Who Pays for Title and Escrow Fees in California?

When buying or selling a home in California, one of the most common questions is: Who pays for title and escrow fees?
The answer matters—not only because it affects your bottom line, but because it helps you negotiate confidently and understand what to expect at closing.

Let’s break it down in a simple, practical way.

Title Fees: Who Usually Pays?

In California, who pays for title insurance depends on the county, and local customs play a big role. Here’s the general rule of thumb:

• Seller typically pays for the owner’s title insurance policy.
  This policy protects the buyer from any issues with ownership rights that may arise after closing.
• Buyer typically pays for the lender’s title insurance policy.
  If the buyer is financing the purchase, the lender requires this policy to protect their interest in the property.

But remember:
These aren’t hard rules—everything is negotiable. Some counties have strong traditions, while others are more flexible.

Escrow Fees: Who Usually Pays?

Escrow fees in California are often split 50/50 between buyer and seller.
Escrow is the neutral third party that handles the paperwork, funds, and legal documents to ensure a smooth and fair closing.

However:

• In Southern California, it’s more common for each side to pay their own escrow fees.
• In Northern California, customs vary widely by county—some split the fees evenly, others lean one direction.

Again, negotiation can shift who pays what, especially in a competitive market.

County Customs (Quick Snapshot)

While every transaction is unique, here’s a general look at typical customs:

• Southern California:
  • Seller: Owner’s title policy
  • Buyer: Lender’s policy
  • Escrow: Often each side pays their own fees
  • Escrow company is traditionally chosen by the buyer (though sellers sometimes request a specific company)
• Northern California:
  • Customs vary from county to county
  • Title and escrow companies are sometimes selected by the seller
  • Escrow/title fees may be split or negotiated

Because customs can be so local, your agent is your best resource for what’s typical in your specific city or county.

What Buyers and Sellers Should Know

• Both sides can negotiate who pays for title and escrow, regardless of local tradition.
• Market conditions matter.
  In a buyer’s market, sellers may offer to pay more closing costs.
  In a seller’s market, buyers often take on more fees to stay competitive.
• Requesting a specific title company is allowed, but both parties must agree.

In California, title and escrow fees don’t follow a one-size-fits-all rule. Customs vary across the state—and sometimes even between neighboring cities. The best approach is to understand the typical expectations, then negotiate confidently with your agent’s guidance.

If you’re buying or selling a home in California, knowing who typically pays these fees can help you prepare, budget wisely, and avoid surprises on closing day.

If you’re considering a move or investment and require a trusted Real Estate Broker, we’re here to assist you. Contact us via email at TEAM@McDanielCallahan.com, complete the form below, or give us a call at 925-838-4300. We are ready to provide expert guidance and support for all your real estate needs. Terry McDaniel DRE License #00941526