Question 1

What does a San Francisco double close actually cost in transfer tax?

Accepted Answer

The tax applies to the entire price on each recorded conveyance, so a double close pays it twice. The City and County of San Francisco taxes real property transfers on a tiered schedule, and sf.gov states each bracket against the whole consideration, not the amount above the threshold. On a $1,200,000 house, the A-to-B and B-to-C legs each fall in the $1,000,000 to $4,999,999 bracket at 0.75%, roughly $9,000 per leg, about $18,000 total, before either side's other closing costs. Price your assignment fee with both legs' tax in mind, not just one. If you're the one taking the assignment to rehab and resell rather than pass it along, see San Francisco fix and flip terms.

Question 2

Do I need a California real estate license to wholesale a San Francisco deal?

Accepted Answer

California has no wholesaling-specific statute, so the license question turns on the general broker definition. Business and Professions Code section 10131 requires a DRE license to act for another person, for compensation, in selling real estate or negotiating a loan. Industry sources describe assigning your own equitable interest in a purchase contract as acting for yourself, which stays outside that definition, while marketing the property itself, rather than the contract, is the conduct that crosses into brokerage. No DRE guidance document confirms that reading, so treat it as the industry position, not settled law, and have a California real estate attorney review your contract and marketing language before you rely on it. We're a lender, not counsel.

Question 3

Can I skip the second transfer tax by assigning the LLC that holds the contract instead of closing twice?

Accepted Answer

No. San Francisco taxes entity transfers on the same schedule as a recorded deed. sf.gov states the transfer tax reaches transfers involving legal entities that own San Francisco real property and is due when those entities change control, and that leaseholds of 35 years or more are taxed the same way. What counts as a change of control, and whether any minimum ownership shift triggers it, is fact-specific, so treat the rule as binding and ask your title company or attorney how it applies to your specific structure before you build a deal around avoiding a second recording. See our CRE bridge loans for larger San Francisco transfer-tax questions.

Question 4

Who runs escrow on a San Francisco double close, an attorney or a title company?

Accepted Answer

Neither closing needs an attorney; California is an escrow state, and in Northern California the title insurance company typically runs the escrow itself. That is the general Northern California practice, not a rule written for double closings specifically, and we could not source a San Francisco-specific double-close escrow or funding custom. Ask your title company in writing how it sequences funding and disbursement between your A-to-B and B-to-C closings before you commit to a same-day date.

Question 5

Do I need a down payment to fund the A-to-B leg in San Francisco?

Accepted Answer

No. We fund up to 100% of the purchase price on the A-to-B leg. The loan is repaid the same day out of your B-to-C resale, so there is no down payment on the acquisition itself. What you do still need is cash for closing costs on both legs, and in this city that includes the transfer tax twice, once per recorded conveyance. On a $1,200,000 house each leg falls in the 0.75% bracket, roughly $9,000 a leg. Underwrite your spread net of both. Subject to underwriting.

Question 6

How is transactional funding priced on a San Francisco double close?

Accepted Answer

A flat fee, not an interest rate. The money is out for days, not weeks, so there is no rate to amortize and no long carry to model. Put the flat fee next to the two transfer tax hits and your title and escrow costs, and that is the full cost side of the A-to-B leg. Both closings have to be scheduled to fund and disburse in sequence, so confirm that sequence with your title company in writing before you set the date. Subject to underwriting.

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