Documentary transfer tax is the state and county tax imposed on real estate transfers. For LA multifamily, typical combined rate: approximately 0.56% (LA City + LA County). Separate from Measure ULA.
California state transfer tax: $0.55 per $500 of value (0.11%). LA County additional: $0.55 per $500 ($0.11%). LA City additional: $4.50 per $1,000 for most transactions ($0.45%). Combined LA City: roughly 0.56%. Paid at recording.
For LA multifamily sellers, documentary transfer tax is a routine closing cost of roughly 0.56% of sale price — plus Measure ULA's additional 4-5.5% on LA City sales above $5M. On a $6M LA City sale: documentary transfer ~$34,000, Measure ULA $240,000, combined roughly $274,000.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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