The real estate market has changed.A few years ago, sellers could put a home on the market and, in many cases, expect strong buyer activity almost immediately. Multiple offers were common, homes
What California Homeowners Need to Know About AB 736
Dated: June 24 2026
Views: 27
By Robert Lee | The Robert Lee Real Estate Group
If you've been following California real estate news, you may have heard about AB 736, a proposed piece of legislation that could affect transfer taxes on residential property sales. While the bill has generated considerable discussion within the real estate industry, many homeowners are simply asking one question:
What does it actually mean for me?
Here's an overview of the proposal and why it's receiving attention.
What Is a Transfer Tax?
A transfer tax, sometimes called a documentary transfer tax, is a fee that may be charged when real estate changes ownership. Depending on the city or county, the amount can vary, and responsibility for paying the tax is determined by local custom or negotiated as part of the purchase agreement.
Currently, most California general law cities are limited to charging approximately $1.10 per $1,000 of a property's sale price, or about 0.11%.
For example, on a home selling for $930,260, the maximum transfer tax under the current general law city limit would be approximately $1,023.
What Would AB 736 Do?
AB 736 proposes creating a new statewide framework that would allow cities to adopt higher transfer tax rates than are currently permitted for many general law cities.
Depending on a city's existing transfer tax structure, the bill could allow local transfer tax rates of up to 1.5% to 3%, subject to local adoption and the provisions of the legislation.
It's important to note that AB 736 does not automatically increase transfer taxes statewide. Instead, it would establish new limits under which local governments could choose whether to adopt or modify transfer taxes.
Why Is the Bill Being Discussed?
Like many pieces of legislation, AB 736 has supporters and opponents.
Supporters believe the proposal would give local governments additional flexibility to generate revenue for housing programs and other community needs.
Opponents, including the California Association of REALTORS®, have expressed concerns that allowing substantially higher transfer taxes could increase the cost of selling a home, reduce housing affordability, and discourage homeowners from moving.
Because transfer taxes are typically associated with real estate transactions, the proposal has received significant attention throughout California's housing industry.
What Could This Mean for Homeowners?
If AB 736 were enacted and a local government later chose to adopt higher transfer taxes, homeowners selling property in that jurisdiction could experience higher closing costs.
The actual impact would depend on several factors, including:
- Whether the bill becomes law.
- Whether a city or county adopts higher transfer taxes.
- The property's sale price.
- The specific transfer tax rate established by the local government.
Since every community is different, the effect would not necessarily be the same across California.
Current Law vs. Proposed Framework
| Current General Law City Limit | Proposed Under AB 736 |
|---|---|
| Approximately 0.11% transfer tax | Local governments could have authority to adopt higher transfer tax rates, generally up to 1.5%–3%, depending on the legislation and local circumstances |
| About $1,023 on a $930,260 sale | Could be substantially higher if adopted locally |
| Existing statewide framework | New statewide framework allowing greater local flexibility |
Why Staying Informed Matters
Real estate laws and regulations continue to evolve, and proposed legislation can influence housing costs, affordability, and the overall real estate market.
Whether you're planning to buy, sell, invest, or simply own a home in California, staying informed about proposed changes can help you make more confident decisions.
As a real estate professional serving California's Central Valley and Central Coast, I believe one of my responsibilities is helping clients understand how proposed legislation and market developments may affect real estate ownership and transactions.
I'll continue sharing educational updates on important topics affecting California homeowners so you can stay informed as laws and the housing market continue to evolve.
If you have questions about buying or selling a home, or would like to discuss your local market, I'd be happy to help.
Robert Lee
The Robert Lee Real Estate Group | RE/MAX Success
Serving California's Central Valley & Central Coast
📞 559-734-6431
Disclaimer: This article is provided for general informational purposes only and should not be considered legal, tax, or financial advice. AB 736 is proposed legislation and may be amended during the legislative process. Please consult the appropriate professionals regarding your specific situation.
Robert Lee
With more than 35 years of real estate experience and 7 years in mortgage lending, I provide buyers, sellers, and investors with knowledgeable guidance, expert negotiation, and proven results. Over th....
Latest Blog Posts
When we look at something extraordinary—a painting, a building, a piece of music, or even a life well lived—we usually see the finished product.We don’t see all the moments that
Written by Robert Lee, Broker AssociateThe Robert Lee Real Estate GroupReal estate has a way of reminding us that we can't control everything.We can prepare. We can study the market. We can make a
There comes a moment in almost everyone's life when they begin searching for a place to call home. For some, it's the excitement of buying their very first house. For others, it's finding more room
Based on information from California Regional Multiple Listing Service, Inc. as of September 28, 2026 8:17 AM UTC This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.
We do not attempt to independently verify the currency, completeness, accuracy or authenticity of the data contained herein. Data may be subject to transcription and transmission errors. Accordingly, the data is provided on an "as is" "as available" basis only and may not reflect all real estate activity in the market. © 2026 REsides, Inc. All rights reserved. Certain information contained herein is derived from information which is the licensed property of, and copyrighted by, REsides, Inc.
© 2026 Fresno Association of REALTORS ®. All rights reserved. The data relating to real estate for sale on this web site comes in part from the Internet Data eXchange (IDX) of the Multiple Listing Service. Real estate listings held by brokerage firms other than The Robert Lee Real Estate Group are marked with the IDX logo and detailed information about them includes the name of the listing broker and the name of the listing agent.
All data, including all measurements and calculations of
Midwest Real Estate Data (MRED) All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating to real estate for sale on this website comes in part from the Internet Data Exchange program of the Multiple Listing Service. Real estate listings held by brokerage firms other than The Robert Lee Real Estate Group may be marked with the Internet Data Exchange logo and detailed information about those properties will include the name of the listing broker(s) when required by the MLS. Copyright ©2026 All rights reserved.Based on information submitted to the MLS GRID as of September 28, 2026 7:34 AM UTC All data is obtained from various sources and may not have been verified by broker or MLS GRID. Supplied Open House Information is subject to change without notice.
Data is updated as of September 28, 2026 7:34 AM UTC
The content relating to real estate for sale and/or lease on this Web site comes in part from
the Internet Data eXchange ("IDX") program of the Northwest Indiana REALTORS® Association Multiple Listing Service ("NIRA MLS"). and is communicated verbatim, without change, as filed by its members. This information is being provided for the consumers' personal, noncommercial use and may not be used for any other purpose other than to identify prospective properties consumers may be interested in purchasing
Tulare County Association of REALTORS® All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be
Copyright 2026 by Greater Vancouver REALTORS®. All Rights Reserved. NOTE: This representation is based in whole or in part on data generated by the Chilliwack & District Real Estate Board, Fraser Valley Real Estate Board
or Greater Vancouver REALTORS® which assumes no responsibility for its accuracy.
The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.
Last Updated: September 28, 2026 8:09 AM UTC
Copyright ©2026 Lowcountry Regional Multiple Listing Service. Information is deemed reliable but not guaranteed. Information is provided exclusively for the consumer's personal, non-commercial use, and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Last Updated: September 28, 2026 8:15 AM UTC
Based on information from CRISNet MLS as of September 28, 2026 8:06 AM UTC All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information. The listing broker's offer of compensation is made only to participants of the MLS where the listing is filed.
Data provided by: Victoria Real Estate Board 3035 Nanaimo Street, Victoria, British Columbia V8T 4W2
All information displayed is believed to be accurate but is not guaranteed and should be independently verified. No warranties or representations are made of any kind.
The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing
Information should be deemed reliable but not guaranteed, all representations are approximate, and individual verification is recommended. Copyright ©2026 All rights reserved.
The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by CREA and identify the quality of services
Regional MLS Alliance ®. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) nor Regional MLS Alliance © shall be held responsible for typographical errors, misinformation, misprints and shall be held totally harmless. Last Update: September 28, 2026 8:04 AM UTC
All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating
All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating
All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. The data relating
