Pacific Grove · Buying & selling

Buying or selling a home in Pacific Grove

Pacific Grove has its own transfer tax on property sales; seller disclosures and property tax follow state law. Under state law, sellers of single-family homes give buyers a Transfer Disclosure Statement, and a purchase resets the assessed value.

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Key points

Transfer tax: The city tax is $0.55 per $1,000 on sales over $100, owed by whoever signs the transfer document or benefits from it.
Seller disclosures: State law: sellers of single-family homes owe buyers a Transfer Disclosure Statement, with listed exemptions such as foreclosure and court-ordered sales.
Property tax: State law: the general tax is at most 1% of value plus voter-approved debt; value resets on purchase, then rises at most 2% yearly.

Each rule below is marked Pacific Grove code or CA state law and links to the section it comes from (checked October 2026). General information, not legal advice.

Transfer tax

Pacific Grove code What Pacific Grove's code adds
City transfer tax	Yes. The city taxes each deed or document that transfers real property sold in the city. § 7.30.020 · code text There is imposed on each deed, instrument or writing by which any lands, tenements, or other realty sold within the city of Pacific Grove shall be granted, assigned, transferred or otherwise conveyed
Rate	$0.275 for each $500 of value, or part of $500. § 7.30.020 · code text a tax at the rate of $0.275 for each $500.00 or fractional part thereof.
Rate per $1,000	$0.55 per $1,000 of value. § 7.30.020 · code text a tax at the rate of $0.275 for each $500.00 or fractional part thereof.
Price threshold	The tax applies only when the price or value is more than $100. Applies: Liens or encumbrances that remain on the property at the time of sale are not counted in the value. § 7.30.020 · code text when the consideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrances remaining thereon at the time of sale) exceeds $100.00
Rate depends on price	No. The rate does not change with the sale price. § 7.30.020 · code text a tax at the rate of $0.275 for each $500.00 or fractional part thereof.
Who pays	Any person who makes, signs or issues the taxed document, or for whose benefit it is made. § 7.30.030 · code text Any tax imposed pursuant to PGMC § 7.30.020 shall be paid by any person who makes, signs or issues any document or instrument subject to the tax, or for whose use or benefit the same is made, signed or issued.

CA state law Underneath, California law still applies. 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 (Rev. & Tax. Code § 11931). California rules for buying and selling — the full state rule →

Seller disclosures

CA state law California law sets this statewide. 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) (Civ. Code §§ 1102(a), 1102.2). 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 (Civ. Code § 1103(c)). California seller disclosure rules — the full state rule →

Property tax after you buy

CA state law California law sets this statewide. 1% property tax limit (Prop 13): The general property tax on real property may not exceed 1% of its full cash value; voter-approved bond debt is levied on top (Cal. Const. art. XIII A, § 1(a), (b)). 2% annual cap on assessed value: The base year value rises each year by the California CPI change, but never more than 2% (Rev. & Tax. Code § 51(a)(1)(D)). California property tax rules — the full state rule →

Sewer lateral inspection

Pacific Grove code What Pacific Grove's code adds
Deadline to comply	Within 60 days of city notice. Applies: Applies to inspection and testing work when no specific deadline is set. § 9.20.040 · code text In the absence of a specific deadline, all inspection and testing work shall be completed within 60 days of notification by the city that such inspection is required. Within 60 days of city notice. Applies: Applies to repair or replacement work when the public works director sets no specific deadline. § 9.20.040 · code text In the absence of a specific deadline established by the director of public works, all repair or replacement work shall be completed within 60 days of notification by the city that such repair or replacement is required.
Fee or permit	A building permit, and an encroachment permit if needed, are required. Applies: Applies when the lateral is found defective and must be repaired. § 9.20.040 · code text if found defective, the property owner shall obtain a building permit and (if applicable) an encroachment permit and thereafter repair the lateral
When an inspection is required	When building a new structure on a lot with an existing lateral, or connecting a new structure to one. Applies: Applies to new structures or new connections to an existing lateral. § 9.20.040 · code text When building a new structure on property with an existing lateral, or when otherwise proposing to connect a previously unconnected structure to an existing lateral; As a condition of approval for any major remodel. Applies: Applies to major remodels the city estimates at $50,000 or more. § 9.20.040 · code text As a condition of approval of any major building remodel project. A major building remodel project is one that is estimated by the city to cost $50,000 or more; Before close of escrow. Applies: Applies when property is sold or ownership is otherwise transferred by deed or writing. § 9.20.040 · code text Prior to the close of escrow when the property is transferred via sale or other transfer of ownership by deed, instrument or writing; When the city finds a lateral overflow reached public property or another owner's private property. Applies: Applies when sewage from a lateral reaches public property or another owner's land. § 9.20.040 · code text Whenever the city finds that a sewage overflow emanating from a lateral has reached public property, including but not limited to a city street or the city storm drain system, or has flowed onto private property owned by another property owner; When the city finds a lateral overflow threatens public health. Applies: Applies even if the sewage has not crossed a property line. § 9.20.040 · code text Whenever the city finds that a sewage overflow emanating from a lateral presents a threat to public health, even if it has not flowed across a property line. The city may order the owner to inspect the lateral. Applies: Applies when the city knows or reasonably suspects a defect, including during sewer main work. § 9.20.040 · code text The city may order the property owner to conduct an inspection, repair or replacement of any lateral that the city knows or reasonably suspects to be defective.
How long a certificate lasts	No inspection is needed on sale for 10 years after a full replacement. Applies: Applies to laterals fully replaced under a valid building permit and any needed encroachment permit. § 9.20.040 · code text the property owner is not required to inspect the lateral upon sale of the property for 10 years following the date of complete replacement of the lateral.
Owner's responsibility	Owners must inspect and report results to the city; if defective, they get permits and repair the lateral. Applies: Applies at new construction or connection, remodels of $50,000 or more, sale or transfer, or overflows reaching others or threatening health. § 9.20.040 · code text Property owners shall inspect, and provide to the city a report of the results of an inspection of, the laterals on their property prepared by a licensed plumber using closed circuit television (CCTV) inspection or other inspection or test method approved by the director of public works, and if found defective, the property owner shall obtain a building permit and (if applicable) an encroachment permit and thereafter repair the lateral, as follows: The owner repairs or replaces the lateral at the owner's sole cost. Applies: Applies whenever a defective lateral is found. § 9.20.040 · code text Whenever defective laterals are found, the property owner, at the sole expense of the property owner, shall repair or replace the lateral.

Who this affects

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Frequently asked questions

What is the transfer tax when you sell a home in Pacific Grove?

The city tax is $0.55 per $1,000 on sales over $100, owed by whoever signs the transfer document or benefits from it.

Does Pacific Grove require a sewer lateral inspection when you sell a home?

Pacific Grove's code: Within 60 days of city notice. (Applies to inspection and testing work when no specific deadline is set.) (§ 9.20.040); Within 60 days of city notice. (Applies to repair or replacement work when the public works director sets no specific deadline.) (§ 9.20.040).

General information, not legal advice.

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