Selling a house in California — especially in the San Francisco Bay Area — means navigating a thicker layer of disclosure rules, point-of-sale ordinances, and tax law than almost anywhere else in the country. This guide explains ten of the laws that most often surprise sellers, in plain English, with the exact statute and an official source for each. It is built for homeowners, executors, and the attorneys and agents who advise them.
Quick-reference table
| Topic | Law / citation | What it requires (plain English) | Where it applies |
|---|---|---|---|
| Seller disclosures (TDS) | Cal. Civ. Code §1102 et seq.; §1102.1 | Written disclosure of the home’s known condition; cannot be waived even in an “as-is” sale | Statewide, 1–4 residential units |
| Fire-zone & defensible space | AB 38 → Civ. Code §1102.6f & §1102.19 | Extra disclosures + proof of defensible-space compliance in high/very-high fire zones | Statewide fire hazard severity zones |
| Inherited-property tax | Proposition 19 (Cal. Const. art. XIII A) | Inherited homes are reassessed unless an heir moves in and value stays under the cap | Statewide |
| Rent control & just cause | Costa-Hawkins (Civ. §1954.50) + AB 1482 (Civ. §1946.2, §1947.12) | Caps rent increases and requires “just cause” to end most tenancies of 12+ months | Statewide (plus stricter local rules) |
| Insurance availability | California FAIR Plan | Insurer of last resort; if a home can’t be insured, most buyers can’t get a mortgage | Statewide, high-risk areas |
| San Jose soft-story retrofit | San Jose Municipal Code (soft-story ordinance) | Older wood-frame multi-unit buildings must be screened and seismically retrofitted | City of San Jose |
| Berkeley BESO (point of sale) | Berkeley Municipal Code Ch. 19.81 | Energy score plus minimum upgrade “credits” (or an escrow deposit) to close a sale | City of Berkeley |
| East Bay sewer lateral | EBMUD Regional Private Sewer Lateral Ordinance | Compliance certificate that the private sewer line is leak-free, triggered by sale | 8 East Bay jurisdictions |
| Unpermitted ADUs | AB 2533 → Gov. Code §66332 | Amnesty path to legalize pre-2020 unpermitted ADUs/JADUs without most penalties | Statewide |
| Oil tanks / old wiring & pipes | Insurer & lender underwriting (not a single statute) | Buried oil tanks, knob-and-tube wiring, galvanized pipe can block insurance and financing | Statewide (older homes) |
Do I have to give a disclosure statement if I sell my house “as-is” in California?
Yes. California requires the seller of most 1–4 unit homes to give the buyer a written Real Estate Transfer Disclosure Statement (TDS) describing the property’s known condition. Selling “as-is” does not waive this duty — Civil Code §1102.1 states the TDS “may not be waived in an ‘as is’ sale.” “As-is” means you won’t make repairs; it does not let you hide a known defect. Court-ordered transfers (probate, foreclosure, bankruptcy-trustee sales) are exempt.
Citation: Cal. Civ. Code §1102 et seq.; §1102.1. If your concern is the cost or hassle of repairs, this is one of the situations a cash buyer can close around — purchasing a house as-is while you still complete the required disclosures.
What fire-zone disclosures does California require when selling a home?
If your home sits in a state-designated High or Very High Fire Hazard Severity Zone, AB 38 (2019) added two duties. Under Civil Code §1102.6f, sellers of homes built before January 1, 2010 must give a fire-hardening disclosure; since July 1, 2025 that notice must reference the State Fire Marshal’s low-cost retrofit list and state which retrofits you completed. Under Civil Code §1102.19 (effective July 1, 2021), you must provide documentation that the property complies with defensible-space rules (Public Resources Code §4291) or a local vegetation ordinance.
Citation: AB 38 (2019), adding Cal. Civ. Code §1102.6f and §1102.19; defensible space per Pub. Res. Code §4291. Fire-damaged or fire-zone homes are among the situations a cash buyer can close around.
How does Proposition 19 affect a house I inherited in California?
Proposition 19 (operative February 16, 2021) sharply narrowed the parent-child property-tax break. An inherited home keeps the parent’s low assessed value only if an eligible child makes it their principal residence (and files within the deadline), and even then only up to a cap. For transfers between February 16, 2025 and February 15, 2027, the exclusion covers the parent’s factored base-year value plus $1,044,586; value above that is reassessed. If no heir moves in, the home is reassessed to market value — often a large property-tax jump. Heirs claim the exclusion on form BOE-19-P.
Citation: Proposition 19; exclusion amount $1,044,586 (2/16/2025–2/15/2027), form BOE-19-P, per the California State Board of Equalization. Many heirs sell rather than absorb the new tax — one of the situations a cash buyer can close around when selling an inherited house. If the estate is still in court, see also selling a house in probate.
Can I sell a tenant-occupied house in California, and what are the rent-control rules?
You can sell, but the tenancy generally transfers with the property, and two state laws constrain what you and the buyer can do. The Costa-Hawkins Rental Housing Act (Civ. Code §1954.50 et seq.) exempts single-family homes, condos, and units first occupied after February 1, 1995 from local rent control and allows resetting rent at vacancy. Separately, AB 1482 — the Tenant Protection Act — caps annual rent increases at 5% plus regional CPI, never above 10% (Civ. Code §1947.12), and requires “just cause” to end a tenancy after 12 months of occupancy (Civ. Code §1946.2), with specific exemptions. Many Bay Area cities layer stricter rules on top.
Citation: Costa-Hawkins, Cal. Civ. Code §1954.50 et seq.; AB 1482, Cal. Civ. Code §1946.2 and §1947.12. A tenant-occupied property you’d rather not manage through a listing is one of the situations a cash buyer can close around.
Why can’t some California homes get insurance — and why does that block a sale?
California’s insurance market has tightened sharply, and many homes in fire-exposed areas can no longer get standard coverage. The California FAIR Plan is the state-backed “insurer of last resort” for owners who can’t buy a policy on the open market; it focuses on basic fire coverage and is usually paired with a wraparound (DIC) policy for everything else. This matters at sale time because nearly every mortgage lender requires the buyer to carry hazard insurance. If a home is effectively uninsurable, most financed buyers simply cannot close.
Citation: California FAIR Plan, per the California Department of Insurance. A home no financed buyer can insure is one of the situations a cash buyer can close around, because a cash purchase doesn’t depend on a lender’s insurance requirement — see selling an uninsurable house.
Does San Jose require a seismic retrofit before I sell a multi-unit building?
San Jose’s Soft-Story Retrofit Ordinance takes effect April 1, 2026 and targets older, wood-frame residential buildings with three or more units (generally built before 1990) — the classic “tuck-under parking” design that performed poorly in past earthquakes. Owners must have the building screened by a licensed professional and, if it qualifies as soft-story, complete a seismic retrofit on a phased schedule running into the early 2030s. It is a property-condition mandate rather than a strict point-of-sale gate, but it is a known liability buyers will price in.
Citation: City of San Jose Soft-Story Retrofit Ordinance (effective April 1, 2026). Confirm the exact screening and per-group retrofit deadlines on the City’s official page, as published schedules differ.
What is Berkeley’s BESO requirement when selling a home?
Berkeley’s Building Emissions Saving Ordinance (BESO), Berkeley Municipal Code Chapter 19.81, is a true point-of-sale rule. As of January 1, 2026, selling a single-family home or duplex in Berkeley requires a Home Energy Score and meeting a “resilience standard” of at least six upgrade credits (earned through measures like heat pumps or solar). If the work isn’t done before closing, the seller and buyer can defer it by depositing $5,000 with the City ($2,500 each); the buyer then has two years to complete the upgrades. The requirement reaches 3–4 unit buildings starting in 2028.
Citation: Berkeley Municipal Code Ch. 19.81 (BESO); 1–2 unit point-of-sale requirement effective January 1, 2026. If you’d rather not manage the score, the upgrades, or the escrow, a cash buyer can close around the Berkeley BESO process.
Do I need an EBMUD sewer lateral certificate to sell an East Bay home?
In much of the EBMUD service area, yes. The East Bay Regional Private Sewer Lateral (PSL) Ordinance requires a compliance certificate confirming your private sewer line is leak-free before a sale closes (it’s also triggered by remodels over $100,000 or a water-meter change). Certificates last 7 years (line tested/repaired) or 20 years (full replacement). If you can’t finish in time, a Time Extension Certificate — backed by a $4,500 deposit — gives six months to complete the work. It applies in Alameda, Albany, Emeryville, Oakland, Piedmont, El Cerrito, Kensington, and the Richmond Annex; Berkeley runs its own program.
Citation: EBMUD Regional Private Sewer Lateral Ordinance (eastbaypsl.com). A failed or expensive lateral is a repair-heavy hurdle a cash buyer can close around when buying a house that needs repairs.
Can I sell a house with an unpermitted ADU or in-law unit in California?
You can — and a 2024 law made it easier. AB 2533 (amending Government Code §66332, effective January 1, 2025) created an amnesty path to legalize accessory dwelling units and junior ADUs built before January 1, 2020. A local agency generally cannot deny the legalization permit just because the unit doesn’t meet every building-code standard, unless the issue is an actual health-and-safety violation (Health & Safety Code §17920.3), and most impact fees are waived. You must still disclose an unpermitted unit to buyers under the standard disclosure rules above.
Citation: AB 2533 (2024), amending Cal. Gov. Code §66332; eligibility for units built before January 1, 2020. An unpermitted in-law unit is one of the situations a cash buyer can close around — buying as-is while you weigh whether to legalize.
Will a buried oil tank, knob-and-tube wiring, or galvanized pipe stop my sale?
These aren’t governed by one statute, but they routinely derail conventional sales because of how insurers and lenders underwrite. A buried heating-oil tank is treated as an environmental risk (corrosion and soil contamination); active knob-and-tube wiring and old galvanized plumbing are common reasons carriers decline or cancel a homeowners policy. Because lenders require insurance, an uninsurable older home can become unfinanceable — a chain reaction that ends many deals before closing.
Citation: No single code section — this reflects standard California insurer and mortgage-lender underwriting practice. An older home with these issues is one of the situations a cash buyer can close around, since a cash offer doesn’t hinge on a lender’s insurance condition — see selling an uninsurable house. If you’re already behind on payments while sorting this out, see options when facing foreclosure.
Putting it together
None of these laws make a California home impossible to sell. They do mean that condition, location, tenancy, and inheritance status each carry their own paperwork — and that a single unresolved item (an uninsurable structure, a failed sewer lateral, a tenant with just-cause protections) can stall a financed sale that would otherwise close. Knowing which rule applies before you list is the difference between a smooth escrow and a surprise three weeks in.
Last updated: June 2026. This guide is general information, not legal, tax, or insurance advice. Statutes, ordinances, dollar caps, and deadlines change. Confirm anything that affects a specific transaction with a licensed California attorney, tax professional, or the relevant city or agency before you rely on it.