California Land: What We Know About the Market
California is a massive and varied land market. The parcels we most commonly buy are in the rural and remote sections of the state that don't get the same attention as the coastal metros. We actively purchase in San Bernardino County — the largest county in the contiguous US — particularly the high desert near Twentynine Palms, Lucerne Valley, and the Mojave corridor. We buy regularly in Lassen County and Modoc County in the far northeast (timber and range land, very rural, minimal services), Kern County (oil-country ranchland and Tehachapi transitional land), and Riverside County in the Coachella Valley fringe and eastern desert areas. We also see regular inventory from Siskiyou County along the Oregon border.
Land character ranges from Mojave Desert floor to Cascade Mountain timberland to Central Valley farmland to Coast Range scrub. Many of the parcels we buy in the Mojave and high desert were part of the Southern California land boom of the 1950s–70s, when thousands of small lots were subdivided and sold via mail-order to buyers across the country who never saw the land in person.
Transfer tax: California imposes a county Documentary Transfer Tax (CDTT) of $1.10 per $1,000 of the sale price (or fraction thereof), authorized under the Revenue and Taxation Code. This is a county-level tax, not a state tax. Some cities impose an additional city-level transfer tax — Los Angeles city, San Francisco, Culver City, and several others charge substantially higher city transfer taxes. For rural land outside city limits, you're generally only paying the county rate of $1.10 per $1,000. On a $50,000 rural parcel, that's $55 in county transfer tax. Confirm whether your parcel falls within city limits with your escrow company.
Closing norms: California is an escrow and title company state — attorneys are not required for closings and rarely conduct them here. Closings are handled by licensed title insurance companies and escrow companies, which in California can be separate licensed entities. The primary deed form used in California is a grant deed — not a general warranty deed. A California grant deed carries two implied covenants. We convey by grant deed per California convention.
Property taxes and delinquency: California is primarily a tax deed state. Property taxes that remain unpaid for five years result in the county tax collector declaring the property "tax-defaulted" and scheduling it for public auction. If you're behind on California property taxes, we can pay them from proceeds at closing — confirm the outstanding amounts with the county tax collector before we open escrow.
Confirm documentary transfer tax rates and closing procedures with your California escrow company — this is not legal or tax advice.
