California Real Estate Law

Residential sellers of real estate are required to disclose any material defects concerning the home they sell to a buyer. What does material defect mean? It means any defect that would affect the value of the home or influence a reasonable buyer’s decision on whether or not to purchase the home. An agent advising a seller on what to disclose should advise: if there is the slightest chance that something could be an issue, disclose it. California Civil Code § 1102; Mandatory Transfer Disclosure Statement (“TDS”).

Real estate agents are required to conduct a visual inspection of the residential property and provide it in writing to the parties in a standardized form labeled the Agent Visual Inspection Report (“AVID”). California Civil Code §2079.

Earnest Money Deposit (EMD) law and contract terms require a buyer or seller to release the EMD funds to the other party when they have breached the Real Estate Purchase Agreement (RPA). Holding on to the EMD in bad faith exposes the party in bad faith to damages, attorney fees, and cost of litigating or arbitration.