California Real Estate Transaction Fees

In all California real estate transactions—including buying a home, selling a home and refinancing a mortgage—there are a variety of fees involved. Unfortunately for California homeowners, some companies slip in excessive, unnecessary or illegal real estate fees, often called junk fees. In some cases, the fees cannot be charged at all; in other cases, the fee is legal but the amount being charged is excessive or more than regulations allow. In either case, the homeowner winds up paying more in fees than he or she should pay, which can lead to a California real estate fee lawsuit.

Any real estate transaction that involves a federally-regulated loan—which is around 99 percent of real estate transactions—requires a Housing Urban Development Form One (HUD-1, sometimes also called a 'final settlement statement'). This form is generated immediately upon the closing of escrow and shows what money was paid and to whom it was paid. This includes money that went to the buyer, the seller, the escrow company, the title insurance company and even the messenger.

The HUD-1 can help determine if a California home buyer, seller or someone refinancing their home was charged illegal or excessive real estate fees.


In addition to containing illegal or excessive fees, some real estate transactions violate the Real Estate Settlement Procedures Act (RESPA) by including a kickback or inducement for referrals of business related to a real estate settlement. For example, in some cases, the realtor might recommend a particular title insurance company, real estate attorney or home inspector service. If the realtor received cash, gifts or office furnishings from the title insurance company or other real estate service provider she recommends, there has likely been a violation of RESPA.

Home insurance companies must fill out a Filed Rate Doctrine, on which they list the rate they will charge. If they charge more than the amount listed on the Filed Rate Doctrine, they are in violation of regulations. California homeowner insurance companies cannot charge more than the rate listed on the filed rate doctrine.

A HUD-1 form will show if the insurance company is charging more than it is allowed to charge. California homeowner insurance premiums that overcharge customers are considered California real estate fraud and may result in a California real estate lawsuit.

Depending on the fee being charged, consumers could have paid a few hundred dollars in excessive or illegal fees. Many consumers may not even realize that the real estate fees they paid were either illegal or excessive, and may not have questioned those fees, but if they were charged, the consumer may be eligible to file or join a California real estate fee lawsuit.

If you purchased, sold or refinanced a home in California in the past four years, you may have been charged illegal or excessive real estate transaction fees. Contact a California real estate fraud attorney to discuss your legal options.

California Real Estate Transaction Fees Legal Help

If you or a loved one has suffered similar damages or injuries, please click the link below and your complaint will be sent to a lawyer who may evaluate your claim at no cost or obligation.
Last updated on Dec-21-12