A California law may figure prominently in one's estate plan, depending on the person's circumstances and needs. The statute, passed in 1986, allows children to inherit real estate from their parents without having to pay a tax based on the current market value. The effect is to protect the children from the impact of steep tax increases on inherited property. The tax-friendly law appears to be cutting down on the number of real estate transactions and on the number of marketable homes going on the market.
California is reportedly experiencing a housing crisis, which is occurring alongside booming levels of business for Airbnb and similar real estate rental companies. However, short-term renting is not welcomed in many cities in the state. For example, Santa Monica passed an ordinance tightening restrictions against rental real estate transactions and setting up a system of registration of available properties.
In California and other states, a certain amount of paper work must be completed with respect to one's homeowner's association when a home is being sold. The seller is required in such real estate transactions to inform the HOA that the transaction is going to occur. As a double-check on assuring that transfer of information, the title company or closing attorney will usually get in touch with the HOA for notification purposes and to inquire whether any outstanding fees are due by the current owner.
Technology is now invading the real estate industry to introduce new models of how real property can be bought and sold. The result is that consumers may be able to save considerable money by avoiding high-priced real estate broker commissions in the future. California, as usual, is positioned to be in the vanguard of such industry-wide changes in the nature of how real estate transactions are conducted.