Note: This is typically handled by escrow.
California Revenue and Taxation Code requires that buyers withhold an amount equal to 3 1/3 percent of the sales price of the California real property conveyed. Most sellers qualify for an exemption, which means that often no California withholding is required.
Where Can I Learn More?
- California Association of Realtors Quick Guide
- California Franchise Tax Board Website on Real Estate Withholding