California counties charge documentary transfer tax at $0.55 for each $500 of consideration, or fraction of $500. The tax applies when consideration is over $100; a lien or loan that remains on the property after the sale is not counted in that amount. The county recorder collects the tax when the deed is recorded. State law assigns responsibility to a person who signs or benefits from the deed, while the purchase agreement can allocate the cost between buyer and seller.
A city may take half of the county rate as its own share, credited against the county tax, so the combined rate usually stays at $1.10 per $1,000. Some cities add a larger tax on top, and some transfers are exempt. Ask the title company or escrow to confirm whether a city tax applies to the property, the taxable amount, and the agreement’s allocation.
When you sell to us, we pay the closing costs, including the county documentary transfer tax and any city transfer tax. This promise never pays the seller’s mortgage, liens, back taxes or share of current property taxes.