Real estate and construction
Buying, building and resolving disputes over property in Southern California, with broker-level transaction knowledge.
Overview
Buying, owning, building on, or selling real estate in California involves many rules. Sellers must give written disclosures. Co-owners who disagree may need a court to divide or sell the property. Neighbors can dispute a fence line or a driveway. Contractors and owners can clash over payment, delays, and defective work.
Construction has strict rules of its own. Home improvement contracts must follow set terms, contractors generally need a state license, and anyone who wants to record a mechanics lien must meet short deadlines. Missing a deadline by even one day can mean losing lien rights.
This page covers purchase and sale, title and co-owner disputes, boundaries and easements, commercial leases, construction contracts and payment rights, disputes with cities over permits and certificates of occupancy, ADUs and JADUs, and tax and national-security rules that can apply to foreign buyers and sellers.
What the law requires
- Sellers of most 1-to-4 unit homes must give buyers a Transfer Disclosure Statement (Civil Code 1102 and following) and a natural hazard disclosure. Buyers who receive the TDS after signing generally have 3 days (5 days if mailed) to cancel.
- A co-owner can ask a court to divide or sell shared property (CCP 872.210). For many cases filed on or after January 1, 2023, the Partition of Real Property Act (CCP 874.311 and following) requires an appraisal, gives other co-owners a chance to buy out the co-owner who asked for a sale, and generally requires an open-market sale through a broker.
- Home improvement contracts over $500 must be in writing with required terms. The down payment may not be more than $1,000 or 10% of the price, whichever is less (Bus. & Prof. Code 7159).
- Contractors generally must hold a California license. An unlicensed contractor usually cannot sue to collect payment, and the owner may be able to recover all money already paid (Bus. & Prof. Code 7031). Since January 1, 2025, the exemption for small jobs is under $1,000 total (labor and materials), up from $500.
- Subcontractors and suppliers usually must serve a preliminary notice within 20 days of first furnishing work or materials to protect lien and payment rights (Civil Code 8200–8216).
- A mechanics lien must be recorded on time: generally within 90 days after completion if no notice of completion or cessation is recorded; if one is recorded, within 60 days for the direct contractor and 30 days for others (Civil Code 8412, 8414). A lawsuit to foreclose the lien is generally due within 90 days after recording (Civil Code 8460).
- For qualified small business commercial tenants, landlords must give 30 days’ notice for rent increases of 10% or less and 90 days for more than 10% on month-to-month tenancies, and must follow rules for passing through building operating costs (SB 1103, effective 2025).
- When a foreign person sells U.S. real property, the buyer generally must withhold 15% of the amount realized under FIRPTA (26 U.S.C. 1445), with reduced or zero rates for some home purchases. California also generally requires 3 1/3% withholding on many sales, reported on FTB Form 593.
How we help
Transactions
- Purchase and sale of residential and commercial property
- Broker-level transaction knowledge (CA DRE No. 01921248)
- Operating agreements, private placement memoranda and subscription documents for real estate syndications
Title and property disputes
- Quiet title actions
- Co-owner and partnership disputes
- Lender and guaranty matters
Construction and development
- Construction and subcontract agreements, including ADU and JADU projects
- Payment disputes
- Permitting and occupancy issues, including Housing Accountability Act advocacy with cities and HCD
More ways we help
- Review purchase agreements, disclosures, and title reports before closing
- Prepare preliminary notices, mechanics liens, and stop payment notices, and file lien foreclosure actions
- Handle quiet title, partition, boundary, and easement cases
- Represent owners in permit and certificate of occupancy disputes with cities, including writ petitions
How the process works
Contract and contingencies
Most California home sales use the C.A.R. Residential Purchase Agreement. It sets contingency periods for inspections, appraisal, and loan approval (often 17 days by default) and requires mediation before most lawsuits.
Form: C.A.R. RPA; Buyer Representation AgreementTiming: Contingencies often 17 days unless changed
Disclosures, escrow, and title
The seller delivers the TDS, the Seller Property Questionnaire (SPQ) or similar, and hazard disclosures. Escrow holds funds, and a title company issues a preliminary report and title insurance.
Form: TDS; SPQ; Natural Hazard Disclosure; Preliminary Title ReportTiming: Often 30 to 45 days to close
Resolve title, boundary, or co-owner problems
Title defects and ownership disputes may be resolved by a quiet title action (CCP 760.010 and following). Co-owners who cannot agree may file for partition. Boundary and easement disputes can involve surveys, recorded easements, and claims for prescriptive easements.
Form: Complaint; Lis Pendens (Notice of Pendency of Action)Timing: Often 1 to 2 years if contested
Build with a proper contract and permits
Check the contractor’s license with the Contractors State License Board. Use a written contract with a payment schedule, change orders in writing, and clear permit responsibility.
Form: CSLB license check; building permitTiming: Before any work or payment
Protect payment rights
Serve the 20-day preliminary notice, then record a mechanics lien or serve a stop payment notice if not paid. On public projects, liens are not available, so the stop payment notice and payment bond claims are the main tools.
Form: Preliminary Notice; Mechanics Lien; Stop Payment NoticeTiming: 20 days; 30/60/90 days; foreclosure within 90 days of recording
Disputes with cities over permits or occupancy
When a city denies a permit, withholds a certificate of occupancy, or imposes conditions, the owner may appeal within the city, then seek a writ of mandate in superior court. Many land-use challenges must be filed and served within 90 days (Gov. Code 65009; CCP 1094.6).
Form: Petition for Writ of Mandate (CCP 1085 or 1094.5)Timing: Often 90 days after the final decision
Documents to gather
- Purchase agreement, counteroffers, and addenda
- TDS, SPQ, natural hazard disclosure, and inspection reports
- Grant deed, preliminary title report, and title insurance policy
- Survey, plot plan, and any recorded easements or CC&Rs
- Construction contract, change orders, and payment records
- Preliminary notices, lien documents, and proof of service
- Building permits, city correspondence, inspection records, and any notice of denial
- For foreign sellers or buyers: passport, ITIN or SSN, and prior FIRPTA or FTB Form 593 records
Common problems to avoid
- Removing contingencies before inspections, appraisal, or loan approval are complete.
- Hiring a contractor without checking the license, which can leave the owner without a reliable party to hold responsible.
- Missing the 20-day preliminary notice or the 30/60/90-day lien recording deadline, which can mean losing lien rights.
- Recording a mechanics lien but not filing the foreclosure lawsuit within 90 days, which makes the lien unenforceable.
- Co-owners signing a tenancy-in-common agreement without deciding how a future sale or buyout will work.
- Waiting too long to challenge a city decision; many land-use deadlines are only 90 days.
What has changed lately
Since January 1, 2025, unlicensed work is allowed only on jobs under $1,000 total for labor and materials, up from $500 (AB 2622). The job still cannot require a permit, and larger jobs cannot be split to avoid licensing.
In July 2025, the U.S. Department of Agriculture announced a National Farm Security Action Plan aimed at farmland purchases by buyers tied to foreign adversary countries, including China, and in December 2025 began rulemaking to update foreign ownership reporting under AFIDA. A California bill to ban certain foreign buyers from agricultural land (SB 1176) failed in committee in April 2026.
A federal rule effective December 2024 expanded the list of military sites near which certain foreign-person real estate purchases or leases may be reviewed by CFIUS (31 CFR Part 802).
Rules, fees and processing times change often. Ask us to confirm what applies to your case today.
Frequently asked questions
The seller did not tell me about a problem with the house. What can I do?
You may have claims for failure to disclose, fraud, or negligent misrepresentation. An ‘as is’ clause does not usually excuse hiding a known material defect. Your purchase agreement may require mediation before a lawsuit.
My siblings and I inherited a house and cannot agree. Can one of us force a sale?
Generally yes, a co-owner can file a partition action. Under the Partition of Real Property Act, the court usually orders an appraisal and gives the other owners a chance to buy out the owner who wants a sale. If no buyout happens, the court may divide or sell the property.
My contractor was not licensed. Do I still have to pay?
In most cases an unlicensed contractor cannot sue to collect, and the owner may be able to recover what was paid under Business and Professions Code 7031. There are narrow exceptions, and small jobs under $1,000 total may not require a license.
How long do I have to record a mechanics lien?
It depends on whether the owner recorded a notice of completion or cessation. Without one, generally 90 days after the work is completed. With one, 60 days for a direct contractor and 30 days for subcontractors and suppliers. After recording, the lawsuit to enforce the lien is generally due within 90 days.
The city will not issue my certificate of occupancy. What are my options?
Start by getting the city’s reasons in writing and using any appeal process. If the city still refuses, a court petition for a writ of mandate may be available. Deadlines can be as short as 90 days, so act quickly.
Can I build an ADU or JADU on my lot?
State law generally allows ADUs on lots with a home, and a JADU of up to 500 square feet within a single-family home. Cities must usually act on a complete application within 60 days. Local rules on size, setbacks, and parking still apply within state limits.
I am not a U.S. citizen. Can I buy or sell property in California?
Generally yes. When a foreign person sells, the buyer usually must withhold part of the price for federal tax under FIRPTA, and California may require its own withholding. Some purchases near military sites, or farmland purchases by buyers linked to certain countries, face extra federal review or reporting.
- Civil Code 1102 and following (Transfer Disclosure Statement)
- Code of Civil Procedure 874.311 (Partition of Real Property Act)
- Business and Professions Code 7159 (home improvement contracts)
- Business and Professions Code 7031 (unlicensed contractors)
- Civil Code 8412 (lien recording deadline, direct contractor)
- CSLB: Home improvement contracts
- CSLB Industry Bulletin: AB 2622 implementation ($1,000 minor work exemption)
- HCD: Accessory Dwelling Units
- IRS: FIRPTA withholding
- FTB: Real estate withholding
- Federal Register: CFIUS military installation list update (Nov. 7, 2024)
- USDA: Farm Security Action Plan update (Dec. 30, 2025)
Information current as of September 2026. General information only, not legal advice.
Protect your rights, we’ll lead the fight.
General information only, not legal advice. Contacting the firm does not create an attorney-client relationship. Prior results do not guarantee a similar outcome, and no particular result is promised. Responsible attorney: JJ Zhang, Esq., Tez Law P.C., 4141 S. Nogales St., Suite C102, West Covina, CA 91792.