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California Wants Another Bite at Your Home Sale: What AB 736 Could Mean for Sellers

AB 736 and California Transfer Taxes: What Home Sellers Should Know
Jonathan Rodriguez  |  June 26, 2026

Selling a home in California is already expensive.  Most homeowners think about the sales price first. That makes sense. Everyone wants to know what their home is worth. But the number that matters most is not always the sales price.

It is what you actually walk away with.

That is why California homeowners should be paying attention to AB 736.

AB 736 is currently tied to real estate transfer taxes in California. In simple terms, transfer taxes are taxes connected to the sale or transfer of real property. Depending on where the property is located, these costs can affect the overall expense of selling a home.

And let’s be honest, California sellers are already paying enough.

By the time a seller gets through escrow, there can be a long list of expenses. Escrow fees. Title fees. Repairs. Termite work. Credits to the buyer. Moving costs. Possible tax issues. And of course, real estate commissions.

All of those numbers matter.

This is why AB 736 is worth watching. Whether someone supports it, opposes it, or is still trying to understand the details, the bigger point is simple: the cost of selling real estate in California continues to be a major issue.

And when selling gets more expensive, sellers feel it.

For many homeowners, their home is their largest financial asset. They have spent years building equity, making payments, maintaining the property, surviving market changes, and hoping that when the time comes to sell, they can use that equity for the next chapter of life.

So when more costs get attached to the sale, sellers should ask questions.

What am I paying?

Why am I paying it?

How much will I actually keep?

And where can I make smarter decisions?

That last question matters.

Some selling costs are fixed. Some are controlled by the city, county, state, lender, escrow company, title company, or negotiated terms of the sale. But one area where sellers should absolutely be having a conversation is real estate commission.

For years, many sellers were told that a traditional percentage-based commission was simply the normal cost of doing business. But just because something has been normal does not mean it should never be questioned.

Your equity should not be treated casually.

At CA Flat Fee, our position is simple: sellers deserve full-service representation, but they should not have to overpay to get it.

A good listing agent should help you prepare your home, price it correctly, market it properly, negotiate strongly, manage the process, and protect your interests through closing. That service matters.

But the fee structure should make sense.

If the state, local governments, escrow, title, repairs, moving expenses, and other costs are already taking a bite out of your sale, why should you automatically give away more equity than necessary in commission?

That is the conversation more California homeowners need to have.

AB 736 is a reminder that sellers need to be informed. Laws change. Costs change. Market conditions change. But the goal should remain the same: protect the seller, protect the equity, and make sure the homeowner understands the real bottom line.

Before you list your home, do not just ask, “What can I sell for?”

Ask, “What will I actually walk away with?”

That is the number that matters.

At CA Flat Fee, we help sellers look at the full picture. Not just the sales price. Not just the commission. Not just the marketing. The full picture.

Because selling your home should not feel like everyone else gets paid first and you get what is left.

You worked hard for your equity.

You should keep more of it.

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