Are you trying to figure out who pays what at closing in Monterey County? You’re not alone. Whether you’re buying your first condo in Marina or selling a Carmel bungalow, closing costs can feel confusing. In this guide, you’ll learn what typical costs look like, who usually pays them in California practice, and how to estimate your cash to close or net proceeds with simple worksheets. Let’s dive in.
What closing costs cover in Monterey County
Closing costs are the fees and payments due when ownership changes hands. Some are tied to the loan, some to title and escrow, and some to local taxes and prorations.
Common categories include:
- Real estate commission
- Title insurance and escrow/settlement fees
- Recording and notary fees
- Documentary transfer tax
- Property tax prorations and special assessments
- HOA document, transfer, or move-in fees
- Lender-related fees, appraisal, and inspection costs
- Insurance, prepaid interest, and escrow reserves
Exact amounts vary by property, lender, and city. Many items are negotiable, so your purchase contract and escrow instructions control the final split.
Who pays what in California practice
Custom often guides who pays, but it remains negotiable. In many California transactions, you’ll see the following patterns:
Seller usually pays
- Real estate commission for both listing and buyer brokers
- Owner’s title insurance policy for the buyer
- HOA resale/estoppel documents if there is an HOA
- Natural hazard disclosure and standard seller disclosures
- Their share of escrow fees if split
- Documentary transfer tax in many areas
Buyer usually pays
- Lender’s title insurance policy if there is a loan
- Loan origination and underwriting fees, rate points if any
- Appraisal, credit report, and inspections
- Recording fees and notary services for the deed and mortgage
- Prepaid interest, homeowner’s insurance, and lender reserves
- Their share of escrow fees if split
Your contract can change these norms, and local custom may differ by city within Monterey County.
Monterey County specifics to check
Local details can shift your total more than you expect. Plan to verify the following with your escrow officer and lender:
- Transfer taxes. Counties and some cities charge a documentary transfer tax. Who pays is often seller by custom, but it is negotiable and jurisdiction-dependent. Confirm county and city amounts for the property’s location.
- Property tax prorations. California’s base property tax is about 1 percent of assessed value plus voter-approved bonds and special assessments. Special districts or Mello-Roos style charges can apply to certain neighborhoods and will be prorated at closing.
- HOA fees. Many condos and planned communities on the Monterey Peninsula have HOAs. Sellers commonly pay for required HOA resale documents, while transfer or move-in fees are set by the HOA and can be assigned to either party by contract.
- Escrow and title customs. Local escrow companies often split escrow fees between buyer and seller, and sellers typically pay for the owner’s title policy. Always confirm the fee schedule for your price point.
- Recording and county fees. Recording charges for the deed and mortgage and any reconveyances are set by the county. Your escrow officer will quote the current amounts.
Seller closing costs: typical ranges
While every sale is unique, here are common seller-side items to budget for:
- Real estate commission: commonly 5 to 6 percent of the sale price
- Owner’s title insurance premium: roughly 0.2 to 0.5 percent of sale price
- Escrow/settlement fee (seller share): often 800 to 2,000 dollars
- Documentary transfer tax: varies by county and city, often seller-paid by custom
- Property tax prorations: seller covers taxes for days owned up to closing
- HOA resale/estoppel docs if applicable: commonly 150 to 500 dollars, sometimes higher
- Repairs or credits: negotiated after inspections, can range from zero to several thousand
- Mortgage payoff and reconveyance fees: principal payoff plus any lender fees
These ranges help you plan, but rely on your escrow officer for a precise estimate tied to your address.
Buyer closing costs: typical ranges
Beyond your down payment, plan for these common buyer costs:
- Loan fees and points: about 0.5 to 1.5 percent of the loan amount
- Appraisal: about 450 to 1,200 dollars
- Lender’s title insurance and endorsements: required if you finance
- Escrow/settlement fee (buyer share): often 800 to 2,000 dollars
- Recording and notary: typically a few hundred dollars combined
- Prepaid items and reserves: initial deposits for taxes and insurance plus prepaid interest
- Inspections: general home inspection often 300 to 700 dollars, with septic, roof, or pest as needed
- HOA transfer or move-in fees if applicable: depends on the association
Your lender’s Loan Estimate and, later, Closing Disclosure will show exact figures.
Quick worksheets to estimate your numbers
Use these simple formulas to build a draft estimate with your agent, lender, or escrow officer.
Seller net proceeds formula
Seller net proceeds = Sale price
- (Commission percent × Sale price)
- Payoff of seller’s mortgage(s)
- Seller closing costs (owner’s title premium + seller share of escrow + transfer tax + reconveyance fees + any seller-paid credits)
- Prorated taxes owed through closing
- Repairs or agreed credits
Notes: Commission is usually the largest item. Transfer tax and title premiums are jurisdiction-specific, so confirm them early.
Buyer cash to close formula
Buyer cash to close = Down payment (Sale price − loan amount)
- Loan fees and points
- Lender/title/escrow fees paid by buyer
- Prepaids and reserves (taxes, insurance, interest)
- Inspections and HOA transfer if buyer pays
− Seller credits negotiated
This gives you a working estimate before you receive formal lender and escrow numbers.
Illustrative example: an $850,000 sale
The figures below are for illustration only. Your numbers will differ based on loan terms, city transfer taxes, and escrow/title schedules.
Use these as a framework, then plug in your actual quotes.
How to get exact local numbers
Because Monterey County has city-by-city differences and parcel-specific assessments, confirm your figures with the professionals who produce them:
- Escrow and title company for fee schedules, title premiums, and transfer tax calculations
- Your lender for the Loan Estimate and Closing Disclosure
- Monterey County offices for current recording fees and property tax details
- City finance offices where the property is located for any city transfer taxes
- HOA management for resale packet costs and any transfer or move-in fees
Starting these conversations early can prevent surprises and help you negotiate the split of costs with confidence.
Ready to run your numbers with a local expert and plan your next steps on the Peninsula? Reach out to The Finkle Team for clear estimates, smart strategy, and a smooth closing. Connect with Maria Finkle to get started.
FAQs
Who usually pays the documentary transfer tax in Monterey County?
- It depends on local ordinance and the purchase contract. Many California sellers pay it by custom, but confirm with your escrow officer for the property’s city and county.
Who pays for title insurance in a Monterey County home sale?
- Sellers commonly pay for the owner’s policy, and buyers pay for the lender’s policy if there is a loan. Your contract and local custom control the final assignment.
How are escrow fees typically split between buyer and seller?
- They are often split 50–50 in California, including many Monterey County transactions, though the split is negotiable.
How are property taxes prorated at closing in California?
- Taxes are prorated by day. The seller pays for the days they owned the property through closing, and the buyer pays starting the day after closing, including any parcel-specific assessments.
What should I know about HOA fees and documents on the Monterey Peninsula?
- Sellers usually order and pay for the HOA resale or estoppel package. Transfer or move-in fees vary by HOA and are assigned by contract.
How can a buyer quickly estimate cash to close?
- Start with the buyer formula in this article, then request a Loan Estimate from your lender. Your Closing Disclosure will provide final numbers at least three days before closing.
Are there any unusual local costs around coastal Monterey communities?
- Some coastal or resort areas have higher HOA dues and parcel-specific assessments. Older homes may also need additional inspections. Verify details for the specific property with escrow and your inspector.
