Buying in Beverly Hills comes with a lot of moving parts, and closing costs can surprise even seasoned buyers. When you are writing a large check for a luxury property, small percentage differences turn into big dollar amounts. You want a clear, practical picture of what you will owe beyond the purchase price so you can plan with confidence. In this guide, you will see what closing costs cover, how all-cash and financed deals differ, example ranges at high price points, and simple ways to keep costs in check. Let’s dive in.
What closing costs cover
Closing costs are the fees and prepaids required to transfer ownership and, if applicable, record a mortgage. In Beverly Hills, they typically include:
- Escrow and closing agent fees for managing documents, funds, and recording.
- Title insurance and title-related charges for owner and lender protection.
- Recording and transfer taxes at the county level and possibly city level.
- Lender charges if you finance, including appraisal and underwriting.
- Prepaids and reserves like property tax proration and insurance impounds.
- Inspections and reports for due diligence.
- HOA or condo fees for transfers and statements.
- Miscellaneous items such as notary, wire, courier, and legal or accounting support.
Beverly Hills luxury specifics
At luxury price points, certain items scale with price. Title premiums and some escrow fees follow tiered schedules, so the line items can be large. Many properties are held in trusts or LLCs, which can add documentation, timing, and professional advisor costs. High-end estates often require specialized inspections and sometimes longer escrows, especially for hillside properties that call for geotechnical or slope-stability reviews.
Buyer closing costs by category
Escrow and closing fees
The escrow company manages the closing, funds, and recording. Fee schedules often scale by transaction size. In Southern California, buyers and sellers commonly split escrow fees, but the split is negotiable and set in your contract. Expect your share plus small administrative items like wires, courier, and notary.
Title insurance and title-related charges
There are two policies. The owner’s title policy protects your ownership. The lender’s title policy protects your lender if you finance. In Southern California, sellers commonly pay for the owner’s policy and buyers pay for the lender’s policy, but this is negotiable. Premiums are regulated and tiered in California, and large purchase amounts produce large premiums. You may also see endorsements and search-related charges.
Recording and transfer taxes
Los Angeles County charges recording fees to file deeds and deeds of trust. These are usually modest fixed amounts. A documentary transfer tax applies at the county level, and some cities within the county add their own city transfer taxes. Always verify current requirements with the county recorder and the City of Beverly Hills, since city-level surcharges can be significant in some municipalities.
Lender costs on financed purchases
If you use a loan, factor in origination or processing fees, underwriting, discount points, appraisal, credit report, flood certification, and the lender’s title policy. Jumbo appraisals on high-end homes are often more expensive and more detailed. Your lender may also collect reserves for property taxes and insurance.
Prepaids, reserves, and taxes
You will pay a pro rata share of property taxes from the day your deed records. Lenders often collect several months of taxes and your first-year insurance premium in reserves. After closing, California may issue a supplemental property tax bill because the ownership changed, so budget for that.
Inspections and due diligence
Budget for a general home inspection, pest or termite inspection, and system checks for mechanical and electrical components. Hillside properties often benefit from sewer, septic if applicable, and geological or slope-stability evaluations. Natural Hazard Disclosure and any environmental or historic reports may apply depending on the property.
HOA and condo fees
If the home is in an HOA or a condo building, expect transfer fees, estoppel or payoff statements, and sometimes capital contributions. These vary by association and are typically buyer-paid items.
Miscellaneous and professional support
You may see wire, courier, and notary fees. If you are purchasing into or out of an LLC or trust, plan for legal or tax advisor costs. Documentation and timing can affect escrow.
All-cash vs financed: what changes
All-cash basics
All-cash buyers avoid lender fees, mortgage-related recording fees, and the lender’s title policy. Closings can be faster and simpler. It is still wise to obtain an owner’s title policy to protect your ownership.
Financed basics
Financed buyers add lender-driven costs, including appraisal, underwriting, loan administration, discount points if chosen, and the lender’s title policy. Lenders often require reserves for taxes and insurance, and documentation is more intensive for high-value properties.
Which is faster and simpler
All-cash closings are typically simpler because they remove the loan approval path. Both types of purchases still rely on escrow and title to clear the property and record the deed, so verification timelines still matter.
Example cost ranges at $5 million and $10 million
These examples are approximate and for illustration only. Actual line items vary by provider, contract negotiation, loan program, and timing. Always confirm with your lender and escrow or title team.
All-cash buyer, $5,000,000 purchase
- Escrow fee (buyer portion): about $5,000
- Owner’s title policy (if buyer purchases): about $12,000
- Recording fees and county documentary transfer tax (county-only illustration): about $1,500
- Inspections and reports: about $3,000 to $10,000
- HOA and transfer items: about $500 to $2,000
- Estimated buyer closing cost subtotal: about $22,000 to $31,000, roughly 0.44% to 0.62% of price
Financed buyer, $5,000,000 purchase with 70% loan-to-value ($3.5M loan)
- Escrow fee (buyer portion): about $5,000
- Owner’s and lender’s title policies: about $20,000 combined
- Lender fees, appraisal, and credit: about $10,000 to $40,000
- Recording and transfer: about $1,500
- Prepaids and reserves for taxes and insurance: about $10,000 to $50,000
- Inspections and HOA items: about $4,000 to $12,000
- Estimated buyer closing cost subtotal: about $50,000 to $130,000, roughly 1.0% to 2.6% of price
At $10,000,000
- Expect the same categories to scale up. Title premiums and lender-related fees rise with insured and loan amounts, though tiered schedules can temper the increase. Larger numbers magnify small percentage changes, so add a budget cushion.
Negotiation levers that save you money
Title policies and escrow split
In many Southern California deals, sellers pay the owner’s policy and buyers pay the lender’s policy. Both the policy split and the escrow fee split can be negotiated in your offer. Confirm the final arrangement in the purchase contract.
Seller credits and repairs
You can request credits for closing costs or repairs. At luxury price points, credits may be limited and loan rules can cap the size of credits on financed purchases. If you prefer, you can negotiate repairs instead of credits after inspections.
Shop lenders and compare points
Compare Loan Estimates early. Paying points raises closing costs but can lower your rate and monthly payment. Run the math based on how long you plan to hold the property.
Title, escrow, and timing
Ask for itemized fee quotes from title and escrow before you remove contingencies. Coordinating timing with your team can help you avoid rush or overtime fees and reduce last-minute surprises.
Beverly Hills buyer checklist
- Ask escrow and title for a written, itemized estimate tailored to your purchase price.
- Ask your lender for a detailed Loan Estimate and Closing Disclosure and compare line items.
- Confirm with escrow whether a city transfer tax applies where the property sits, and verify with the City of Beverly Hills and the county recorder.
- Review the preliminary title report for liens, easements, CC&Rs, and any special assessments like Mello-Roos.
- Clarify who is paying which title policy in your contract and negotiate if needed.
- If you are buying in or out of an entity, loop in your CPA and real estate attorney early.
- Budget for a supplemental property tax bill after closing.
- Schedule inspections appropriate to the property type, especially for hillside or estate-scale homes.
How RANGE supports your purchase
You want a team that blends technical rigor with discretion. As a boutique, owner-operated practice, we bring builder-level insight to due diligence, from hillside conditions and systems to finish quality. We coordinate with escrow, title, and lenders, help you anticipate closing costs, and connect you with trusted inspectors and advisors. When privacy matters, our curated access and calm, hands-on process keeps your move efficient and understated.
Ready to talk through your numbers and next steps in Beverly Hills? Schedule a discreet consultation with RANGE REAL ESTATE.
FAQs
What are typical closing costs for a Beverly Hills buyer?
- For an all-cash $5 million purchase, plan for about $22,000 to $31,000; for a financed $5 million purchase at 70% LTV, plan for about $50,000 to $130,000 depending on loan terms and reserves.
Who usually pays for title insurance in Beverly Hills?
- It is common in Southern California for the seller to pay the owner’s policy and the buyer to pay the lender’s policy, but both are negotiable and should be set in the contract.
Do all-cash buyers still need title insurance?
- Yes, an owner’s title policy is strongly recommended to protect your ownership, even if there is no loan.
Are there city transfer taxes in Beverly Hills?
- Los Angeles County charges documentary transfer tax; some cities add a city transfer tax, so verify the current rules with the county recorder, the City of Beverly Hills, and your escrow officer.
How are property taxes handled at closing?
- You pay a pro rata share from the recording date, and if you finance, your lender may collect months of reserves; after closing, a California supplemental bill may arrive due to the ownership change.
What inspections should I budget for on a hillside home?
- Plan for a general home inspection, pest or termite, system-specific checks, sewer or septic if relevant, and geological or slope-stability evaluations, plus a Natural Hazard Disclosure report.
