California Real Estate Purchase Agreements

California requires extensive disclosures including: Transfer Disclosure Statement (TDS), Natural Hazard Disclosure (NHD), Mello-Roos and special tax disclosures, lead-based paint disclosure for pre-1978 homes, earthquake hazard zone disclosure, and seller's supplemental questionnaire. Failure to disclose can result in rescission of the sale or damages.

California documentary transfer tax is $1.10 per $1,000 of sale price (paid by counties). Many cities add their own transfer taxes: Los Angeles ($4.50/$1,000 plus Measure ULA mansion tax of 4-5.5% over $5M), San Francisco (tiered 0.5%-6%), Oakland (tiered 1%-2.5%), and others. Use our California Transfer Tax Calculator for exact amounts.

Standard California PSA contingencies include: inspection contingency (typically 17 days), appraisal contingency, loan contingency (21 days typical), title contingency, and HOA document review for condos. For vacant land, add soil/percolation testing, survey, and zoning approval contingencies.

California does not require attorney involvement in real estate transactions, but having legal review is advisable for complex deals, commercial property, vacant land (water rights, easements), high-value transactions, or when disputes arise. An attorney can identify issues agents may miss and protect your interests.

Failure to disclose known defects in California can result in: rescission of the sale (unwinding the transaction), damages for repair costs and diminished value, fraud claims with potential punitive damages, and real estate license discipline for agents. The buyer typically has 3-4 years to bring claims after discovering the defect.

Typical California residential closings take 30-45 days from accepted offer. Cash purchases can close in 14-21 days. Factors affecting timeline: loan approval, appraisal scheduling, title issues, inspection repairs, and seller disclosure review periods. Commercial and land transactions typically take 60-90 days.

California uses a complex dual water rights system: riparian rights (land adjacent to water sources) and appropriative rights (first in time, first in right). For vacant land purchases, verify: existing water rights documentation, well permits, State Water Resources Control Board records, and any groundwater basin restrictions. Water rights significantly affect land value and usability.

California earnest money (typically 1-3% of purchase price) is held in escrow by a neutral third party. If buyer cancels within contingency periods, deposit is refundable. After contingencies are removed, deposit is at risk. Disputes over deposits are resolved through mediation/arbitration per standard CAR contracts or small claims court.