What California Civil Code §1088 Means for Co-Owned Property Transfers

Selling co-owned real estate can become complicated when the owners don’t agree about the sale or information used to market the property. A California real estate lawyer can help clarify who has authority to list the property and which ownership interest may be transferred.

California Civil Code §1088 addresses listings placed in a multiple listing service, commonly called an MLS. Although the law does not create a special transfer process for co-owned property, it can affect how brokers and owners prepare a property for sale.

What does California Civil Code §1088 require?

California Civil Code §1088 makes it unlawful to list a property in an MLS without the seller’s authorisation or direction. This rule prevents a broker or agent from advertising property without the permission of one who has authority to sell the interest advertised.

The law also addresses the accuracy of MLS information. An agent or appraiser who places information in an MLS may be responsible for false or inaccurate statements that the person knew or reasonably should have known were incorrect.

How does the law affect property with several owners?

A deed can indicate that two or more people own the same property. They could be joint tenants or tenants in common. Property can also be owned by a business entity or trust.

Before entering a listing, the broker should identify the legal owner and confirm the authority of the person giving instructions. If the listing offers the entire property, the broker should determine whether every required owner or authorized representative has approved the proposed sale.

Can one co-owner list or sell the property?

A co-owner may sometimes transfer only that person’s ownership interest. For example, Civil Code §683.2 allows a joint tenant to sever a joint tenancy as to that tenant’s interest without the consent of the other joint tenants, subject to the statute’s requirements.

That does not mean one co-owner can automatically sell the entire property. A California real estate lawyer can review the deed and any ownership agreements to determine what a co-owner may transfer. If only a fractional interest is being offered, the MLS entry should describe that interest accurately rather than suggesting that the whole parcel is available.

What listing information may create legal risk?

Problems can arise when an MLS entry incorrectly identifies the seller or describes the ownership interest. Similar concerns may arise if the listing contains inaccurate claims about the property’s size or legal use.

Section 1088 does not make an agent responsible for every fact that later proves incorrect. The agent or appraiser is responsible for any representations made if they knew or reasonably should have known that the representation was false or inaccurate. A loss caused by incorrect information may lead an injured buyer or other affected person to seek compensation for that loss.

Why should owners resolve authority before listing?

A listing does not transfer legal title by itself. Under Civil Code §1091, a transfer of a real property estate generally requires a written instrument signed by the person disposing of the property or an agent authorized in writing.

Confirming authority early can prevent disputes when an offer arrives. It can also reduce the risk of a failed closing caused by a missing owner’s signature or an undisclosed disagreement among co-owners.

How long must MLS information be retained?

Section 1088 requires an MLS to retain listing information on its computer system for at least three years from the date the listing was placed. The information must remain accessible during that period.

Real estate brokers have separate document-retention duties under California law. These records may help establish who authorized a listing and what information appeared in the MLS if a dispute develops later.

How can Apricity Law help?

With co-owned property sales, knowing who holds title and what each owner has agreed to sell is important. A prelisting review can help prevent disputes over ownership and false statements on the MLS.

A California real estate lawyer at Apricity Law can review the deed and proposed listing before the transaction goes forward. If you have a real estate concern in California, including the sale of co-owned property, call (530) 303-7311 or reach out online to discuss your situation.