Buying a home in California implicates a multitude of legal concerns such as the sellers’ required disclosures, title insurance, the terms of the purchase and sale agreement, and the possibility of Mello-Roos taxes. It is important for you to develop a basic familiarity with these concerns before you finalize your purchase.

Seller’s Disclosure Report

California home sellers are required to make a number of disclosures before a home sale is finalized, and these required disclosures are more extensive than the requirements imposed by most other states, including:

●       Natural hazards;

●       Property Taxes;

●       Window security bars;

●       Methamphetamine contamination; and

●       Many, many more.

If the seller fails to make these disclosures or if he reports inaccurate, incomplete, or misleading information, you might have a legal claim against the seller. In almost all cases, this means a lawsuit, not reversal of the transaction.

On the other hand, if the seller’s disclosure is accurate, the fact that a defect in the home was disclosed before the sale was finalized can prevent you from taking legal action against the seller. For this reason if no other, you should read the seller’s disclosures very carefully before you finalize the sale.

Title Insurance

If you own real estate in California, you are required to carry title insurance. Title insurance protects you against anyone who might come along and dispute your title to the property. Suppose, for example, the challenger proves that a mistake in public deed recording proves that the seller who sold the home to you didn’t legally own it and that, as a consequence, neither do you. Title insurance could come in handy under circumstances such as these.

The Real Estate Purchase and Sale Agreement

To transfer title to real estate, you need a written real estate purchase and sale agreement. Although signing a purchase and sale agreement is not enough by itself to transfer title to the house (you must also complete closing formalities), the real estate purchase and sale agreement does obligate the seller to transfer the title to you. An oral agreement to sell real estate is unenforceable under the California statute of frauds.

This real estate purchase and sale agreement must be drafted carefully, and you must make sure you understand its terms. The  seemingly innocuous phrase “time is of the essence,” for example, could be interpreted to mean that the seller can cancel the deal if you postpone the scheduled closing by even 24 hours.

California Mello-Roos Taxes

California Mello-Roos taxes are imposed on the owners of real property located in certain areas. The purpose of the tax is to fund local infrastructure such as streets, sewers, schools, parks, and similar services and facilities. Since only homes located within a  Mello-Roos Community Facilities District are subject to this tax, you will need to know whether your future home is located in one of these districts before you commit to the purchase.

Contact Us Today

Buying a home in California is a complex transaction, and if you try to handle it on your own, you are likely to commit a damaging mistake. Instead of going it alone, contact CKB Vienna by telephone, online, or in person at one of our offices in Rancho Cucamonga, Riverside, and Los Angeles.