Here are some frequently asked questions we get in California when folks are buying and selling real estate -specifically properties that are primary residences.

Q: As a buyer, do I have any particular due diligence (things I have to look into or investigate) before I buy a home?

A: Absolutely! Buyers should review everything they receive from their agents and the seller. This includes: seller disclosures (seller property questionnaire and transfer disclosure statement), termite reports, home inspection reports (especially if you’re in an area where the seller provides this – usually in Northern California), any other reports or statements from the seller, HOA resale disclosure package, preliminary title report (including any easements associated with the property), and property taxes (make sure you check for special tax districts or Mello-Roos).

Q: Are there any other obligations from a buyer, aside from the purchase price?

 A: It depends on what your contract says. If you have contingencies (escape hatches for you to get out of the contract), then you may have other obligations. These obligations could include applying for a loan within a certain amount of time, being approved for a loan within a certain amount of time, or inspecting and clearing any home inspection contingencies before their expiration.

If you go into the contract with no contingencies for financing, appraisal, or home inspection, your obligation is to proceed to closing. There may still be opportunities for you to cancel the contract without forfeiting your deposit.

Q: Do I have to hire an attorney when I buy real estate in California?

A: The short answer is no. California law does not require you to hire an attorney, unlike some other states (Virginia, Illinois, most of New England, New York, to name a few). Most transactions go through a title and escrow company after the buyer and seller have a fully signed contract. The title company researches the title of the property and the escrow company handles the paper and the money part of the transaction - and there is A LOT of paper that is generated during a typical purchase. What the title & escrow company and your agent can’t do, is advise you on what your contract actually means for you (legally speaking), discuss the pros & cons of owning property a certain way, or help you plan for protecting your new home (and your family). 

Have questions about buying a home in California? Check out this blog post about 3 things you need to make you an empowered buyer in California!