Coming from New York: how buying a home in LA is different

If you've bought in New York, you already know how to compete for a home in an expensive market. What changes in Los Angeles is the machinery: who writes the contract, who holds the money, how long each step takes, and what you're actually buying. Here's a plain-English overview of the differences. It's general information, not legal advice, and the details of any purchase should be confirmed with your agent, your lender and, where needed, a California real estate attorney.

Agents write the offer, not attorneys

In New York City, the deal usually runs through attorneys, and the contract gets negotiated after a verbal accepted offer. In California, it's generally the other way around. Your agent writes a full written offer on a standard form, most often the California Association of REALTORS purchase agreement, and when the seller signs it (or you both sign a counter offer), you have a contract. Price, deposit, contingency periods and closing date are all set at that moment.

Attorneys aren't typically part of a standard residential deal here, though you can always hire one to review a contract. That's worth considering for unusual properties or terms.

Escrow sits in the middle

California uses a neutral escrow company (or, in some cases, a title company acting as escrow) to hold the deposit, collect documents, coordinate with the lender and handle the closing. Nobody gathers around a conference table to sign. You sign documents with a notary, usually a few days before closing, and the deal records with the county.

A typical escrow on a financed purchase runs around 30 days, but it's negotiable. All-cash deals can close faster, and some sellers ask for longer.

Deposits and contingencies

• The deposit. Often called earnest money, it's typically wired to escrow within a few days of acceptance. A deposit of around 3% of the price is common in LA, but it varies by deal.
• Contingency periods. The standard California form gives the buyer time periods to complete inspections, review disclosures, get an appraisal and secure a loan. These periods are written into the contract and can be shortened or removed as part of a competitive offer. How long they run, and what happens when they're removed, is something to go over carefully with your agent before you write.
• Removing contingencies. In California, contingencies are generally removed in writing. Until then, the buyer usually has defined rights to cancel. After that, the deposit may be at risk. This is one of the most important differences to understand, and the specifics depend on the contract.

You're probably buying a house, not shares

There are no co-op boards in LA to speak of. Most of what you'll look at is either a single-family house you own outright with its land, or a condominium with a homeowners association. Condo buyers review the HOA's budget, reserves, rules and meeting minutes during escrow, but there's no board interview and no approval process for the buyer.

That also means the house itself becomes your responsibility: roof, foundation, drainage, sewer line, trees, retaining walls. Inspections here tend to go deeper than in a New York apartment purchase, and it's common to bring in specialists for the sewer line, the foundation or the roof.

Disclosures are extensive

California sellers generally provide a substantial package of disclosures: a transfer disclosure statement, a seller questionnaire, a natural hazard disclosure covering things like fire hazard zones, flood zones and earthquake fault zones, plus reports and permits they have on hand. Read all of it. It often tells you what to inspect more closely.

A few more differences worth knowing

• Buyer agreements. Since 2024, buyers are generally asked to sign a written agreement with an agent before touring homes. Read it, and ask questions about how compensation works.
• Property taxes reset when you buy. In California, they're based largely on your purchase price, not on what the last owner paid. More on that in a separate post.
• The city matters. Los Angeles County has 88 cities, and transfer taxes, permits and rules can differ between them. Beverly Hills, Santa Monica and the City of LA are three different governments.
• Insurance comes early. In parts of LA, finding homeowners insurance takes real effort. It's smart to get quotes during your contingency period, not after.

Where to start

If you're coming from New York, the market will feel familiar in one way: good homes in good locations still move quickly, and preparation wins. Get pre-approved with a lender who knows California, learn the contract before you need it, and spend time in the neighborhoods you're considering. Our guide to buying in LA from out of town covers the basics, and the neighborhood guides are a good place to start narrowing down. For official consumer information on real estate transactions, the California Department of Real Estate has resources on its site.