Important Notice for California Applicants
Before buying or selling a house, it’s vital to be conscious of the real estate laws in California. From taxes to disclosure agreements, there are several key factors to keep in mind for every real estate transaction to proceed smoothly.
For Buyers
California is a buyer-friendly state and its laws are no different.
1. Buyers and sellers are not required to meet in person.
As a buyer, you may never physically meet the seller of the property you are trying to acquire. Parties are typically represented by real estate agents who will communicate on behalf of their clients.
2. Buyers are not required to hire an attorney.
Although some states require buyers to hire an attorney to represent their interests, doing so is not necessary in California. You and your broker will use the standard form, referred to as the Residential Purchase Agreement and Joint Escrow Instructions, to make the offer. You will have to complete the form and have an attorney review it. If the seller accepts your offer, they will sign the form, and it will serve as the final agreement.
3. Both parties can be represented by a dual agent.
California law states that sellers and buyers may hire the same real estate broker to represent both parties. This is called a dual agency relationship. As long as the buyers and sellers consent in writing to have the same agent represent them, they are permitted to do so.
For Sellers
If you are selling a property, following protocol is essential to your sale’s success.
1. Sellers are required to disclose everything that might affect the desirability of the property.
California law dictates that all sellers are to disclose in writing every detail about the property that may affect its desirability. These important details about the state of the property are called material facts, and any seller who fails to disclose them will face legal penalties.
2. Sellers are required to use a title company and pay for the buyer's title insurance.
When selling a home in California, a title company will conduct a title search, write a Preliminary Title Report, and provide title insurance to the buyer, which will be paid by the seller.
3. Sellers must use an escrow agent.
Both the buyer and seller in California must use escrow agents to handle all transactions and facilitate the sale. The buyer will deposit the payment in escrow, and the seller will deposit the deed in the same way. The escrow agent or company will hold onto it until all agreements are satisfied and the transaction is final, during which they will transfer the payment to the seller and the deed to the buyer.
If you are a buyer or seller in California, I will provide the easiest and most hassle-free transaction process for every property. Contact me today.