FIRPTA requires a buyer to withhold estimated taxes equal to 15% of the sale price in any sale of property owned by a foreigner unless the property will be used as the buyer's personal residence and sells for under $300,000. So, a $200,000 purchase price would be exempt from the withholding requirement.

The timetable for property taxes in California sets the due date for the first installment for half the taxes as November 1 and the due date for the second installment for the balance of the taxes as February 1.

Although investors can deduct depreciation of improvements on their investment properties, homeowners can typically only deduct mortgage interest, property taxes, and prepayment penalties from their annual income taxes.

In California, brokers and buyers must keep the documentation on the sale of real property by foreign persons for 5 years.

Since sellers are taxed on the capital gains when selling a home, using an installment sale spreads the gains over more than one calendar year and prevents the seller from having to pay taxes on the entire gain in one year.

Any person who acquires property that is subject to taxes must notify the county recorder or assessor by filing a change in ownership statement within 45 days of the date of recording or, if not recorded, within 45 days of the ownership change or pay a penalty.