Frequently asked questions

Buyers and sellers each pay their own closing costs, and the split can be negotiated in the purchase agreement. Buyers usually pay loan fees, their share of escrow and the lender's title policy. In Southern California the seller often pays the owner's title policy and the county documentary transfer tax. Check the figures on your escrow estimate before you sign.

Commissions are negotiable and are not set by law. The seller agrees on the listing-side fee in the listing agreement, and buyer-side compensation is agreed in writing with the buyer's agent. A seller may offer to cover part of it, but that is also negotiated. Ask for every fee in writing before you sign.

A pre-approval is a lender's written statement of how much it is prepared to lend you after reviewing your credit, income and assets. Most sellers expect one with an offer. It is not a final loan commitment; the appraisal and underwriting come later, so get pre-approved before you start making offers.

California sellers complete a Transfer Disclosure Statement and a Natural Hazard Disclosure, plus other disclosures that apply to the property, such as HOA documents for a condo or a lead-based paint disclosure for homes built before 1978. We help you gather them before the home goes on the market.

If the home was your main residence for at least two of the last five years, you may be able to exclude up to $250,000 of gain, or $500,000 for married couples filing jointly, under the federal home sale exclusion. Gains above that, and gains on rentals or second homes, may be taxable. Ask a CPA or tax advisor about your situation.

A listing agreement puts the brokerage's duties, the fee, the term and the marketing plan in writing. Before you sign, check the length of the term and whether the listing is exclusive.

Under California law in effect since July 1, 2024, most landlords may collect a security deposit of no more than one month's rent. Some small landlords may collect up to two months. Confirm the current rule before you sign a lease.

Many California rentals fall under the statewide rent cap, which limits yearly increases to 5% plus local inflation, with a 10% maximum. Some homes are exempt, including many single-family homes owned by individuals and buildings less than 15 years old. Ask whether the unit is covered before you sign.

In most leases we handle, the owner pays the leasing fee. Applicants usually pay a screening fee, which California caps and adjusts each year. Ask about every fee before you apply; we state ours before the showing.