What a Valley Seller Pays at Closing
Closing costs for a seller fall into three groups. The first is fixed by law: documentary transfer taxes, which depend only on the sale price and the city the home sits in. The second is customary but negotiable: agent compensation, escrow fees, the owner's title insurance policy and HOA charges. The third depends on your situation: your loan payoff, prorated property taxes, repair credits you agree to, and any tax due on your gain.
Every one of these comes out of your sale proceeds through escrow, so you rarely write a check. What matters is your net, the amount left after all of it. Before you list, ask for a written net sheet built from real quotes rather than a single percentage.
Costs the seller usually covers in Los Angeles County
- County documentary transfer tax, and the City of Los Angeles transfer tax where it applies
- Owner's title insurance policy for the buyer (customary in LA County, but negotiable)
- The seller's share of the escrow fee
- Agent compensation you agree to in the listing agreement
- The City of Los Angeles Report of Residential Building Records, called the 9A report
- Natural Hazard Disclosure report
- Loan payoff, reconveyance and any prepayment or demand fees from your lender
- HOA transfer and document fees for condos and townhomes
- Repair credits or concessions negotiated after inspections
Transfer Tax
Transfer Tax in Each Valley Neighborhood
All nine neighborhoods covered on this site are part of the City of Los Angeles, so a sale pays two taxes. Los Angeles County charges $1.10 per $1,000 of the sale price ($0.55 per $500). The City of Los Angeles adds $4.50 per $1,000 ($2.25 per $500). Together that is about 0.56% of the price.
The table below applies those rates to the current median or typical value in each neighborhood. Your number will scale with your own price.
| Neighborhood | Price used | Basis | County + City tax |
|---|---|---|---|
| Studio City | $1,780,000 | Median sale | $9,968 |
| Encino | $1,720,000 | Median sale | $9,632 |
| Toluca Lake | $1,440,000 | Typical value | $8,064 |
| Sherman Oaks | $1,410,000 | Median sale | $7,896 |
| Valley Village | $1,250,000 | Typical value | $7,000 |
| Woodland Hills | $1,190,000 | Median sale | $6,664 |
| Tarzana | $1,050,000 | Median sale | $5,880 |
| Valley Glen | $984,000 | Typical value | $5,510 |
| North Hollywood | $890,000 | Median sale | $4,984 |
Median sale prices are fall 2026 figures from Resideline. Typical values for Toluca Lake, Valley Village and Valley Glen are 2026 Zillow Home Value Index figures. Tax is figured on the full price in $500 increments as the County Recorder calculates it.
A note on Toluca Lake and Burbank
Part of the area people call Toluca Lake sits inside the City of Burbank. A Burbank address pays the county tax of $1.10 per $1,000 but not the City of Los Angeles tax or Measure ULA. Check the city on your property tax bill before you estimate.
Measure ULA
The Extra Tax on Higher Priced Sales
Measure ULA is a City of Los Angeles tax added on top of the regular transfer tax. It is charged on the full price, not just the portion above the threshold. For sales that close after June 30, 2026, the rates are:
- 4% of the sale price for sales above roughly $5.4 million
- 5.5% of the sale price for sales of roughly $10.9 million and above
On a $5,500,000 Encino or Studio City sale, ULA alone is $220,000, on top of the regular $30,800 in county and city transfer tax. The thresholds are adjusted every July 1, so a home priced near the line deserves a careful look at both price and closing date. Very few Valley sales reach these levels, but hillside estates in Encino, Studio City, Sherman Oaks and Tarzana sometimes do.
Everything Else
Escrow, Title, Reports and the Rest
Agent compensation
This is usually the largest cost and it is negotiable. Since the 2024 NAR settlement, compensation offers to buyer agents can no longer be advertised on the MLS, and buyers must sign a written agreement with their own agent before touring homes. Sellers can still choose to pay part or all of a buyer agent's fee, and many do because it widens the pool of buyers who can afford to make an offer. Settle this in writing when you sign your listing agreement.
Escrow and title
In Los Angeles County, the buyer and seller typically split the escrow fee, and the seller customarily pays for the owner's title insurance policy that protects the buyer. Both are based on the price and vary by company, so request written quotes. Either custom can be changed in the purchase contract.
City of Los Angeles 9A report
Before a home in the City of Los Angeles changes hands, the seller must order a Report of Residential Building Records from the Department of Building and Safety and give it to the buyer. It lists the permits and certificates on file, along with the approved use and number of units. Order it early. If it shows a room or unit that was never permitted, you want to know before a buyer does.
Disclosures and compliance items
California sellers provide a Transfer Disclosure Statement and, when an agent is involved, a Seller Property Questionnaire, plus a Natural Hazard Disclosure report that shows whether the home is in a flood, fire or earthquake fault zone. Much of the hillside south of Ventura Boulevard falls in a very high fire hazard severity zone, which can also affect a buyer's insurance. Sellers must also confirm smoke and carbon monoxide detectors are installed and the water heater is braced. These items are inexpensive but they hold up escrow if they are missed.
Prorations and payoffs
Property taxes are split between buyer and seller as of the closing date, so you may receive a credit or owe a charge depending on what you have already paid. Your mortgage payoff, including interest through the payoff date, comes straight out of the proceeds. Condo and townhome owners should expect HOA transfer and document fees and should order HOA documents as soon as the home is listed, since associations can take a week or more to respond.
Repairs and credits
After inspections, many Valley buyers ask for repairs or a credit. Older homes in Valley Glen, North Hollywood and Valley Village often raise questions about sewer lines, electrical panels and foundations. Hillside homes may raise drainage or retaining wall questions. A pre-listing inspection costs a few hundred dollars and lets you price these issues in rather than negotiate them under a deadline.
Taxes on the Gain
Capital Gains and California Withholding
If you owned and lived in the home as your primary residence for at least two of the five years before the sale, you can generally exclude up to $250,000 of gain, or $500,000 for a married couple filing jointly. Long time Valley owners often have gains above those amounts, and the excess is taxed at both the federal and state level.
California also requires escrow to withhold 3 1/3% of the sale price for state income tax unless the seller qualifies for an exemption, such as selling a principal residence or selling at a loss. Foreign sellers face separate federal withholding under FIRPTA. Inherited homes, trusts and rental properties follow different rules. A short meeting with a tax professional before you list is worth the time.
Common Questions
Seller Closing Cost Questions
Who pays closing costs when selling a house in Los Angeles?
Both sides pay their own closing costs. In Los Angeles County the seller customarily pays the county and City of Los Angeles documentary transfer taxes, the owner's title insurance policy, their share of escrow fees, any agent compensation they agree to, and required reports such as the City of LA 9A report. Most of these items are negotiable in the purchase contract.
How much is the transfer tax on a home sale in the San Fernando Valley?
Neighborhoods such as Sherman Oaks, Studio City, Encino, Tarzana, Woodland Hills, North Hollywood, Valley Village and Valley Glen are inside the City of Los Angeles, so a sale pays the county tax of $1.10 per $1,000 plus the city tax of $4.50 per $1,000, about 0.56% of the price combined. On a $1,400,000 sale that is $7,840. Sales above the Measure ULA threshold pay an additional city tax.
What is Measure ULA and does it apply to my sale?
Measure ULA is a City of Los Angeles transfer tax on higher priced sales. For sales closing after June 30, 2026, it is 4% of the full sale price above roughly $5.4 million and 5.5% at roughly $10.9 million and above. The thresholds are adjusted every July 1, so check the current figures with the City of Los Angeles before you price a high end property.
Is commission included in seller closing costs?
Agent compensation is usually the largest single cost, and it is fully negotiable. Since the 2024 NAR settlement, offers of compensation to buyer agents can no longer be posted on the MLS and buyers must sign a written agreement with their own agent. A seller can still agree to pay some or all of a buyer agent's fee, and that decision is part of the listing conversation.
Do I pay capital gains tax when I sell my home in California?
If you owned and lived in the home as your primary residence for at least two of the last five years, you can usually exclude up to $250,000 of gain if single or $500,000 if married filing jointly. Gain above that is taxed at the federal and California level. Talk to a tax professional before you sell.
This guide is general information, not legal or tax advice. Rates and rules change; confirm current figures with escrow, the County Recorder and your tax advisor before you rely on them.