Thursday, May 8, 2008

New construction closing costs Santa Clara County

Answer to the question about who pays closing costs for new construction in Santa Clara County:

The convention on sales in Santa Clara County is that the seller pays for escrow fee and seller's title insurance. The buyer pays for the lender's supplemental title insurance. County transfer tax is paid by seller and City of San Jose transfer tax is split 50/50. Santa Clara County is very buyer favorable. Alameda and San Mateo counties are very seller favorable. As for new construction developments - many have been making the buyer pay for all of it. This rubs many buyers the wrong way because they will have to pay the most on both the purchase and the eventual sale - because as a resale - it would normally fall under the accepted convention of the county. It is what it is unfortunately...


Anonymous said...

I am new to the Santa Clara valley housing market. What is the Santa Clara County Transfer Tax when purchasing an existing condo in the county?


Mario Pinedo, CCIM said...

County transfer tax is $1.10 per $1,000 of purchase price. This is typically paid by the seller. San Jose and Mt View have city transfer taxes of $3.30 per $1,000 - this is typically split 50/50 between buyer and seller. Santa Clara County (compared to Alameda and San Mateo counties) is very buyer favorable as to who pays what closing costs.