Selling a home in California

Transfer tax

California law lets counties charge a documentary transfer tax of $0.55 per $500 of value (Revenue and Taxation Code section 11911), about 0.11% of the price, and cities may charge half that amount, credited against the county tax. In southern California the seller usually pays the county transfer tax; customs vary by county in northern California, and the purchase agreement controls.

Local add-ons: The tax is levied by counties under state law. Cities may add half the county rate, and some charter cities set their own, often much higher, transfer taxes.

Source: California Revenue and Taxation Code section 11911

Seller disclosure

California requires sellers of one-to-four unit residential property to give buyers a written Real Estate Transfer Disclosure Statement (Civil Code sections 1102 to 1102.19). The requirement cannot be waived by agreement in a standard sale; waivers are void as against public policy.

Source: California Civil Code section 1102

Who handles the closing

California sales close through escrow rather than with attorneys. In northern California title companies almost always handle escrow, while in southern California a separate escrow company and title company are usually involved.

Source: California Department of Real Estate, Surviving the Real Estate Escrow Process in California

Also worth knowing

If the transfer disclosure statement is delivered after the buyer signs an offer, the buyer may cancel within 3 days of in-person delivery or 5 days of delivery by mail or electronically (Civil Code section 1102.3).

Source: California Civil Code section 1102.3

Also worth knowing

Sellers must also disclose whether the home lies in a mapped flood hazard area, very high fire hazard severity zone, state wildland fire area, earthquake fault zone or seismic hazard zone (the Natural Hazard Disclosure, Civil Code section 1103).

Source: California Civil Code section 1103

Also worth knowing

Escrow generally withholds 3 1/3% of the sales price for California income tax (or an alternative amount based on gain) unless the seller certifies an exemption on FTB Form 593, such as the home qualifying as the seller's principal residence.

Source: California Franchise Tax Board, Form 593 Real Estate Withholding Statement (2025)

Checking an agent's license

Real estate agents in California are licensed by the California Department of Real Estate. You can look up any agent before you work with them.

California Department of Real Estate license lookup