Are you trying to budget for closing in Berkeley and wondering how transfer taxes and escrow timing will affect your move? You are not alone. These two topics can shape your net proceeds as a seller and your cash-to-close as a buyer. In this guide, you will learn how Berkeley’s transfer tax works, who typically pays, how to estimate the cost, and what a standard East Bay escrow timeline looks like. Let’s dive in.
Berkeley transfer tax basics
Berkeley has a city transfer tax that applies to real property transfers inside city limits. Alameda County also collects a county documentary transfer tax when the deed records. These taxes are calculated from the sale price or other statutory consideration.
You do not write separate checks on your own. Your escrow and title team collects the taxes as part of closing and pays them when the deed records with Alameda County. Some transfers can qualify for exemptions, but those require specific documentation.
Who usually pays in Berkeley
Payment is negotiable and set in your purchase agreement. That said, local custom in many East Bay listings is that the seller pays both the city and county transfer taxes.
You can also see negotiated splits. Examples include the seller paying county while the buyer pays city, or a 50-50 split of the total. In softer markets, buyers may agree to pay more of the cost to strengthen an offer. Always confirm who pays in writing before you open escrow.
Estimating your transfer tax
You can estimate the cost with a simple formula:
- County tax = (Sale price ÷ 1,000) × county rate in dollars per $1,000
- City tax = (Sale price ÷ 1,000) × city rate in dollars per $1,000
- Total transfer tax = county tax + city tax
Below are hypothetical examples to show the math. These are for illustration only. Confirm current rates with your escrow officer or the City of Berkeley before relying on a dollar figure.
Hypothetical example A: $1,000,000 sale
- Assumed county rate: $1.10 per $1,000 → $1,100
- Assumed city rate: $5.00 per $1,000 → $5,000
- Total transfer taxes: $6,100
- If split 50-50, each side would pay $3,050
Hypothetical example B: $750,000 sale
- Assumed county rate: $1.10 per $1,000 → $825
- Assumed city rate: $5.00 per $1,000 → $3,750
- Total transfer taxes: $4,575
Your escrow officer can provide a precise, itemized estimate that reflects the contract terms, current rates, and any exemptions.
Exemptions and documentation
Some transfers may be exempt from all or part of the transfer tax if they meet specific criteria. Common examples include certain transfers between spouses or registered domestic partners, parent-child transfers under applicable exclusion rules, transfers to or from qualifying non-profits or governmental entities, and some foreclosure-related transfers. Exemptions are case specific.
Expect to provide documentation to support an exemption. Escrow will prepare the required forms and affidavits and submit them with the deed when recording. If you think an exemption may apply, bring it up with your agent and escrow officer early.
Verify rates and forms
Transfer tax rates and forms can change. You can verify details through these sources:
- City of Berkeley Finance or Treasurer’s office for the municipal transfer tax rate, forms, and exemptions
- Berkeley Municipal Code for the ordinance and definitions
- Alameda County Clerk-Recorder for county documentary transfer tax and recording requirements
- Your escrow or title officer for exact calculations and required documentation
Where transfer tax fits in closing costs
Transfer taxes are one part of your overall closing costs. Escrow collects and pays them at recording alongside other standard items.
- Typical closing costs include escrow fees, title insurance premiums, recording fees, lender fees, prepaid taxes or HOA prorations, home warranty if included, and any repair credits.
- In many East Bay transactions, sellers commonly pay city and county transfer taxes, the owner’s title policy, and broker commissions. Buyers commonly pay lender fees, the lender’s title policy, recording of the deed of trust, and their share of escrow fees. All of this is negotiable.
East Bay escrow timeline
Most financed transactions close in about 30 to 45 days. Cash deals can often close faster, sometimes in 7 to 21 days, if disclosures and title are clear.
Here is how a typical escrow flows:
- Day 0: Offer accepted, escrow opens, earnest money deposited per contract
- Days 1–3: Disclosures delivered, escrow orders preliminary title report, HOA docs requested if applicable
- Days 3–10: Buyer inspections such as general home, pest, roof, and sewer scope
- Days 10–21: Loan application and appraisal underway, underwriting begins
- Days 17–30: Contingencies removed per contract, title issues cleared, lender conditions satisfied
- Closing day: Funds in, deed records, transfer taxes and fees paid, title insurance issued, possession transfers per contract
FHA or VA loans may add steps that extend timing. If an appraisal value comes in low, the parties may renegotiate or adjust funds, which can add days.
30-day escrow example
Use this as a quick reference for a standard 30-day escrow:
- Day 0: Escrow opens; earnest money in
- Days 1–3: Disclosures sent; inspections scheduled
- Days 3–10: Inspections completed; repair or credit discussions
- Days 3–17: Buyer applies for loan; appraisal ordered and completed
- Days 17–21: Inspection and loan contingencies removed
- Days 21–30: Final underwriting approval; final walkthrough; funding, recording, and closing
Tips to keep closing on track
- Clarify who pays transfer taxes in the offer so there are no surprises later.
- Ask escrow for a written estimate of all closing costs as soon as you open escrow.
- If you are financing, confirm with your lender how seller credits and closing costs may affect your loan approval.
- Plan realistic contingency periods. Build in time for inspections, appraisal, and any title clearance.
- If an exemption might apply, gather documentation early and loop in your escrow officer.
Ready to plan your move?
Whether you are selling or buying in Berkeley, a clear plan for transfer taxes and a realistic escrow timeline will help you protect your bottom line and reduce stress. If you want tailored numbers, strategy, and timeline guidance for your goals, connect with Nancy Noman to get started.
FAQs
Who pays Berkeley transfer taxes in a typical sale?
- In many East Bay listings, the seller commonly pays both city and county transfer taxes, but payment is fully negotiable in the purchase agreement.
When are transfer taxes paid during closing?
- Escrow collects the funds and pays transfer taxes at recording, the same day your deed records with Alameda County.
How do I estimate Berkeley transfer tax without exact rates?
- Use the formula: county tax plus city tax, each calculated as the sale price divided by 1,000 times the respective rate. Ask escrow for current rates and a written estimate.
Can I claim an exemption from the transfer tax?
- Some transfers may qualify, such as certain spousal or parent-child transfers, or transfers to qualifying entities. You will need supporting documents and approval at recording.
How fast can a cash purchase close in Berkeley?
- If disclosures and title are ready, many cash deals close in 7 to 14 days. Timing depends on how quickly parties and escrow can process documents.
What happens if the appraisal is low during escrow?
- The parties may renegotiate price, the buyer may bring additional cash, or the buyer may exercise or waive the appraisal contingency, which can extend the timeline.
