Under standard California residential purchase practice, how are escrow fees typically allocated between buyer and seller?
Correct Answer
D) Escrow fees are typically split between buyer and seller, with the exact allocation subject to local custom and negotiation
In California, escrow fees are customarily shared between the buyer and seller, but there is no statewide statutory requirement dictating a fixed split. Local custom varies by county — for example, practices in Los Angeles County may differ from those in San Francisco County — and the parties may negotiate any allocation they agree to in the purchase agreement.
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Previous Question
A California buyer removes all contingencies under a C.A.R. Residential Purchase Agreement and then defaults without a valid contractual reason. Both parties had initialed the liquidated damages clause. What is the most likely outcome regarding the earnest money deposit?
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A California escrow officer is preparing for the closing of a residential transaction. Which of the following is NOT a standard item that appears as a debit (charge) to the seller on the closing statement?