A Los Angeles buyer's cash to close is the down payment plus closing costs, prepaid interest and insurance, and the opening deposit to any impound account, minus the earnest money deposit and any seller or lender credits. In Los Angeles County, the buyer customarily pays the lender's title policy, half the escrow fee and the fees to record the deed and the new loan, while the seller customarily pays the transfer taxes. The lender's Closing Disclosure, due three business days before closing, has the final figure.
Our free LA Buyer Cash-to-Close Guide has a worksheet for the estimate and a checklist for the tax bill that arrives after closing. Download the PDF there and send it to your buyer early in escrow.
What goes into cash to close?
The Consumer Financial Protection Bureau describes cash to close as the total a buyer pays at closing on top of any money already paid. Build the estimate in this order:
Start with the purchase price and subtract the loan amount. That's the down payment.
Add the lender's charges from the Loan Estimate.
Add the buyer's title, escrow and recording costs.
Add prepaid interest and the first year's homeowner's insurance premium, if it is paid at closing.
Add the initial deposit to an impound account, if the loan has one.
Add or subtract prorations of property taxes and HOA dues.
Subtract the earnest money deposit, which is credited to the buyer.
Subtract seller credits and lender credits.
The Loan Estimate shows an Estimated Cash to Close early in the loan process. Compare it with the Closing Disclosure when that arrives, line by line.
What does a buyer customarily pay in LA County?
Title insurers' published customs for California and Los Angeles County put these lines on the buyer's side:
Lender's title policy. The policy that protects the lender. The buyer customarily pays for it.
Half the escrow fee. Buyer and seller customarily split it. Call Iris for a quote.
Recording fees. For the grant deed and the buyer's new deed of trust.
The seller customarily pays the owner's title policy and the county and city transfer taxes, including Measure ULA in the City of Los Angeles. HOA charges such as a transfer fee go where the purchase agreement puts them. By law, the association bills the seller for the Civil Code 4525 resale documents, and any transfer charge the association itself imposes is limited to its actual cost to change its records (Civil Code 4530 and 4575). Every one of these lines can be negotiated, and the purchase agreement controls.
Which lender charges and prepaids should buyers expect?
Lender charges sit in the loan cost sections of the Loan Estimate and the Closing Disclosure. A few other lines catch buyers off guard:
Prepaid interest. The CFPB defines it as the daily interest from the closing date to the period covered by the first monthly payment.
Homeowner's insurance. Lenders generally require proof of coverage, and paying the first year's premium at closing is common. Standard policies do not cover earthquake or flood damage.
Impound deposit. If the loan has an escrow (impound) account for property taxes and insurance, the initial deposit funds it. Federal rules cap the extra cushion at one-sixth of the estimated annual payments from the account.
Lender credits. A rebate that offsets closing costs, sometimes in exchange for a higher interest rate.
The lender must provide the Closing Disclosure three business days before closing, so buyers have time to review it before they sign.
What tax bill arrives after closing?
A purchase triggers a reassessment as of the first day of the month after the ownership change. The LA County Treasurer and Tax Collector then sends a supplemental bill for the difference between the new value and the old one, for the rest of the tax year. A purchase between January 1 and May 31 brings two supplemental assessments, according to the California State Board of Equalization. Three things to tell every buyer:
The supplemental bill goes only to the owner, even with an impound account, and lenders do not usually pay it.
It comes in addition to the annual bill, which may still go to the prior owner. If the annual bill does not arrive, request it from the Tax Collector.
If the new value is lower than the old one, the supplemental is a refund.
Two more items belong on the closing checklist. Buyers who live in the home can ask the LA County Assessor about the Homeowners' Exemption, which takes $7,000 off the taxable value. And the buyer should sign the Preliminary Change of Ownership Report that goes with the deed; without it, the Recorder may charge an extra $20.
How should a buyer wire funds?
Cal West sends wiring instructions directly to the buyer. Before you send any funds, call Cal West at (323) 300-6122, using a number you already know, to verify the wiring instructions. Treat any emailed change to wiring instructions as fraud until it is verified by phone. Make that call before every wire, even when the instructions look familiar.
For how a file moves from the deposit to recording, see The escrow process explained, step by step.
Questions agents ask
Is the earnest money deposit part of cash to close?
Yes, as a credit. The deposit counts toward what the buyer owes, so it reduces the amount due at closing. The Closing Disclosure lists it among amounts already paid.
Will the lender pay the supplemental tax bill from the impound account?
Usually not. The LA County Treasurer and Tax Collector sends supplemental bills only to the owner, and lenders do not usually pay them, so buyers should plan for the bill.
When will my buyer see final numbers?
The lender must provide the Closing Disclosure three business days before closing. Compare it with the Loan Estimate and ask the lender or escrow about any line that changed.
Opening an escrow? Send Iris the fully executed contract at iris@calwestescrow.com or call (323) 300-6122.
This post is general information about California real estate transactions as of October 2026. It is not legal or tax advice, and laws and figures change. Talk with your attorney, CPA or real estate broker about your situation.
