Who Pays What in Northern California Real Estate Transactions?

Section 4 of the standard California Association of Realtor contract for the purchase of residential property is called "Allocation of Costs." It deals with whether the buyer or the seller pay for termite inspection, home inspection, smoke detector installation etc. The most costly items which seller and buyer negotiate are

-- Recording fees

-- Title insurance

-- Escrow Fees

-- County and City transfer tax.

Anything can be negotiated and becomes binding on the parties who sign the contract; however, there are certain customs which differ from county to county as to who pays what.

Tip! Leverage. You can borrow money to buy real estate, whereas, generally you can not borrow money to buy stocks.

The following list gives an overview about counties in and close to the Bay Area and the customary allocation of certain costs.

When your Real Estate Agent writes your purchase contract, make sure he marked the right check boxes.

In a buyer's market, buyers need not stick to customs but can ask for more. Many sellers cannot pay the higher interest rates and are happy to get out of a property, even if it means that they pay costs they would not have paid two years ago.

Alameda Recording Fees: Buyer Title Insurance: Buyer Escrow Fees: Buyer County Transfer Tax: Seller City Transfer Tax: Split

Contra Costa Recording Fees: Buyer Title Insurance: Buyer Escrow Fees: Buyer County Transfer Tax: Seller City Transfer Tax: Negotiable

Marin Recording Fees: Buyer Title Insurance: Buyer Escrow Fees: Buyer County Transfer Tax: Seller City Transfer Tax: Seller

Napa Recording Fees: Buyer Title Insurance: Buyer Escrow Fees: Buyer County Transfer Tax: Seller City Transfer Tax:

Sacramento Recording Fees: Buyer Title Insurance: Seller Escrow Fees: Seller or Split County Transfer Tax: Seller City Transfer Tax: Split

San Francisco Recording Fees: Buyer Title Insurance: Buyer Escrow Fees: Buyer County Transfer Tax: Seller City Transfer Tax:

San Mateo Recording Fees: Buyer Title Insurance: Buyer Escrow Fees: Buyer County Transfer Tax: Seller City Transfer Tax: Seller or Split

Santa Clara Recording Fees: Buyer Title Insurance: Seller Escrow Fees: Seller County Transfer Tax: Seller City Transfer Tax: Seller or Split

Solano Recording Fees: Buyer Title Insurance: Buyer Escrow Fees: Buyer County Transfer Tax: Seller City Transfer Tax: Seller

Sonoma Recording Fees: Buyer Title Insurance: Buyer Escrow Fees: Buyer County Transfer Tax: Seller City Transfer Tax: Seller

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Yolo Recording Fees: Seller Title Insurance: Seller Escrow Fees: Seller County Transfer Tax: Seller City Transfer Tax: Seller

Useful links: http://www.car.org

Nicolai Nielsen is an MBA and a broker in California.