State guide

Buying or Selling a Home in California: What You Need to Know

California has some of the most consumer-protective real estate laws in the country, with detailed disclosure rules, strict agency duties, and many state-specific forms layered on top of federal requirements.

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TL;DR

California has some of the most consumer-protective real estate laws in the country, with detailed disclosure rules, strict agency duties, and many state-specific forms layered on top of federal requirements. Sellers must give buyers a long list of written disclosures about the home, and agents must explain in writing who they represent before you sign anything important. New rules after the 2024 settlement also changed how buyers and their agents talk about pay, so most buyers now sign a written agreement with their agent before touring homes.

10 things every California buyer or seller should know

  • California requires sellers of most 1-4 unit homes to give buyers a written Transfer Disclosure Statement (TDS) that lists known problems, repairs, and neighborhood issues with the property, and this disclosure cannot be waived in advance.

  • Sellers must also give buyers a Natural Hazard Disclosure (NHD) that flags six state-defined risks: FEMA flood zones, state dam-inundation areas, very high fire hazard zones, state-responsibility wildland fire areas, earthquake fault zones, and seismic hazard zones.

  • Every California agent must give you a written Agency Disclosure (Form AD) explaining who they represent before you sign a listing agreement (if you are a seller) or before you sign an offer (if you are a buyer), so you know whether they are working for you, the other side, or both.

  • Dual agency, where one brokerage represents both the buyer and seller in the same deal, is legal in California but only with written informed consent from both sides; you do not have to agree to it and can ask for separate representation.

  • After the August 2024 NAR settlement, any agent who is an MLS participant must have a signed written buyer-broker agreement with you before showing you a home, and the agreement must state in writing how much that agent will be paid.

  • Buyer-side commissions can no longer be advertised on the MLS in California, but a seller can still offer to pay the buyer's agent through an off-MLS arrangement documented in a Seller Payment to Buyer Broker (SPBB) addendum.

  • Homes in a homeowners association (HOA), condo, or planned development trigger an extra package of seller disclosures under Davis-Stirling (Civil Code §4525), including CC&Rs, budgets, reserves, insurance summary, meeting minutes, and any pending litigation.

  • If a home is inside a Mello-Roos community facilities district or 1915 Act assessment district, the seller must make a good-faith effort to deliver a special tax notice showing the amount, the year it ends, and what the money pays for (often schools, roads, or utilities in newer developments).

  • On every California home sale, the seller must certify in writing that smoke alarms and carbon monoxide alarms are installed and working as required, and that the water heater is anchored and strapped to resist earthquake movement.

  • California's Fair Employment and Housing Act protects far more groups than federal law, including source of income (such as Section 8 housing vouchers), sexual orientation, gender identity, age, immigration status, military or veteran status, and primary language.

The guides

Common questions

Do I have to sign an agreement with a buyer's agent in California before they show me homes?
Yes. Since August 17, 2024, any agent who participates in the MLS must have a signed written buyer-broker agreement with you before you tour a home. The agreement, usually CAR's Buyer Representation and Broker Compensation Agreement (BRBC), spells out the scope (one home, one area, or statewide), how long it lasts, and how the agent gets paid. You can negotiate the term, the area, and the compensation before signing.
Can the seller still pay my buyer's agent in California?
Yes, sellers can still offer to pay the buyer's agent, but the offer can no longer be advertised on the MLS. Instead, it is communicated off-MLS and documented through CAR's Seller Payment to Buyer Broker (SPBB) addendum, or as a closing-cost concession the buyer applies to their agent's fee. This setup is still common in California because it matches how buyers expected the process to work.
What disclosures should I expect to receive as a buyer in California?
Expect a Transfer Disclosure Statement (TDS) from the seller about known property issues, a Natural Hazard Disclosure (NHD) covering flood, fire, and earthquake risks, a Megan's Law notice, and lead-based paint information for any home built before 1978. If the home is in an HOA, you will also get a Davis-Stirling document package; if it is in a Mello-Roos district, you will get a special tax notice. You typically have a contractual review period to read these and decide whether to keep moving forward.
What is the standard contract used to buy a home in California?
Most California home sales use the California Association of Realtors Residential Purchase Agreement and Joint Escrow Instructions, known as the RPA-CA. It is not required by law, but it is by far the most common form. It sets default contingency timelines for inspection (usually 17 days), the loan (usually 21 days), the appraisal (usually 17 days), and title review, all of which are negotiable.
Does my agent inspect the property too, or only the seller and a home inspector?
California agents on 1-4 unit home sales have a legal duty under Civil Code §2079 to do a reasonably competent visual inspection of the accessible areas of the home and disclose anything they see that materially affects value or desirability. This is documented on CAR's Agent Visual Inspection Disclosure (AVID). It is not a replacement for hiring your own home inspector, who looks much more deeply at systems and structure.
What does a California seller have to fix or certify before closing?
Sellers must certify in writing that smoke alarms are installed in each bedroom, just outside sleeping areas, and on every floor, and that carbon monoxide alarms meet state requirements. They must also certify that the water heater is properly braced or strapped to resist earthquakes. Sellers cannot pre-emptively waive the Transfer Disclosure Statement and must complete it in good faith about known property conditions.
Will I owe California taxes when I sell my home?
When you sell California real estate, the buyer or escrow may have to withhold state tax under Revenue and Taxation Code §18662, reported on FTB Form 593. The default withholding is 3 1/3% of the gross sales price, though sellers can elect an alternative calculation based on estimated gain. Common exemptions include a principal residence sale meeting the federal capital-gains exclusion, a sale at a loss, and certain like-kind exchanges; you claim them on Form 593 at closing.
Can a landlord or seller refuse my offer because I use a Section 8 housing voucher?
No. Under SB 329, effective January 1, 2020, California added 'source of income' to its list of protected classes under the Fair Employment and Housing Act, and the definition explicitly includes federal, state, or local housing subsidies like Section 8. Landlords and their agents must treat the voucher as part of income when applying screening rules such as 'three times the rent.' Refusing to rent because of a voucher is housing discrimination.
What if the same brokerage represents both me and the other side of the deal?
That is called dual agency, and California allows it for 1-4 unit homes only if both you and the other party give written informed consent. The dual agent owes loyalty to both sides but cannot share confidential price or motivation information from one side with the other without permission. You always have the right to say no and ask for an agent who represents only you.
How do I know my California real estate agent is properly licensed?
California licensees must include their full licensed name and their DRE license ID number on business cards, yard signs, flyers, websites, social posts, and email signatures under Business and Professions Code §10140.6. You can verify any agent's license, current status, and discipline history for free on the California Department of Real Estate (DRE) public lookup. If an agent will not give you a license number, that is a red flag.

Glossary

2 terms
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.