2025 Commercial Escrow Fee Schedule California
California commercial escrow fees are calculated on transaction value, document complexity, and regulatory requirements. Base rates in Los Angeles County currently range from $2.50 to $4.00 per thousand of purchase price. Additional charges include city transfer tax, county recording fees, wiring, messenger services, and compliance reviews. Typical total cost equals 15 to 25 basis points of the sale amount.
A $10 million transaction therefore generates escrow costs of $15,000 to $25,000. Wire fraud protection endorsements, now standard, add $175. All fees are negotiable prior to escrow opening but become fixed once instructions are executed.
Allocation of Escrow Costs in Los Angeles Market
Local custom divides escrow fees equally between buyer and seller unless otherwise agreed. Sellers occasionally absorb the entire fee to preserve stated cap rates. Buyers should insert fee allocation language in the letter of intent to avoid later disputes. Lenders customarily pay their own documentation and review charges yet may attempt to shift these to the borrower settlement statement.
Early review and strike of such clauses will save approximately $3,000 on an average transaction. Volume investors may request bulk pricing; escrow companies frequently grant 10 percent reductions for repeat business.
Timeline Impact on Total Expense
California commercial escrow averages 45 to 75 calendar days. Each day of extension beyond the contractual closing date triggers additional costs including interest on bridge financing, supplementary escrow subs, and reissued wire approvals.
Most escrow companies impose extension fees of $250 per day after the stated closing date. Timely delivery of due diligence materials in organized digital format minimizes revision surcharges and maintains the original fee schedule.
Green Building Compliance Escrow Surcharge 2026
Effective January 1, 2026 the City of Los Angeles will withhold certificate of occupancy for new commercial buildings until energy benchmarking data is uploaded to the state portal. Escrow cannot close without this certificate; therefore transactions will require an additional 7 to 10 days and a compliance review fee of $650. Principals should incorporate this contingency into purchase and sale agreements to avoid late closing penalties.
Accurate forecasting of commercial escrow fees protects internal rate of return calculations and preserves investor confidence. Secured Trust Escrow has closed over $3 billion in California commercial transactions since 2018 and maintains transparent fee schedules with no post closing surprises. Contact our commercial desk today to lock in your 2025 fee quote before market conditions adjust.
