Selling a property in San Diego requires understanding and adhering to several legal requirements to ensure a smooth transaction and to avoid potential legal liabilities. Here’s a simplified breakdown of some of the legal aspects you need to consider:
1. Disclosure Requirements
• Transfer Disclosure Statement (TDS) – As a seller, you are mandated by California law to inform potential buyers of any material facts that could impact the property’s desirability or value. This includes the condition of the property’s structural components and systems.
• Natural Hazard Disclosure (NHD) – You must disclose if the property is situated in a natural hazard zone, such as earthquake fault zones or flood areas.
• Additional Disclosures – If applicable, sellers must disclose other elements such as deaths on the property, environmental hazards, past insurance claims, or the presence of lead-based paint for homes constructed before 1978.
2. Title and Insurance
• Clear Title – Make sure that the property title is free from any liens or encumbrances before transferring it to the buyer. This might involve settling existing mortgages or judgments.
• Title Insurance – In Southern California, it is customary for the seller to pay for the buyer’s title insurance, although this can be negotiated.
3. Escrow Process
• Partner an escrow agent to manage the funds and documents until all sale conditions are satisfied. In San Diego, independent escrow companies often handle these functions.
4. Closing Documents
• Ensure all necessary documents are prepared and signed, such as the sales agreement, deed, bill of sale, affidavit of title, and closing statement.
5. Tenant Considerations
• If the property is tenanted, the new owner will inherit the existing lease agreements and any related obligations.
6. Transfer Taxes
• Transfer Tax – A transfer tax is levied when ownership is recorded with the county. In San Diego, it is standard for the seller to pay this tax, although this is also negotiable.
7. “As Is” Sales
• Though properties can be sold “as is,” sellers are still obligated to disclose any known material defects.
8. Tax Implications
• Capital Gains Tax – Profits from the sale may be subject to capital gains tax, but certain exemptions may apply, such as the primary residence exclusion.
With the right professionals you work with when selling your home, these documents and processes become manageable and stress-free. I, Shirin Ramos, a CA licensed real estate broker, will help and guide you through the process, connecting you with the necessary professionals through my extensive network to ensure a smooth and successful home sale. Let’s connect! Call me at 858-345-0685.
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Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
