California real estate law requires a seller to provide potential buyers a written disclosure about the home. These details can change the buyer’s desire to purchase the home or decrease the price they are willing to pay. In real estate law, these facts are called “material” facts.
The material facts included in the Transfer Disclosure Statement (TDS) describe the condition of the house such as the:
8. Other structural components
These important key rules in California can make selling a home a problem for many people who are in distressed properties. It’s one reason why many Californians choose “sell my house fast” alternatives such as a cash for homes company. These companies of buy properties in distress, back taxes or other issues. Here are some other key legal requirements when selling a home in California.
Sellers Must Use an Escrow Agent
In California an escrow agent is often used to assist with a real estate sale. The buyer deposits money into an escrow account. A seller places the deed into the escrow account. The escrow company is responsible for holding the money and deed for safekeeping until the sale is complete. However, a seller can’t force a buyer to use one escrow agent over another to complete the house sale.
Sellers May be Responsible for Paying Title Insurance for Buyers
Whenever a person in California sells their property, a title company conducts a title search. The company then writes a Preliminary Title Report. Based on this report, the title company will provide the buyer with title insurance. Who pays the title insurance varies by the California county? Both parties may decide to split the insurance payment. In Southern California area, a seller typically pays the title insurance, not the buyer. In Northern California, the buyer is responsible for paying the title insurance payment.
Californians Selling Their Homes May Need to Make a Transfer Tax Payment
When a property is purchased, the sale is recorded at the county recorder’s office. This means the seller may pay a tax called a transfer tax. Who pays the tax is negotiable? However, industry standard dictates that Southern California sellers are responsible for the transfer tax. Northern California buyers are responsible for paying the transfer tax.
Selling a Home for Cash in California
Selling a house for cash is an alternative to dealing with title insurance payments, transfer taxes and real estate agents. Selling a property in the state can be difficult depending on the condition of the house or type of mortgage. However, it can be even more difficult during a housing crisis. Many homeowners may decide to forego the traditional way of selling their homes for a cash offer and fast purchase. Regardless of the decision, it’s important to know the key legal requirements in California when selling property.