.
- Evaluate mortgage points based on how long you plan to hold the loan.
Ways sellers can save
- Request a detailed seller net sheet early so you understand your likely proceeds.
- Shop escrow and title fee quotes through your agent and escrow officer.
- Complete disclosures and inspections early to reduce last-minute credits or delays.
- Offer targeted concessions. A credit toward buyer closing costs can sometimes be more efficient than a price reduction.
Quick checklist for El Segundo closings
Buyers
- Ask at least two lenders for Loan Estimates and compare line by line.
- Review the preliminary title report and HOA documents as soon as available.
- Confirm whether any city transfer tax applies for your El Segundo address.
- Request a draft settlement statement a few days before closing and verify prepaids and prorations.
- Plan for possible supplemental property taxes after closing.
Sellers
- Order written payoff statements for all loans and liens early.
- Confirm that you will pay the owner’s title policy, per California custom, and get a premium estimate.
- Verify Los Angeles County documentary transfer tax for your sale and ask escrow about any city tax.
- Gather HOA transfer and disclosure documents and budget for any related fees.
- Review a seller net sheet and update it as offers and terms change.
What to review with your advisor
- Who pays each fee in your specific contract, including escrow and title.
- Whether any special assessments or HOA fees affect your net or your payments.
- The timing of your Closing Disclosure and whether any changes could push your closing date.
- Strategies to use credits or price to meet your financial goals.
Working with a South Bay-focused advisor helps you interpret local customs, avoid avoidable fees, and line up accurate quotes from escrow, title, and your lender early. The result is a smoother closing and fewer surprises on the day you sign.
Ready to get clear on your numbers and plan your next move in El Segundo? Connect with the Davidson Group for a tailored closing cost review and local strategy.
FAQs
What are typical buyer closing costs in El Segundo?
- Buyers commonly pay about 2 percent to 5 percent of the purchase price, excluding the down payment, with exact amounts set by your loan, price, and negotiated terms.
What are typical seller closing costs in El Segundo?
- Sellers commonly pay about 6 percent to 10 percent of the sale price when commissions are included, plus transfer tax, title, escrow share, prorations, and any loan payoff.
Who pays for title insurance in California closings?
- It is customary for the seller to pay the owner’s title insurance policy while the buyer pays the lender’s policy if financing, subject to your purchase agreement.
Does El Segundo have a city transfer tax?
- Los Angeles County charges a documentary transfer tax, and some cities add their own tax, so confirm with escrow whether the City of El Segundo applies a city transfer tax.
What is the Closing Disclosure and when do I get it?
- Your lender must provide a Closing Disclosure at least 3 business days before closing, detailing your final loan terms and closing costs so you can review and ask questions.
Will I receive a supplemental property tax bill after closing?
- You may receive a supplemental assessment after a sale in Los Angeles County, so plan for a possible additional tax bill that reflects the new ownership and price.
