When buying or selling a home in California, understanding escrow fees and who pays them is essential for planning your total closing costs. Escrow fees cover the services of a neutral third party that securely manages funds and documents until the transaction closes, ensuring that both the buyer and seller meet their contractual obligations.
With cybercrime on the rise, it’s more important than ever to work with a highly-rated escrow company. At Berkshire Hathaway HomeServices California Properties, we partner with experienced providers, including our preferred partner, Pickford Escrow, to keep your transaction secure.
In most cases, escrow fees in California real estate transactions are split between buyer and seller. This fee structure is usually selected within the California Purchase Agreement under section Q(7) 19B, where the buyer’s agent will check a box specifying whether the Buyer, Seller, Both, or Each will pay their own fees. While fees may vary depending on the escrow company, Pickford Escrow charges a base fee of $500, plus $2 per $1,000 of the home’s purchase price per side, along with a $90 archival fee for each party to retain the file for five years.
As an example, for a $2.5 million home, a buyer using our escrow partner would expect to pay approximately $3,090 in escrow fees, which includes a $500 base fee, $2 per $1,000 of the purchase price, and a $90 archival fee to retain the file for five years
Knowing these escrow fees upfront can help both buyers and sellers accurately plan for their transaction costs. If you have any questions about the customary division of fees between buyers and sellers during a real estate transaction, as well as any other home-buying or selling costs, feel free to reach out!