Closing Costs for Sellers
Closing costs usually run in the range of 6% to 7% of the sales price, not including loan pay-off and any significant home preparation, staging or repair costs. Typically, the largest seller costs are brokerage commissions and transfer
The list below details how closing costs are typically split in San Francisco County.
Did You Recently Purchase A Property?
Escrow prorates taxes, but the actual taxes may not have been paid and you are responsible for any unpaid taxes at escrow closing. Read your escrow papers to determine if any portion of annual taxes were paid by the previous owner prior
to closing. The Tax Collector will not send a bill for the remainder of the year in which you acquired the property unless requested. If any taxes remain unpaid, call the Tax Collector and request a bill; have the Assessor’s Identification
Number before calling.
If you have any questions regarding anything pertinent to property taxes, you should contact the local Assessor’s Office. An excellent first step is to visit their website.
Real Estate Transfer Taxes in San Francisco
Transfer tax is a transaction fee imposed on the transfer of land or real property from one person (or entity) to another. The transfer tax rate is variable, depending on the purchase price OR the fair market value, as shown in the chart below (per SF Assessor’s website 3/2017).
In San Francisco, transfer taxes upon change of ownership are typically paid by the Seller, though it can be otherwise agreed to in the purchase contract.
If entire value or consideration is X, then the Tax rate for entire value or consideration is Y:
- More than $100 but less than or equal to $250,000: $2.50 for each $500 or portion thereof
- More than $250,000 but less than $1,000,000: $3.40 for each $500 or portion thereof
- $1,000,000 or more but less than $5,000,000: $3.75 for each $500 or portion thereof
- $5,000,000 or more but less than $10,000,000: $11.25 for each $500 or portion thereof
- $10,000,000 or more but less than $25,000,000: $13.75 for each $500 or portion thereof
- $25,000,000 or more: $15.00 for each $500 or portion thereof
Additionally, leaseholds with a term of 35 years or more are subject to transfer tax. The authority to collect transfer taxes and list of documentary transfer tax exemptions are codified in Article 12C of the San Francisco Business and Tax Regulations Code.
Exemptions will only be made if the recording party falls under one of the documentary transfer tax exemptions. If a transfer tax exemption is claimed, written documentation proving the exemption must be submitted at the time of recording, otherwise transfer taxes are due. Written documentation includes, but is not limited to, copies of trust and formation documents of legal entity (i.e. LLC operating agreement, Corporate By Laws/Minutes/Register, partnership agreement.)
A Transfer Tax Affidavit must accompany all documents submitted for recordation in which transfer tax is due, or an exemption is claimed.
DO THESE COMMON TYPES OF TRANSFERS CAUSE A TRANSFER TAX?
Between a married couple? No
Between domestic partners? No
Add or remove co-signer or co-owner for refinancing purposes? Yes
Between parent(s) and child(ren)? Yes
Individual(s) to/from his/her own trust? No
Individual(s) to his/her own Limited Liability Company or Limited Partnership or
Check out the San Francisco Assessor’s Office FAQ Sheets »