Feeling unsure about who pays which fees at closing can stall your plans. If you are buying or selling in Murrieta, clear numbers and local custom matter because they shape how much cash you bring and how much you take home. In this guide, you will learn who typically pays what, how prorations work, how credits can shift your bottom line, and how to budget with confidence for the next 3 to 12 months. Let’s dive in.
What closing costs include
Closing costs are the one-time and recurring fees due to complete a home sale. Some are paid by buyers, some by sellers, and many can be negotiated. In California, local custom often guides who pays specific items, but your purchase contract controls the final split.
Typical buyer costs often run about 2 to 5 percent of the purchase price. Seller costs often total about 6 to 10 percent when you include brokerage commissions, plus other seller-paid items. Your exact figures will vary by loan type, property taxes, HOA, and negotiated credits.
Who pays what in Murrieta
Local customs in California are consistent on many items, but they can vary by county and even by neighborhood. Always confirm your splits with your agent, lender, and escrow officer.
Buyers typically pay
- Loan fees if financing, such as origination, underwriting, processing, and any points if you buy down the rate.
- Appraisal and inspections, including general home, termite or pest, roof, sewer, and other specialty checks you order.
- Lender’s title insurance policy and recording fees for the deed of trust.
- A share of escrow or closing fees as agreed in the contract.
- Prepaid items like your first year of homeowner’s insurance, prepaid mortgage interest, and property tax or HOA prorations.
- HOA transfer or disclosure fees if required by the association.
Sellers typically pay
- Real estate brokerage commissions, which are negotiated in the listing agreement.
- Owner’s title insurance policy to protect the buyer, which is a common California custom.
- A share of escrow or closing fees as agreed in the contract.
- Documentary transfer tax at the county level and any city transfer tax if applicable.
- Mortgage payoffs, liens, or judgments tied to the property.
- Prorated property taxes, HOA dues, and agreed credits for repairs or closing costs.
- Optional items negotiated in the contract, such as a home warranty.
Recurring vs non-recurring costs
Understanding which items repeat and which do not helps you budget accurately.
- Recurring costs are ongoing items that can be prorated at closing, like property taxes, HOA dues, and in some cases utilities or rents for investment properties.
- Non-recurring costs are one-time items tied to the transaction, such as lender fees, title insurance premiums, escrow fees where allocated, and commissions.
How prorations work
- Property taxes in California are split based on your closing date. The seller pays up to the day of closing and the buyer pays after. California’s base property tax rate is about 1 percent of assessed value, plus voter-approved local assessments. Many newer Murrieta communities include special taxes, often called Mello-Roos or Community Facilities District assessments, which appear on the tax bill.
- Mortgage interest is prepaid by the buyer from the date the loan funds through the end of that month, so your first mortgage payment timing depends on your funding date.
- HOA dues are often prorated, and one-time HOA transfer or capital contributions are paid per the contract and association rules.
Murrieta specifics to verify
Murrieta and greater Riverside County have a few recurring themes. Ask your escrow officer and lender to confirm each item for your address and loan.
- Documentary transfer tax and any city transfer tax. Riverside County levies a documentary transfer tax and some cities add a municipal tax. Confirm your property’s location and the current rates with the county and city.
- Property taxes and special assessments. Review the Preliminary Title Report and tax bill for Mello-Roos or other special districts that increase annual taxes.
- Title and escrow customs. In many California deals the seller pays the owner’s title policy and escrow fees are split, but exact splits vary. Ask your escrow team what is typical in Murrieta.
- HOA fees and special charges. Many Murrieta neighborhoods are in HOAs. Request HOA disclosures early to review dues, transfer fees, estoppel letters, and any pending assessments.
- Septic, well, or easement items. Some properties may have systems or easements that require extra inspections or escrow steps.
- Assistance programs. Riverside County and California offer down payment and closing cost assistance programs. Ask about options and eligibility with your lender or housing agencies.
How credits and concessions help
Credits can move money from one side of the settlement statement to the other, changing your cash to close or net proceeds.
- Seller credits toward buyer costs reduce the buyer’s out-of-pocket and increase the seller’s total costs. Loan program limits apply. For example, FHA often allows seller concessions up to 6 percent of the price for closing costs and prepaid items. VA and conventional loans have their own caps and rules, which your lender will confirm.
- Credits in lieu of repairs can replace doing work before closing. Funds appear on the settlement statement and are applied at closing.
- Rate buydowns and lender credits trade upfront costs for a higher or lower rate. Your lender can show break-even comparisons.
- Escrow fee splits and other line items can be negotiated in the purchase agreement.
- Escrow holdbacks can reserve funds after closing to complete agreed repairs, which temporarily reduces seller proceeds until release conditions are met.
Example: buyer cash to close
Here is a simple illustration using round numbers. Your actual figures will come from your Loan Estimate and your escrow officer.
- Purchase price: 600,000
- Down payment at 10 percent: 60,000
- Estimated buyer closing costs and prepaids at 3 percent: 18,000
- Earnest money deposit already paid: 10,000 credit
- Negotiated seller credit at 2 percent: 12,000
Buyer cash to close = 60,000 + 18,000 - 10,000 - 12,000 = 56,000.
This example bundles prepaid interest, first-year insurance, and tax or HOA prorations inside the 3 percent estimate. Your loan type, rate, taxes, HOA dues, and credits will change the final number.
Example: seller net proceeds
Here is a simple seller net sheet illustration. Replace these assumptions with your real numbers from escrow.
- Sale price: 600,000
- Estimated mortgage payoff: 350,000
- Commission at 5.5 percent: 33,000
- Other seller closing costs for illustration at about 1 percent: 6,000
- Prorated taxes and HOA at closing estimate: 1,500
- Agreed seller credit to buyer: 5,000
Estimated net to seller = 600,000 - 350,000 - 33,000 - 6,000 - 1,500 - 5,000 = 204,500.
Your settlement statement will show exact payoffs, prorations, title and escrow fees, transfer taxes, and any credits.
Timeline and documents
- Offer accepted: buyer delivers earnest money deposit, which is credited back at closing.
- Escrow opened: buyer orders appraisal and inspections, usually before contingencies are removed.
- Loan application: your lender provides a Loan Estimate within 3 business days, outlining estimated closing costs.
- Three days before closing: buyer receives the Closing Disclosure with final loan terms and closing costs.
- Closing day: buyer wires remaining cash to close per escrow instructions, seller signs payoff docs, and escrow disburses net proceeds.
Key documents you will review include the Loan Estimate, Closing Disclosure, Preliminary Title Report, escrow instructions, settlement statement, and any HOA disclosures or estoppel letters.
Smart prep checklist
- Ask your escrow officer for a preliminary buyer or seller net sheet early.
- Buyers, compare at least 2 to 3 lenders and review each Loan Estimate line by line.
- Request the Preliminary Title Report early to spot Mello-Roos and other assessments.
- Confirm title and escrow fee splits that are customary in Murrieta.
- Budget for property taxes at roughly 1 percent of assessed value plus local assessments, and confirm if your home is in an HOA or a special district.
- Put agreed credits in writing in the purchase contract and confirm they meet loan program rules.
Ready for clear, local guidance with no surprises at signing? Reach out to William Arant for a calm, numbers-first walkthrough of your Murrieta closing costs and a plan tailored to your move.
FAQs
Who usually pays title and escrow in Murrieta?
- In many California transactions the seller pays the owner’s title policy and escrow fees are split, but local custom can vary. Confirm the split with your escrow officer and purchase contract.
How much are buyer closing costs in Murrieta?
- A common range is about 2 to 5 percent of the purchase price, excluding the down payment. Loan type, rate, taxes, HOA dues, and negotiated credits will change your final number.
How are property taxes prorated in Riverside County?
- Taxes are split based on the closing date. The seller pays up to the day of closing and the buyer pays after. Watch for supplemental or special taxes that can appear on the bill.
What is Mello-Roos and will I have it?
- Mello-Roos are special district taxes that fund local infrastructure in certain communities. They show up as separate lines on tax bills. Many newer Murrieta neighborhoods have these districts, so review your Preliminary Title Report and tax bill.
Can a seller pay my closing costs with an FHA or VA loan?
- Yes, seller concessions are allowed within program limits. FHA commonly allows up to 6 percent for certain costs, and VA has specific rules on what a seller can cover. Your lender will confirm the cap for your loan.
When will I see my final numbers before closing?
- Your lender must provide the Closing Disclosure at least 3 business days before closing. Your escrow officer will also provide a settlement statement showing all line items and net totals.
