When you sell a California home, the gross sale price is never what you walk away with. A seller net sheet—the itemized settlement statement you receive at close—tells the real story: mortgage payoff, real estate commissions, transfer taxes, HOA fees, insurance, title work, and a dozen other line items that chip away from your proceeds. Understanding what a seller net sheet actually includes, how each deduction is calculated, and where surprises hide is the only way to make a clear-eyed decision about listing price and timing. This guide walks you through a typical Ventura County seller net sheet for 2026, explains every line, shows sample calculations for homes at different price points, and flags the expenses that catch sellers off guard.
How a Seller Net Sheet Works
A seller net sheet (also called a settlement statement or closing statement) is a line-by-line accounting of your sale. It starts with your gross sale price and ends with the amount you receive at close. Everything in between—a mix of payoffs, commissions, taxes, fees, and credits—is itemized so you can see exactly where your money goes.
Your title company or escrow officer prepares the net sheet and shares it with you 24 hours before close (sometimes longer). You should review it carefully, ask questions about any unfamiliar line item, and raise discrepancies immediately. Mistakes happen, and catching them before you sign is far easier than disputing them after close.
The net sheet is prepared under California law and the rules of your local Multiple Listing Service (MLS). The California Association of Realtors (CAR) publishes standard forms, though the specific layout and detail may vary by title company or escrow service. What never changes is the principle: gross proceeds minus all legitimate costs and payoffs equals your net.
Mortgage Payoff and Interest Accrual
The first major deduction on a seller net sheet is your outstanding mortgage balance. If you have a loan, your lender provides a "payoff quote" a few days before close that includes three components: your principal balance as of the close date, per diem (daily) interest from the last payment date through close, and the lender's reconveyance fee.
Per diem interest is the amount your loan accrues each day. If your remaining balance is $400,000 and your interest rate is 6%, your daily interest is roughly $65. If your last payment cleared on the 15th and you close on the 22nd, you owe seven days of interest—roughly $455. This is not optional; it's how mortgages work. The escrow officer will calculate the exact amount based on your lender's quote.
The reconveyance fee (typically $25–$100) is what the lender charges to release the deed of trust once you pay off the loan. It's a flat administrative cost, and every loan has one. If you have a second mortgage or HELOC, each lender will have its own payoff quote and reconveyance fee. Second mortgages are less common in seller scenarios, but if you have one, it must be paid in full at close or the sale cannot proceed.
Real Estate Commission: The Post-NAR Landscape
In 2024, the National Association of Realtors (NAR) settled antitrust litigation that fundamentally changed how real estate commissions are negotiated. As of 2026, the traditional 5–6% commission split between the listing side and buyer's side is no longer assumed or standard. Instead, commissions are now negotiated separately and explicitly between the seller and listing agent, and separately between the buyer and buyer's agent.
The listing commission (what you pay your agent) is a contract between you and your listing broker and might range from 2% to 3% for a full-service transaction in Ventura County. The buyer's agent commission is now a separate negotiation between the buyer and their broker. It is not automatically 2.5% or any other percentage. Some buyer's agents may be paid directly by their buyer client (out of pocket), or the buyer may negotiate for a broker commission from the seller (which then gets paid from your proceeds if you agree).
If you're selling a $1,000,000 home in Simi Valley and your listing commission is 2.5% ($25,000), that's a cost you will see on your net sheet. If you've also agreed to pay the buyer's agent commission (another 2–2.5%, or $20,000–$25,000), that's a separate line item. In total, seller-side commission could range from $25,000 to $50,000 depending on what you've negotiated with your agent and buyer's agent at the time of contract.
This new regime means you should negotiate your listing commission explicitly and ask about buyer's side expectations in writing before you list. Don't assume "standard" rates—they no longer exist.
California Transfer Tax and Mansion Tax
California imposes a documentary transfer tax on the sale of real property. The standard rate is $1.10 per $1,000 of sale price (or fraction thereof). So a $1,000,000 sale incurs a state transfer tax of $1,100. Many California counties and cities impose their own local transfer taxes on top of the state levy.
In Ventura County (outside Los Angeles), the county itself typically charges no additional transfer tax beyond the state rate. However, some cities within the county—like Ojai—may impose a local transfer tax. You need to check the specific city where the property is located.
Los Angeles imposes an additional "Mansion Tax" on residential property sales. The rates as of 2026 are 4% on sales over $5,000,000 and 5.5% on sales over $10,000,000, applicable only within LA City limits. If you're selling a $5.5 million home in the Los Angeles area and it's within city limits, the mansion tax is 4% of the sale price: $220,000. This is deducted from your proceeds and is separate from the standard transfer tax. Properties in Westlake Village, Agoura Hills, and other unincorporated areas or outside LA City do not incur the mansion tax even if they're in LA County.
Transfer taxes are paid by the seller in California (by custom and law in most counties). They are typically the highest fixed cost on a net sheet after commission.
Escrow and Title Fees
Escrow and title fees are grouped because they're often bundled by the title company. A typical full-service closing in California incurs $1,500–$3,000 in escrow and title charges. These fees cover the escrow officer's work (receiving funds, coordinating docs, recording the deed), title search, title insurance, and settlement statement preparation.
The exact cost depends on the sale price and complexity. A $750,000 sale might cost $1,500–$1,800 in escrow and title fees. A $2,000,000 sale might be $2,500–$3,200. You should ask your listing agent or title company for an estimate before you list so there are no surprises on the net sheet.
By California law, the buyer can choose the title company, and if there's a dispute about who pays, the buyer bears the cost. However, by custom in many Ventura County markets, the seller pays. This should be explicitly negotiated in your purchase agreement.
Owner's Title Insurance
Owner's title insurance is a one-time premium paid at close that insures you (and your heirs) against future title defects—liens, encumbrances, or claims that didn't show up in the title search. The cost ranges from $350 to $1,200 depending on the sale price and your title company. Typically, the buyer is required to purchase an owner's policy as a condition of their loan, and the seller often pays this cost by custom, though it's negotiable.
Owner's title insurance is not a recurring cost; you pay it once, and it covers you indefinitely. If you buy a 1031 exchange property later, that property will need its own separate owner's policy.
HOA Transfer and Resale Documents
If your property is part of a homeowners association (HOA), you must provide the buyer with certain disclosure documents: the HOA financials, CC&Rs, bylaws, reserve study, and a resale certificate (or "Section 1 transfer fee authorization"). Preparing these documents, obtaining them from the HOA, and having them certified costs $300–$800 depending on the HOA and title company.
This fee is separate from any transfer fee charged by the HOA itself. Many HOAs charge a one-time transfer fee when a property changes hands (typically $200–$500 or a flat amount). Both the document preparation fee and any HOA transfer fee will appear on your net sheet.
Termite/Pest Inspection and Section 1 Work
California law requires a pest control report (Wood Destroying Pest Inspection, or "Section 1 report") to be provided to the buyer. The inspection itself costs $75–$200. If the inspector finds active wood-destroying pests or damage, the report will recommend repairs. Depending on your purchase agreement, you may be obligated to pay for these repairs before close.
Termite or wood-rot repair costs vary wildly: a minor localized area might cost $1,500–$3,000 to repair, while extensive damage could run $8,000–$15,000 or more. Structural repair is expensive. If the report shows significant damage and you're contractually obligated to fix it, this is one of the larger line items that can appear on a seller net sheet.
Many sellers negotiate to cap their pest liability or ask the buyer to accept the property "as-is" regarding pest issues. Whatever you agree to will show up as a deduction on close.
Home Warranty
Some sellers purchase a one-year home warranty for the buyer as a closing gift or negotiated part of the deal. A typical seller-paid home warranty costs $500–$700 and is paid at close. If you've committed to this, it's a line-item deduction from your proceeds.
County Documentary Tax Stamps and Recording Fees
California charges a documentary stamp tax on recorded instruments (the deed). The cost is typically $0.55 per $500 of consideration (or fraction thereof). On a $1,000,000 sale, this is roughly $1,100. Additionally, the county charges a recording fee for filing the new deed—typically $15–$30 depending on the county. These are small but real line items on every net sheet.
Prorated HOA Dues and Property Taxes
If your property is in an HOA, monthly dues are prorated between you (the seller) and the buyer based on the close date. If you close on the 15th of the month and owe $300 in monthly HOA dues, you'd pay roughly half ($150) and the buyer would pay the other half. This is a credit to the buyer and shows as a deduction from your proceeds.
Property taxes in California are also prorated. The county assesses property tax for the fiscal year (July 1 to June 30). When you sell mid-year, you pay your portion and the buyer pays theirs. The escrow officer calculates this based on the assessed value and close date. This can work in your favor (if you're owed a tax credit) or against you (if you owe a debit). In a typical sale, the property taxes roughly balance between buyer and seller, but you should ask for an estimate of the tax proration before you close.
HERO/PACE Liens and Other Mandatory Payoffs
If your property has a HERO (Home Energy Renovation Opportunity) loan or PACE (Property Assessed Clean Energy) financing, it is secured by a lien on the property. This lien must be paid in full at close, regardless of your mortgage payoff. These loans typically carry interest rates of 5–8% and are attached to the property, not the borrower.
If you took out a $20,000 HERO loan five years ago for solar panels or window replacement, you'll see a payoff line item on your net sheet. The payoff will include the remaining balance, accrued interest, and any prepayment penalty (if the loan terms allow). You cannot sell until this lien is satisfied.
Other mandatory payoffs might include judgment liens, tax liens (IRS, state, or county), or HOA liens for unpaid dues. Your title company will discover these during title search, and they must all be cleared at close from your proceeds. This is one of the big surprises that catches sellers off guard: a lien you forgot about can dramatically reduce your net.
Capital Gains and Income Taxes: The California and Federal Picture
The IRS allows a primary residence exclusion of up to $250,000 of capital gains for single taxpayers and $500,000 for married couples filing jointly. If you've lived in your California home for at least 2 of the last 5 years, you likely qualify. This means if you buy for $500,000 and sell for $1,000,000, your taxable gain is $500,000 (sale price minus cost basis) minus your exclusion. For a married couple, that's $500,000 – $500,000 = $0 taxable gain. No federal income tax owed.
But if you sell for $2,000,000, your gain is $1,500,000 and your exclusion covers $500,000, leaving $1,000,000 of taxable gain. Federal long-term capital gains tax (held more than one year) is 15% for most taxpayers or 20% for high earners. On $1,000,000, that's $150,000–$200,000 federal tax.
California also taxes capital gains as ordinary income at your marginal state rate (up to 13.3% for the highest earners). So on that $1,000,000 of taxable gain, you'd owe roughly $133,000 in state income tax, plus the federal 15–20%.
These taxes are not deducted on your net sheet—the net sheet shows your proceeds before taxes. But you should plan for them. If you're selling a property with significant appreciation, consult your CPA well before close to understand your tax bill.
FIRPTA Withholding for Non-Resident Sellers
If you're a foreign national or non-resident alien (for tax purposes, not citizenship), the buyer's side is required to withhold 15% of your sale proceeds and remit it to the IRS under the Foreign Investment in Real Property Tax Act (FIRPTA). This withholding appears as a deduction on your net sheet.
Example: You're a Canadian citizen selling a California rental property for $1,000,000. The escrow officer withholds $150,000 and remits it to the IRS. You receive $850,000 from the sale, net of all costs and the withholding. You can claim the withheld amount as a credit on your U.S. tax return, but you won't see it until you file and potentially receive a refund.
FIRPTA rules are complex and depend on your immigration status and tax residency. If this applies to you, consult a CPA or tax attorney before you sell.
The 1031 Exchange Option for Investment Property
If you're selling an investment property (rental house, commercial building, or vacant land held for investment), you may be eligible for a 1031 like-kind exchange. This allows you to defer capital gains tax if you reinvest your proceeds into another qualifying property within 45 days (identification period) and close within 180 days (exchange period).
A 1031 exchange doesn't change your net sheet—your proceeds are calculated the same way. But instead of receiving those proceeds directly, they go into a qualified intermediary's account, and you use them to buy another property. This is a powerful tax strategy but requires careful planning, strict adherence to IRS timelines, and the help of a tax professional. If you're considering a 1031 exchange, involve your CPA and a 1031 exchange facilitator before you list.
Sample Net Sheet: $1,000,000 Sale in Simi Valley
Here's a realistic breakdown of proceeds from a $1,000,000 home sale in Simi Valley (Ventura County):
Gross Sale Price: $1,000,000
Deductions: Mortgage Payoff (principal): $650,000 Per Diem Interest (7 days @ ~$65/day): $455 Reconveyance Fee: $75 Listing Commission (2.5%): $25,000 Buyer's Agent Commission (2.0%, negotiated): $20,000 CA Transfer Tax ($1.10/$1,000): $1,100 Ventura County Transfer Tax: $0 (none applies in Simi Valley proper) Escrow and Title Fees: $1,800 Owner's Title Insurance: $450 HOA Transfer Documents: $400 HOA Transfer Fee: $300 Pest Inspection and Report: $150 Section 1 Termite Repair (minor): $2,500 Home Warranty (seller-paid): $600 Documentary Stamp Tax: $1,100 Recording Fee: $30 Property Tax Proration (debit to seller): $800 HOA Dues Proration (debit to seller): $150
Total Deductions: $725,360
Net Proceeds Before Taxes: $274,640
Estimated Federal Capital Gains Tax (married, assuming $800K gain after $500K exclusion, 15% rate): $12,000 (not deducted from proceeds; owed at tax time)
Estimated CA State Tax (13.3% marginal rate): $10,640 (not deducted from proceeds; owed at tax time)
In this scenario, you walk away with roughly $274,640 in hand at close, but you'll owe $22,640 in taxes when you file, reducing your real net to about $252,000. This assumes you have a long-term capital gains situation and qualify for the $500,000 married exclusion.
Sample Net Sheet: $1,800,000 Sale in Thousand Oaks
Here's a comparable breakdown for a higher-price property in Thousand Oaks:
Gross Sale Price: $1,800,000
Deductions: Mortgage Payoff (principal): $900,000 Per Diem Interest (7 days @ ~$90/day): $630 Reconveyance Fee: $75 Listing Commission (2.5%): $45,000 Buyer's Agent Commission (2.0%): $36,000 CA Transfer Tax ($1.10/$1,000): $1,980 Ventura County Transfer Tax: $0 Escrow and Title Fees: $2,500 Owner's Title Insurance: $850 HOA Transfer Documents: $400 HOA Transfer Fee: $300 Pest Inspection: $175 Section 1 Termite Repair: $0 (clean report) Home Warranty: $650 Documentary Stamp Tax: $1,980 Recording Fee: $30 Property Tax Proration (credit to seller): -$500 HOA Dues Proration (credit to seller): -$200
Total Deductions: $988,870
Net Proceeds Before Taxes: $811,130
Estimated Federal Capital Gains Tax (married, assuming $1,300K gain after $500K exclusion, 15% rate): $19,500
Estimated CA State Tax (13.3% on $1,300K): $17,290
Your real net after taxes is roughly $774,340. Notice that at higher prices, commission and transfer taxes are more substantial in absolute dollars, and your capital gains tax bill climbs sharply.
Common Surprises on Seller Net Sheets
California Prepaid Property Tax Credit/Debit: California's property tax fiscal year runs July 1 to June 30. Depending on when you close, you may be owed a property tax credit or owe a debit. This is calculated based on the assessed value and prorated across the fiscal year. Many sellers don't realize this is a line item until they see the net sheet.
HERO/PACE Lien You Forgot About: If you installed solar, replaced your roof, or upgraded your HVAC through a HERO or PACE program, a lien was recorded against the property. Years later, when you sell, that payoff can be substantial and is a surprise if you don't remember the original loan.
HOA Liens for Unpaid Dues: If you've missed HOA payments, a lien may have been recorded. Title search will find it, and it must be paid at close from your proceeds. This is increasingly common as HOA budgets tighten.
Mold or Structural Damage Repair: A pest report that reveals wood rot is one thing. An inspection that finds major mold or structural damage is another. Repair costs can be five figures, and if you're contractually obligated to fix them, your net proceeds take a major hit.
Remaining Loan Balance You Didn't Expect: If your loan balance is higher than you anticipated (you made smaller-than-thought principal payments), your mortgage payoff will be larger, and you'll have less to walk away with. Confirm your loan balance with your lender a month before you list.
Negotiated Buyer Concessions: If you've negotiated buyer concessions (you're paying for a repair, a credit for upgrades, etc.), those appear as deductions. The more concessions you make to close a deal, the smaller your net.
Frequently Asked Questions
Who pays for the transfer tax in California?
By law and custom, the seller pays California's documentary transfer tax. It is rare for a buyer to agree to pay this cost unless there's a specific negotiation. The transfer tax is a deduction from your proceeds.
Can I negotiate the listing commission?
Yes. As of 2026, there is no "standard" commission. The commission is a negotiation between you and your listing broker. Rates typically range from 2–3% for full service, but you should ask for the specific percentage and conditions before you list. Ask if the broker expects you to pay the buyer's agent commission as well.
What is the capital gains exclusion, and do I qualify?
If you're unmarried, you can exclude $250,000 of capital gains on your primary residence. If you're married filing jointly, the exclusion is $500,000. To qualify, you must have owned the home and lived in it as your primary residence for at least 2 of the last 5 years. Consult your CPA to confirm you qualify and to understand your total tax liability.
What happens if the title search finds a lien I didn't know about?
The title company will report it, and it must be cleared at close. If it's a legitimate lien (judgment, tax lien, HOA lien), it will be paid from your proceeds. If it's an error or fraud, you may need to clear it through a quiet title suit, which takes time and money. This is rare, but having title insurance protects you after the sale if something emerges later.
Can I do a 1031 exchange with the proceeds from my home sale?
Only if you're selling investment property (a rental house, commercial building, or land held for investment). Your primary residence does not qualify. If you own investment property, a 1031 exchange allows you to defer capital gains taxes if you reinvest in another qualifying property within strict IRS timelines. Consult a tax professional and 1031 facilitator if this applies to you.
What if I owe more on my mortgage than the house will sell for?
You're in a short-sale scenario. You would need to bring cash to close to cover the shortfall, or negotiate with the lender to accept the loss. Most lenders will not accept a short sale without concessions or proof of hardship. This is a complex situation—consult a real estate attorney and your lender before you list.
Is the net sheet amount what I actually receive?
The net sheet shows your proceeds before federal and state income taxes on capital gains. If you have significant gain, you will owe tax when you file your return the following year. Plan for this with your CPA. The net sheet also does not account for any credits you take for capital improvements or adjustments you make at tax time. It's a closing snapshot, not your final tax position.
What is a reconveyance fee?
A reconveyance fee is a charge from your lender to release the deed of trust once you pay off the loan. It's typically $25–$100 and is a required line item on the net sheet. Each lender will specify this fee in the payoff quote they provide to escrow.
