Understanding California Real Estate Laws: A Comprehensive Guide

This article provides an overview of California real estate laws and regulations. It covers topics such as mandatory disclosure when financing real estate, fraud statutes, double agency laws and more.

Understanding California Real Estate Laws: A Comprehensive Guide

The 29 codes that make up California law are available on the official website for legislative information.

Real estate

law governs the purchase, use, and sale of land in the Golden State. It determines how people can buy land and what they can do with it. If you fail to reveal defects or lie about the condition of a property, a buyer can sue you if they encounter problems after a real estate transaction has been closed.

When it comes to mandatory disclosure when financing real estate, the lender is required to provide information about any anticipated charges, a notification of the transfer of loan servicing, and the borrower's right to receive a copy of the appraisal report. For investors and real estate owners, it means that they can't inflate prices by more than 10% during that time. Some of the agreements included in the Fraud Statute include real estate purchase agreements, property exchanges, leases that last longer than one year, and property transfer agreements. This law prevents foreclosure of a person's primary place of residence if the underlying lien on the residence is based on unsecured consumer debt. Under the new law, any provision of a governing document “that prohibits, has the effect of unjustifiably prohibiting or restricting the rental of any of the separate interests, accessory housing units (“ADU”) or accessory housing units for young people (“JADU”) of a community association is unenforceable.

This law states that appraisers are exempt from the ABC test to determine their status as independent contractors or employees. Not only do these real estate laws protect tenants and homeowners in times of economic uncertainty, but they also help preserve regulations related to leasing, housing, zoning, planning, and everything in between. If you own real estate in California (or are in the process of purchasing property), many laws will dictate your rights and responsibilities as a landowner. Whether you only own your personal residence or several properties as an owner, you should be aware of California property and real estate laws that dictate your actions when buying, selling, renting, or owning such land. Under California real estate law, property that remains unclaimed for three years becomes the property of the California government.

In accordance with Golden State real estate laws, all housing units need a minimum of one smoke detector outside of each sleeping area. States such as Alaska, Colorado, Florida, Texas and Wyoming prohibit double agency, which occurs when the buyer and seller in a real estate transaction are represented by the same real estate agent or agent. This is legal in California but should be avoided as it creates a conflict of interest for the agent. It is important to understand these laws so that you can make informed decisions when buying or selling real estate in California. Knowing your rights and responsibilities as a homeowner or investor is essential for protecting yourself from potential legal issues down the line.

Preston Morand
Preston Morand

Infuriatingly humble tv fan. Social media aficionado. Hardcore music ninja. Incurable pop culture fanatic. Award-winning zombie aficionado.

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