Buying & Selling a Home in California: Rules

Most rules on a home sale are state law and apply in every city. A city adds one thing of its own in some places: a transfer tax. The statewide rules come first. The cities that add to them are listed after.

Seller disclosures

Seller disclosures: California state law
Transfer Disclosure Statement (TDS) — who must give it	Sellers of single-family residential property must give the buyer a Real Estate Transfer Disclosure Statement (sale, exchange, installment contract, lease-option or ground lease with improvements) Applies: Exempt transfers include court-ordered and foreclosure sales, transfers by a fiduciary administering an estate or trust, transfers between co-owners, and others listed in § 1102.2. Civ. Code §§ 1102(a), 1102.2
TDS exemptions	No TDS for court-ordered sales (including probate and foreclosure), sales by a trustee or other fiduciary administering an estate or trust, or transfers between co-owners Applies: A trustee of a revocable trust who is a former owner or recent occupant is not exempt. Civ. Code § 1102.2(b), (d), (e)
TDS timing and buyer's right to cancel	Delivered as soon as practicable before transfer of title; if delivered after the offer is signed, the buyer may terminate within 3 days of in-person delivery or 5 days of delivery by mail or electronically Civ. Code § 1102.3
What the TDS is (and is not)	The TDS discloses the property's condition as of its date; it is not a warranty by the seller or any agent and is not a substitute for inspections. Civ. Code § 1102.6 (form text, Stats. 2020, ch. 370, § 25)
Natural Hazard Disclosure Statement (NHD)	Sellers must disclose if the property is in a special flood hazard area, dam inundation area, very high fire hazard severity zone, earthquake fault zone, seismic hazard zone, or wildland fire area Applies: Required when the seller or agent knows, or the local jurisdiction has posted a parcel list or map. Civ. Code § 1103(c)
Agency relationship disclosure	The seller's agent gives the agency disclosure form before the listing agreement; the buyer's agent gives it before the buyer-broker agreement and the offer Civ. Code § 2079.14(a)
Deaths on the property	A seller or agent need not disclose a death that occurred more than three years before the buyer's offer, or that an occupant had HIV or died of AIDS-related complications Applies: A direct question about deaths may not be answered with an intentional misrepresentation. Civ. Code § 1710.2(a), (d)
Smoke alarm at sale	A single-family home sold must have an operable smoke alarm, and the seller must give the buyer a written statement of compliance Applies: Exempt transfers mirror the TDS list (court-ordered, foreclosure, fiduciary, between co-owners, to a spouse or lineal relative). Health & Safety Code § 13113.8(a), (b)
Water heater strapping certification	Water heaters must be braced, anchored or strapped against earthquakes, and the seller must certify this in writing to the buyer Health & Safety Code § 19211(a), (b)
Carbon monoxide devices	Every dwelling unit with a fossil-fuel heater or appliance, fireplace or attached garage must have a listed carbon monoxide device Health & Safety Code § 17926(a)

Transfer tax

Transfer tax: California state law
County documentary transfer tax	A county may tax a sale over $100 at $0.55 for each $500 of value ($1.10 per $1,000), not counting liens that remain on the property Rev. & Tax. Code § 11911(a)
City share of the tax	A city may impose half the county rate ($0.55 per $1,000); the county then credits the city tax against its own, so the combined standard rate stays $1.10 per $1,000 Applies: Applies when the city's tax conforms to the state documentary transfer tax law Rev. & Tax. Code § 11931

Compare cities

Many cities add or share a transfer tax. See every city and county that levies one, with the code section for each →

Cities that add to these rules

These 441 cities have a page with its own rules on top of the state law above. A city page opens only after we check its code.

Who this affects

SellersBuyersReal estate agents

Buying or selling a home in California: the rules that apply

Key points