California Real Estate Contract: Different Types and Key Terms to Include
Quick Facts — Real Estate Contract Lawyers (California)
- Avg cost to draft a Real Estate Purchase Agreement: $750.00
- Avg cost to review a Real Estate Purchase Agreement: $640.00
- Lawyers available: 56 California real estate lawyers
- Clients helped: 82 recent real estate contract projects in California
- Avg lawyer rating: 4.92 (8 reviews)
What is a California Real Estate Contract?
A real estate contract in California, often referred to as a real estate purchase and sale agreement, is a contract that is executed by a party selling a property and a party who is offering to purchase the property.
The contract is initiated when the buyer makes an offer. Once the seller accepts the offer and the terms of the contract are negotiated, the parties will sign the contract making it legally binding and enforceable.
Common California Real Estate Contracts
There are several types of real estate contracts that can be used in California. The three most popular contracts are:
- Purchase agreement. The most common type of real estate contract that is used for the transfer of property between a buyer and a seller.
- Real estate assignment contract. Used when purchasing “distressed properties” as a wholesale investment strategy. This contract allows the buyer to assign the contract to a second buyer.
- Lease agreement. Used when a landlord wants to rent their property to a tenant for use in exchange for a monthly rent.
4 Essential Elements of a California Real Estate Contract
All contracts must include specific essential elements to be valid and legal. In California, a real estate contract must have the following four essential elements:
- The contract must be executed by parties who are legally capable of entering a contract
- There must be mutual consent
- The contract must have a lawful objective
- The terms must include consideration (an exchange of things of value)
If the real estate contract is missing any of these elements, it will be deemed invalid and will not be legally enforceable under California law.
What Must Be Included in a California Real Estate Contract?
A California real estate contract lays out the terms and conditions surrounding the purchase of real property. This contract should include the following essential information:
- Purchase price. One of the most important parts of a real estate contract is the negotiated purchase price that the buyer has agreed to pay the seller.
- Closing date. This is the date that the sale is finalized and when payment must be made for the property. The timeframe for a closing date is usually 30 to 60 days out from signing the real estate contract.
- Agent commissions. Most buyers and sellers hire real estate agents to help facilitate the sale of the property. Both agents are entitled to commissions in this process.
- Earnest money deposit. The deposit made by the buyer when the contract is signed to show the seller they are committed to purchasing the property. In California, the standard deposit is 1%-3% of the total purchase price.
- Contingencies. Contingencies are the conditions that must be met by either the buyer or the seller to complete the deal. Common contingencies include the buyer selling their previous home or the home passing a home inspection.
- Contingency removal period. The date that contingencies will be removed to show that the buyer intends to close escrow.
- Disclosure requirements. Disclosures are conditions about the property that could lower the property value that the seller must reveal to the buyer before closing the sale. California requires 12 different disclosures that must be included in the real estate contract.
Do Real Estate Contracts Have to Be in Writing in California?
Yes. Real estate contracts in California must be in writing. In California, the Statute of Frauds governs which contracts must be in writing and which contracts are valid as oral agreements. Under this law, any contract used to purchase or sell land must be in writing. In addition, any property lease lasting for more than one year must also be in writing.
Frequently Asked Questions
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Don M.
AI and crypto-savvy Attorney with 20+ years’ experience advising companies in I.T., software, telecommunications, FinTech and Artificial Intelligence (AI) with 9+ yrs spent in GC roles. Barred in 3 states (Calif. New York & Wash. D.C.) plus the U.S. Supreme Court. Registered Patent Attorney (USPTO). Extremely versatile, with subject matter expertise in a variety of legal topics highly useful for tech and startup companies, including IP, privacy, financial / banking laws (Regulation E, UDAAP, ID Theft Red Flags Rule, etc.), AML, KYC, export controls, litigation/ADR, cryptocurrency regulations and the rules governing the use of A.I. Deep understanding of computer technology via Master’s in Comp. Info. Systems (MSCIS). Also pre-law business experience. Certifications: Certified Anti-Money Laundering Specialist (CAMS); Certified Information Privacy Professional (CIPP-US); Certified HIPAA Professional. Education: Law degree (JD): UCLA, 2003. MSCIS: Boston Univ., 2011.
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Kevin G.
For more than three decades, Kevin M. Gross has served as a trusted legal advisor to senior management and executive teams providing guidance on global compliance issues (anti-corruption, trade regulation, AML/KYC, privacy, and conflicts of interest), strategic concerns, due diligence, and risk mitigation strategies. In 2020, he founded C&R Consulting Group LLC to provide practical, cost-effective compliance and risk services to small and medium sized businesses. Prior to starting his own consulting firm, Kevin worked at Penumbra, Inc., a global healthcare company that manufactures and sells medical devices to healthcare providers, hospitals and clinics in more than 100 countries. At Penumbra, Kevin was the primary legal advisor to the company’s international sales and marketing executives. In addition, as Penumbra’s principal compliance lawyer, he conducted risk assessments and provided guidance and solutions to Penumbra’s internal compliance team. He oversaw due diligence on Penumbra’s international distributors, regulatory and sales agents, and other commercial partners. Prior to joining Penumbra, Kevin spent 15 years inside Chevron’s legal, compliance and upstream law departments, where he advised senior management on the company’s compliance and risk programs. Kevin overhauled Chevron’s hotline and investigations programs, strengthened internal controls and compliance procedures, and developed best practices and training for compliance personnel and investigators. Kevin also managed and conducted dozens of sensitive, high-profile investigations across six continents (internal and external), including FCPA, cybersecurity threats, and high-value theft and procurement frauds. Kevin directed outside counsel responses to SEC and DOJ inquiries, which were terminated without further action. He developed and conducted FCPA and compliance training for leadership teams and others across the enterprise. Prior to his tenure at Chevron, Kevin spent a decade as a senior enforcement attorney at the US Securities and Exchange Commission Division of Enforcement. At the SEC, he investigated and prosecuted cases involving securities fraud, insider trading, accounting fraud, options backdating, Ponzi schemes, and FCPA violations. Kevin filed and litigated SEC administrative and federal court actions against companies and individuals accused of violating federal securities laws. Early in his career, Kevin was a commercial litigator at Faegre Drinker LLP, an AmLaw 100 firm where he oversaw the investigation and resolution of insurance coverage disputes and other commercial litigation matters. In this role, Kevin took and defended hundreds of depositions, argued dozens of motions, and brought several cases to jury trials in US district courts. Kevin has received numerous accolades from clients and industry leaders, and is a frequent speaker at ACC, ACI, BECA, Consero and other conferences.
Neil R.
Neil Rust is a transactional attorney with almost four decades of experience ranging across a broad range of fields, including M&A, finance, structured finance, VC and general corporate. Before moving to Oregon, Mr. Rust was a partner at the Los Angeles office of an international law for 26 years and the Century City office of a national law firm for 5 years. During his big firm tenure, Neil Rust gathered experience across multiple industries and enjoys counselling clients as much as drafting and negotiating.
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I provide the strategic legal guidance of an in-house general counsel without the full-time overhead. Whether you're launching a startup, scaling your digital business, or navigating complex privacy regulations, I'm here to help. With a practice concentrated in privacy law, digital marketing compliance, and small business operations, I help clients make informed decisions that protect their interests while supporting their growth objectives.
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My name is Nick Gleason, and I’m an attorney licensed in California and a veteran of the United States Navy. While in law school, during my clerkship with Mob Entertainment, I worked under the General Counsel, drafting cease and desist letters, demand letters, and assignment and licensing agreements. I also worked with outside counsel on copyright infringement matters, helping to protect the interests of the company. Now in my professional practice, I continue to help clients like you protect your interests by offering affordable legal representation for all your contract and copyright needs. I can draft contracts, review proposed agreements for vulnerabilities, and negotiate terms on your behalf, as well as prepare effective cease and desist letters and demand letters tailored to your situation, including in copyright and DMCA-related matters. I will always be fair and transparent with my fees. I’d love to hear from you.
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Real Estate
Real Estate Contract
New York
Can you purchase or refinance under a land contract?
I’ve been living here for 2 years. Currently have been working with my credit union and they are having a terrible time trying to understand the legalities of my land contract first off, and secondly they just don’t seem to know what they are doing. It’s been over 8 months, 4 different loan officers and I’m once again waiting for someone else to help finish this thing out. It’s only $60,000 with a $120,000 appraisal. So, as of now I am stuck paying 2.5x monthly under this land contract than I was promised would be an easy mortgage process. So any guidance in the right direction would be very helpful. It’s a New York home. 20 yr fixed, no balloon, with a (brace yourself) 12% apr. HELP ME PLEASE! One month I’m being told to authorize a credit check for a first time homebuyer grant method of mortgaging this property. The next it’s authorizing it for a refinance. I do have earnest money deposits for over $3,000 and another $3000 paid towards principal under this land contract also.
Jane C.
I suggest you speak with a New York real estate attorney. That attorney needs to review the documents related to the transaction.
Real Estate
Real Estate Contract
Georgia
How many years does a quick claim become effective?s
Number of years for quick claim to be effect ive
Meghan T.
A quit claim deed is effective upon execution so long as the deed is dated as of the date of signature. Execution means that the deed is signed, in front of a witness and a notary. The witness and notary must also sign the deed. Finally, the deed must be recorded. This means that the deed must be submitted to the Superior Court recording office of the County in which the property sits. Please let me know if you have any questions. Thanks, Meghan K Thomas
Real Estate
Real Estate Contract
Georgia
WHAT ARE YOUR FEES TO PERFORM QUIT CLAIM DEED COMPLETE BUTTS COUNTY GEORGIA 30233
SON AND EX
Meghan T.
Hi. The cost for my practice to prepare a Quit Claim Deed is $99. The Cost for me to handle the closing is $250 plus recording fees. These costs apply for any county within the state of Georgia. Let me know if you have any more questions. Meghan K Thomas
Real Estate
Real Estate Contract
Illinois
what is better to buy land or rent for construction in US?
we are a construction company from Ukraine, we are planning to build a cottage town in the USA
T. Phillip B.
I suppose it doesn't matter if you have the lease giving you permission and the lease is long enough to justify the building expense when you won't own it. But I'd buy the land so you could eventually sell the property with the building on it.
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Location: Washington
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Service: Drafting
Doc Type: Real Estate Purchase Agreement
Number of Bids: 4
Bid Range: $400 - $1,000
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