If you live in the beautiful state of California, it is important that you are aware of the state’s important real estate laws that will most likely affect you since you live in the state. These apply to people who are selling properties and people who are buying properties. There are many state regulations that apply to all sorts of real estate scenarios. Some of those regulations apply to you if you are buying a home for yourself and others apply if you are buying a property with the intention of renting it to someone else.
Real estate laws and regulations are designed to protect homeowners and tenants in difficult times as well as in times that are not difficult. The laws help to make everything run smoothly and cover anything and everything connected to real estate in California.
Rules and regulations that are important for Californians
There are several laws that affect residents of California. They are as follows:
- Escrow agent is required: If you want to sell a home, an escrow agent is necessary to make the sale go through. Once the buyer deposits the escrow money in the account, the seller will deposit the deed to the property and the escrow company will hold onto those items to keep them safe. Once the escrow’s requirements are met, the escrow agent will transfer the funds to the seller and will transfer the deed to the buyer.
- Suing for fraudulent misrepresentation if the seller concealed some issue on the property: When the buyer files the lawsuit, the attorney will interview the relevant people to determine whether the buyer intentionally concealed the information or was unaware that there was an issue.
- When a property is being sold: In the state of California, when the property is being sold, the title company will do a title search and will issue a preliminary title report, or a PTR. The title company will issue insurance to the buyer based on what is written in the PTR.
- Transfer tax: When a property is sold in California, there will be a transfer tax that is imposed by the county. There are times when the city also imposes a transfer tax. This is a tax that exists because the property is being transferred from the seller to the buyer.
- Lead paint and potential risks: In California, it is the law that the buyer of a property must be informed if the property contains lead paint and they must also be notified about the potential risks involved. It is the responsibility of the real estate agent to give the buyer full documentation of the history of paint on the property. The law also mandates that a state-accredited inspection must occur.
- Smoke detectors: It is a law in California that all residential properties must have at least one smoke detector outside of each sleeping area. Either the seller or the real estate agent must produce written evidence of the smoke detectors.
- Window safety bars: It is the law that either the seller or the real estate agent must provide information that the property has window security bars. It is also the law that the real estate agent of the seller must inform the buyer about how to remove them and also to mention any other safety mechanisms that exist on the property.
- Physical condition of the home: The seller is obligated to disclose the ownership and physical condition of the home. The details include information on property tax, military artillery locations in the vicinity, working condition of all of the appliances in the home, and the presence of lead-based paint.
- Relationship between the real estate agent and the seller: It is the responsibility of the real estate agent to disclose to the buyer what the relationship is between the agent and the seller, to disclose any commissions, and any information on the price of the sale of the property. The law also mandates that any information about a death on the property over the last three years must be disclosed to the buyer as well as advising them to consult the national registry for where sex offenders live in the vicinity of the property.
- The right to cancel: Buyers have the right to cancel the sale agreement whenever they wish if information that should be disclosed has not been.
Consulting a knowledgeable attorney about real estate law
If you are in the process of buying or selling a property in California, consulting an experienced California attorney may make your experience much easier and much smoother. The attorney can walk you through the process and can ensure that your rights are protected at the same time so that your investment is safeguarded.
