Selling a House As Is in California: What the Law Still Requires

Selling a house as is in California: the short answer

What as is means, and does not mean, in California

As is shifts repair costs, not information

An as-is clause tells the buyer you will not fix or credit for the condition they find. It does not let you stay quiet about what you already know. Under Civil Code section 1102(c), "any waiver of the requirements of this article is void as against public policy." A buyer who later finds a defect you knew about and did not disclose can still bring a claim.

Which homes the disclosure law covers

Section 1102(a) applies the Transfer Disclosure Statement to sales, exchanges, installment land contracts, lease-options and ground leases with improvements of single-family residential property. That is most houses, condos and small multi-unit buildings an owner sells.

Disclosing a defect you know about

Write it plainly on the TDS and attach any reports you have, such as a past inspection, a roof bid or a pest report. Describing a defect honestly, then pricing for it, is what makes an as-is sale stick.

Which sales are exempt from the Transfer Disclosure Statement

Civil Code section 1102.2 lists sales the TDS rule does not cover. Other disclosures may still apply, so check with your escrow holder.

Court-ordered and probate sales

Sales under court order are exempt, including sales ordered by a probate court in administering an estate, foreclosure sales, bankruptcy trustee sales and eminent domain. Our probate real estate guide covers how court-supervised sales work.

Trust and estate fiduciaries

Sales by a fiduciary administering a trust, guardianship, conservatorship or decedent's estate are exempt, with an exception: it does not apply when the trustee is a natural person acting as trustee of a revocable trust who is a former owner of the home or lived in it within the preceding year. An owner who put the home in their own living trust and sells it as trustee is therefore not exempt. A successor trustee selling a late parent's home is often exempt, but confirm it with escrow.

Foreclosures and lender-owned homes

Transfers to a lender by a borrower in default, foreclosure sales and sales by a lender that took the home through foreclosure or a deed in lieu are exempt. That is why bank-owned homes are typically sold as is with limited disclosures.

Family and co-owner transfers

Transfers to a spouse or to relatives in the line of consanguinity of a seller, transfers between spouses under a divorce or legal separation judgment, and transfers from one co-owner to another are also on the exempt list. These are rarely arm's-length sales to the public.

Forms you still deliver in an as-is sale

Natural hazard, smoke alarm and water heater statements

A non-exempt as-is seller still gives the buyer a Natural Hazard Disclosure Statement (Civil Code section 1103.2), a written statement that the home has operable smoke alarms (Health and Safety Code section 13113.8) and a certification that the water heater is braced (section 19211). If an alarm is missing or a heater is unstrapped, installing them usually costs far less than the problems a false certificate creates.

Defensible space in fire hazard zones

In a high or very high fire hazard severity zone, Civil Code section 1102.19 requires documentation of defensible space compliance where a local ordinance or inspection program provides it. If you do not get it, you and the buyer sign a written agreement that the buyer will obtain it; where an inspection program exists but no ordinance, the buyer has one year after closing. This is one of the few compliance tasks an as-is seller can contract to the buyer.

Plumbing fixtures and other notices

You disclose whether the home has non-compliant plumbing fixtures under Civil Code section 1101.4, and the buyer receives the supplemental property tax notice. The full list is in our seller disclosure guide.

Local point-of-sale rules

Some cities and water or sewer districts require their own inspection, certificate or retrofit when a home changes hands. Call your city building department and sewer district before listing. An as-is clause does not override a local ordinance.

Ways to sell a house as is in California

Listing as is on the open market

You can list on the MLS with an as-is label and still reach every buyer, including owner-occupants who will take on a project. Pre-listing inspections help: buyers bid with more confidence when the defects are written down. Our guide to selling a house in California covers the listing process.

Cash investors and instant offers

Companies and individual investors buy homes for cash, often with short escrows and no repair requests. Ask each for a written offer that states the price, the deposit, any inspection period and who pays closing costs and transfer tax. Compare it with what the home could sell for on the market.

Wholesalers and assignment contracts

Some buyers sign a contract and then assign it to another investor for a fee rather than buy the home themselves. Read the contract for an assignment clause, ask who the end buyer will be, and make sure your deposit and closing date are firm.

Homes in foreclosure: the Home Equity Sales Contracts Act

If a notice of default has been recorded on your home and you sell to an investor who will not live there, Civil Code section 1695 and following apply. Under section 1695.4, you may cancel the contract until midnight of the fifth business day after you sign it, or until 8 a.m. on the day of the foreclosure sale, whichever comes first. Do not deed the home to anyone before that period ends, and talk to a housing counselor or attorney about alternatives first.

Questions to ask any as-is buyer

Before you sign, ask: Is the offer contingent on an inspection, and for how many days? How large is the deposit, and when does it become non-refundable? Who pays escrow, title and the transfer tax? Can the buyer assign the contract? Is there financing, or proof of funds? What happens if the buyer finds something new during escrow? Written answers to these questions make offers comparable and reduce the chance of a late price cut.

Worked example: as-is cash offer vs repairing and listing

The two offers side by side

All figures are assumptions for illustration. A home would sell for $700,000 in good condition and needs a $40,000 roof and $25,000 of plumbing work. An investor offers $580,000 cash, as is, and pays its own closing costs.

Reading the result

Here the gap is about $10,900 in favor of repairing, but the repair path carries cost overruns, permit delays and market risk. A third option, listing as is on the MLS at a price between the two, often lands in the middle. Get two or three investor offers and an agent's estimate of the as-is market price before deciding.

Common mistakes when selling as is in California

• Treating as is as no disclosure. The TDS waiver is void; a missing disclosure can undo the sale or lead to damages.
• Skipping the smoke alarm and water heater fixes. They are cheap and you must certify them.
• Accepting one cash offer. Investor prices vary widely; get several in writing.
• Signing away your home in foreclosure. Use your five business day cancellation right and get advice.
• Ignoring tax rules. Capital gains and Form 593 withholding apply to as-is sales too; see our capital gains guide.