California Property Law: Key Considerations for Practitioners

California’s property law landscape is a complex and ever-changing terrain shaped by a unique mix of statutory frameworks, evolving case law, environmental considerations, and policy reform. Whether advising clients on commercial leases, residential real estate transactions, or land use disputes, California property practitioners must remain agile, well-informed, and deeply familiar with state-specific nuances.

Understanding the Dual System: Common Law and Statutory Authority

California property law blends traditional common law principles with a robust statutory overlay. Key sources include:

• California Civil Code §§ 654–749 – Governs basic property rights, forms of ownership, easements, and more.
• California Government Code (Zoning and Land Use) – Crucial for land use, permitting, and development issues.
• California Code of Civil Procedure (CCP) – Especially relevant for unlawful detainer actions, quiet title proceedings, and adverse possession claims.

Forms of Ownership and Concurrent Interests

Understanding the nuances of how property is held is critical in advising clients, particularly in estate planning, real estate transactions, and dissolution actions.

• Joint Tenancy vs. Tenancy in Common – A common source of litigation, especially among unmarried co-owners.
• Community Property – For married couples, especially in disputes involving separate vs. community contributions.
• Trust and Entity Ownership – Increasingly used for liability protection and estate planning.

Pro Tip: Use precision in deeds and ensure vesting language reflects the parties’ actual intent. Missteps here can have long-term consequences.

Landlord-Tenant Law: A Shifting Landscape

California has some of the nation’s most complex and tenant-friendly landlord-tenant laws. Practitioners should stay up to date on:

• Statewide Rent Control (AB 1482) – Applies to many residential properties, limiting rent increases and setting eviction requirements.
• Just Cause Eviction Rules – Landlords must often demonstrate specific causes to terminate tenancies.
• Local Ordinances – Cities like San Francisco, Los Angeles, and Berkeley have their own rent stabilization laws and tenant protections.

Toolkit Tip: Remember, local compliance is non-negotiable. Maintain a library of city-specific housing codes and rent board updates. Gain actionable guidance through CEB’s OnLaw Pro, via secondary sources and workflows that help break down complex real property regulatory issues.

Commercial Leasing and Negotiation

Commercial property law in California is less regulated than residential leasing but still fraught with pitfalls. Lawyers negotiating or litigating commercial leases should pay attention to:

• Triple Net (NNN) Lease Structures – Common in retail and industrial contexts but often misunderstood by tenants.
• Exclusive Use and Co-Tenancy Clauses – Particularly in shopping centers and shared commercial spaces.
• Assignment and Subletting Provisions – Balancing flexibility for tenants with control for landlords is a key negotiation point.

Pro Tip: Use CEB’s Negotiating and Drafting Commercial Leases in California to build deal-savvy lease strategies.

Real Estate Transactions and Disclosures

From purchase agreements to title review and closing, real estate transactions require careful drafting, due diligence, and disclosure compliance.

Key issues include:

• Transfer Disclosure Statement (TDS) – Required in most residential transactions; failure to comply may expose sellers and their agents to liability.
• Natural Hazard Disclosure (NHD) Reports – Required to inform buyers of risks such as flood zones, fire hazards, and seismic activity.
• Title Insurance and Preliminary Reports – Reviewing exceptions, easements, and encumbrances is crucial for client protection.

Toolkit Tip: Flag any irregularities in chain of title or recorded easements. These are common sources of future litigation.

Easements, Encroachments, and Boundary Disputes

Disputes between neighbors—whether over fences, access, or shared driveways—can escalate quickly and are surprisingly common.

California property law lawyers should be familiar with:

• Express vs. Implied Easements – And how prescriptive easements are established under California law.
• Boundary by Agreement and Acquiescence – Often used when a longstanding structure suggests an alternative property line.
• Encroachment Remedies – Including injunctive relief, damages, and in rare cases, forced sale or removal.

Pro Tip: Use surveyors strategically and consult historic deeds and maps. Facts often matter more than client perceptions.

Land Use and Zoning: Balancing Growth and Regulation

Land use law in California is increasingly shaped by housing policy, environmental goals, and litigation over local control.

Keep an eye on:

• SB 9 and SB 10 – State laws designed to override restrictive zoning and encourage development of duplexes and small multi-family units.
• California Environmental Quality Act (CEQA) – Often used as a tool to delay or challenge developments.
• Coastal Commission and Local Coastal Programs – Critical for projects near the California coast.

Toolkit Tip: Stay informed on how recent legislation (like housing element enforcement) is reshaping local development rules.

Environmental Considerations and California Property Law

Environmental due diligence is vital in both transactional and litigation contexts, particularly with commercial and industrial properties.

Key issues include:

• Phase I and II Environmental Site Assessments – Used to assess liability for hazardous substances under CERCLA and state law.
• Proposition 65 Compliance – Businesses operating on-site must often post warnings for chemical exposure.
• Brownfield Redevelopment Laws – Understand how liability protections can apply under DTSC programs.
  

Pro Tip: Early collaboration with environmental consultants can save clients from expensive surprises and liability.

Litigation Strategy in Property Disputes

Whether it’s a quiet title action, partition lawsuit, or breach of lease, real property litigation in California requires a focused, strategic approach.

Key litigation tools:

• Lis Pendens (Notice of Pendency of Action) – A powerful but often contested tool to cloud title during litigation.
• Partition by Sale vs. Partition in Kind – Especially relevant when co-owners can’t agree on use or disposition of property.
• Specific Performance – Often available in real estate contracts, but judges may scrutinize feasibility and fairness.

Toolkit Tip: Always assess whether mediation or ADR might yield a quicker, more client-friendly resolution than prolonged litigation. Empower your OnLaw Pro subscription with Practitioner and maximize efficiency with Workflows, How-To Guides, Strategy Notes, Charts, Checklists, and annotated Sample Documents to guide you through with confidence.

Stay up to date on property law with Continuing Education of the Bar (CEB) 

CEB provides a range of online services designed to enhance legal practice, including Practitioner, CEB’s all-in-one legal research solution with authoritative practice guides. Practitioner is meticulously crafted by California lawyers for California lawyers, providing comprehensive insights and resources tailored to your specific needs. All practice guides seamlessly integrate with CEB’s primary law research tool, empowering you to delve into California, Ninth Circuit Court of Appeals, and U.S. Supreme Court case law, alongside California statutes and the California Constitution. As part of the Practitioner subscription, you gain access to DailyNews, ensuring you stay updated on any critical new cases or developments in your field. And don’t forget, Practitioner also includes TrueCite®, CEB’s powerful case law citator, enhancing your research efficiency and accuracy.

Our tools offer unparalleled support in case law research, legal analysis, and staying updated with the latest judicial decisions. By choosing CEB, you gain access to a wealth of knowledge, enabling you to navigate complex legal landscapes with confidence and precision.