San Francisco Bay Area

San Jose, CA

The largest Bay Area city, with more varied lots and prices than the peninsula, but the same fast, pre-inspected offer culture. A transfer-tax cliff above $2.3M and state housing laws that let many single-family lots add units are what set it apart.

💡 Upside tip

Check the price against the $2.3M Measure E threshold: just above it, an extra 0.75% applies to the whole price, not just the excess. Then size the lot for an ADU plus a JADU or an SB 9 split, and confirm the house was not tenant-occupied in the last 3 years, which would rule SB 9 out.

Offers & competition

South Bay listings typically go live midweek, hold open houses that weekend and review offers about a week after listing, and sellers may take a pre-emptive offer earlier. Seller pre-inspections are common, and inspection contingencies, when kept, are short (about 7 to 10 days).

Closing & who pays

Escrow and title companies close the deal, with no attorney required. By Santa Clara County custom the seller pays the escrow fee, the owner's title policy and the county transfer tax.

Transfer taxes

County tax is $1.10 per $1,000 plus a city tax of $3.30 per $1,000, split between buyer and seller. Measure E adds a tax on the full price above $2.3M: 0.75% up to $5M, 1.0% from $5M to $10M and 1.5% above $10M.

Seller disclosures

Statewide California rules apply: the TDS, the Natural Hazard Disclosure (NHD), any Mello-Roos or PACE assessment notice and the agent's AVID visual inspection. PACE liens are paid through the property tax bill and can complicate a refinance, so look for them.

What you can build

State law lets single-family lots add an ADU and a JADU ministerially (side and rear setbacks capped at 4 ft; ADUs under 750 sq ft are exempt from impact fees), or use SB 9 for two units and a two-way lot split. Santa Clara County is an "urban transit county" under SB 79, which since July 1, 2026 allows taller housing near major transit stops.

Permits & records

As a city over 150,000 people, San Jose must offer a central online permit portal with status tracking under AB 920. State law requires a decision on a complete ADU application within 60 days. Check the city's permit portal for current review times and the property's permit history.

Property tax

Prop 13 resets the assessed value to the purchase price, then caps increases at 2% a year; effective rates are typically about 1.1% to 1.3%. The Santa Clara County Assessor sends a supplemental bill after the sale, which you can appeal within 60 days of the notice.

Rent rules

San Jose's Apartment Rent Ordinance limits increases to 5% a year for buildings of 3 or more units built and occupied by September 7, 1979; single-family homes, condos, duplexes and ADUs are excluded. Most other rentals fall under state AB 1482 (5% plus regional CPI, 10% maximum).

Key risks

Read the NHD report for mapped flood, dam-inundation, fire and seismic hazard zones, and pull the FEMA flood map for the parcel. The research behind this guide has no San Jose-specific hazard data, so check the city and county hazard maps before planning additions.

⚠ Still verifying

The Measure E threshold appears to be indexed (it began at $2M in 2020 and is $2.3M in the 2026 title-company guide); confirm the current figure. The Apartment Rent Ordinance details come from a secondary source, not the city. San Jose's permit portal and data endpoints were not verified.

Official sources

Updated: 2026-10 · Summaries of public rules as of the date shown. Not legal or tax advice. Always confirm with the official source.