California Real Estate Law
Regulator: California Department of Real Estate
Agency Relationships
- Agents must give a written Agency Disclosure form explaining buyer, seller, and dual agency.
- A dual agent may not disclose one party's price motivation to the other.
- Since 2019, agents representing investor buyers must disclose that relationship to sellers.
Property Disclosures
- Sellers must provide a Transfer Disclosure Statement (TDS) and a Natural Hazard Disclosure (NHD).
- Required natural-hazard disclosures include flood, fire, seismic, and fault-zone (Alquist-Priolo) information.
- Megan's Law database notice and mold, lead, and asbestos advisories are also required.
Contract Nuances
- Most residential sales use the California Association of Realtors Residential Purchase Agreement.
- Either buyer or seller may cancel for specific contingencies (inspection, appraisal, loan) within set timelines.
- Escrow is handled by a neutral third party; closings do not require an attorney.
Closing & Costs
- Closings are handled by independent escrow companies or title-company escrow desks. No attorney is required.
- Local custom varies by region: in Northern California the buyer typically pays for the owner's title policy, while in Southern California the seller usually pays. Escrow fees are commonly split.
- California has a documentary transfer tax (state + many counties + some cities). San Francisco and Los Angeles add the largest local transfer taxes in the US.
- Property taxes are billed semi-annually and prorated at closing under Proposition 13's assessed-value rules.
- Most California closings disburse funds the same day they record — confirm timing with your escrow officer.
Buyer-Agent Compensation (post-2024)
- Since August 17, 2024, multiple-listing services (MLS) can no longer publish offers of buyer-agent compensation. Sellers may still choose to pay a buyer's agent, but it is now negotiated separately and disclosed off-MLS.
- Buyers must sign a written representation agreement with their agent before touring a home. The agreement must state how the agent is paid and how much. Read it carefully — the fee is between you and your agent now, not automatically covered by the seller.
- If you are buying, ask whether the seller is offering to pay your agent's commission, who else might pay it, and exactly what services are included.
- If you are selling, you are no longer required to offer a buyer's agent commission. Your listing agent should explain the trade-offs of doing so anyway.
Tenant & Landlord Rights
- Security deposits are regulated; landlords must return them within a set number of days after move-out.
- Evictions require proper written notice and, in most cases, a court order.
- Retaliation against tenants who exercise legal rights is prohibited.
Educational information only. Not legal advice. Laws change; verify with the official sources above or consult a licensed attorney.