San Francisco Seller Requirements: 3R Report, Transfer Tax and More
Before you sell a home in San Francisco, you must order a Report of Residential Building Record (3R report) and deliver it to the buyer, and complete the city’s water conservation inspection (plus the energy inspection if the building has never passed one). You must also disclose whether the property is in the city’s storm flood risk zone and pay transfer tax at the rate for your price tier, and state disclosures apply on top of these. Most of the city items take a week or more, so start them when you sign a listing agreement.
This checklist covers the city-specific steps in the order we’d do them, then the state statements every California seller signs. For pricing and marketing strategy, see our guide to selling a home in San Francisco.
The San Francisco seller checklist at a glance
| Requirement | What it involves | When |
|---|---|---|
| 3R report | Building permit history from the Department of Building Inspection (DBI); $286 per residential building | Before the sale; DBI says to allow 7 to 10 business days |
| Water conservation (and energy, if needed) | Inspection, fixture upgrades, certificate of compliance recorded with the deed | Before or at the transfer of title |
| Flood risk zone disclosure | Written statement whether the parcel is in the SFPUC 100-year storm flood risk zone | Before the sales contract or transfer of title |
| Transfer tax and affidavit | Tiered tax on the whole price, plus a Transfer Tax Affidavit and Preliminary Change of Ownership Report | At recording |
| State disclosures | Transfer disclosure, natural hazards, smoke alarm and water heater statements, lead paint, earthquake guide where required | Before or during the buyer’s review period |
Step 1: Order the 3R report
San Francisco Housing Code §351 makes it unlawful for the owner of a residential building to sell or exchange it without first obtaining the 3R report and delivering it to the buyer. A residential building means one with one or more dwelling units, excluding hotels with 30 or more guest rooms and motels (DBI application form). DBI’s older records page lists one exception: the first sale of a newly built building within one year of its Certificate of Final Completion.
The report shows building permit history only. It doesn’t include plumbing, electrical or commercial permits, so order those records separately if the buyer will ask about them (sf.gov).
- Fee: $286 for each residential building on a lot, nonrefundable, with a 2.5% surcharge for online card payment (sf.gov, October 2026).
- One request per building or unit: each building on a lot, and each condo or co-op unit, needs its own application.
- What to have ready: block and lot numbers, the property address, and the legal owner’s name and contact details.
- How: online, by mail, or at DBI Records Management, 49 South Van Ness Avenue, Suite 400.
Read the report as soon as it arrives. If it shows two units where you’ve been living with three, or no permit for a finished lower floor, address it before listing; our guide to homes with unwarranted units explains the options, and the San Francisco property evidence checklist helps organize the rest of the file.
Step 2: Complete the water and energy conservation inspection
San Francisco requires residential properties to meet water-efficiency standards when they sell or remodel, under Chapter 12A of the Housing Code (SFPUC). DBI’s Housing Inspection Services does the compliance inspection, reachable at (628) 652-3700, and the city’s brochure says certified private inspectors can also do it.
The current standards on SFPUC’s page are:
- Toilets: 1.28 gallons per flush or less.
- Showerheads: 1.8 gallons per minute or less.
- Faucets and aerators: 1.8 gallons per minute or less.
- All plumbing leaks repaired.
Housing Code updates effective January 2026 changed these rates for existing fixtures, so a home that passed under the older standards may need new fixtures now. The water inspection applies at every sale; the energy inspection isn’t required for a building that already has recorded proof of energy compliance or was permitted for construction on or after July 1, 1978 (DBI brochure, July 2009).
Once the work is done, the city issues a certificate of compliance, which must be recorded with the County Recorder before or at the transfer of title, and the seller gives the buyer a copy. The 2009 brochure also describes shifting compliance to the buyer by putting 1% of the price in escrow with 180 days to finish, and warns that not all title companies hold those funds; confirm that option with DBI and your title officer before relying on it.
State law adds a related disclosure: under Civil Code §1101.4, a single-family seller must tell the buyer in writing about the state’s water-conserving fixture requirements and whether the property has noncompliant fixtures.
Step 3: Calculate the transfer tax
San Francisco’s transfer tax uses one rate for the entire price, based on the tier the price falls into; it isn’t a marginal tax (Assessor-Recorder). The rate is charged per $500 of price or portion of $500.
| Price | Rate per $500 | Example |
|---|---|---|
| More than $100 to $250,000 | $2.50 | $250,000: $1,250 |
| More than $250,000 to under $1,000,000 | $3.40 | $800,000: $5,440 |
| $1,000,000 to under $5,000,000 | $3.75 | $1,500,000: $11,250 |
| $5,000,000 to under $10,000,000 | $11.25 | $6,000,000: $135,000 |
| $10,000,000 to under $25,000,000 | $27.50 | $12,000,000: $660,000 |
| $25,000,000 or more | $30.00 | $30,000,000: $1,800,000 |
Tier lines matter. On our arithmetic, a $4,999,999 sale owes $37,500 while a $5,000,000 sale owes $112,500, so confirm the figure with your title officer on any price near a boundary. Who pays is negotiable and set by the purchase contract, so agree on it in writing.
At recording, the city requires a Transfer Tax Affidavit even when no tax is due, plus a Preliminary Change of Ownership Report. Exemptions must be documented at recording, and the affidavit lists lower maximum rates for qualifying rent-restricted affordable housing and certain residential rental transfers. Our San Francisco transfer tax guide goes into exemptions and entity transfers.
On the November 3, 2026 ballot
Proposition I would split the two top tiers, now 5.5% and 6%, into a general tax and a House SF tax for affordable housing at 2.75% and 3% each, so the combined rates would stay the same (Controller’s statement, August 10, 2026). Proposition J would end the transfer tax exemption for most foreclosure transfers to lenders from March 1, 2027, while keeping it for houses, condos and buildings with fewer than five units. Neither changes the rate on a typical home sale; we’ll update this page after the results are certified.
Step 4: Prepare the disclosures
San Francisco adds one disclosure of its own. Since 2019, Article 51 of the Police Code has required sellers of property in the SFPUC’s 100-year storm flood risk zone to tell buyers in writing before the sales contract or transfer of title (SFPUC, December 2024). Check the parcel on SFPUC’s flood map, and see our San Francisco hazard maps guide for the FEMA and seismic maps as well.
The state statements that most often apply in San Francisco:
- Smoke alarms: for a one- or two-unit home, a written statement that the property complies, delivered before title transfers (Health and Safety Code §13113.8).
- Water heater bracing: written certification that the water heater is braced, anchored or strapped (Health and Safety Code §19211).
- Earthquake guide: for a one-to-four-unit home of conventional light-frame construction built before 1960, deliver the Homeowner’s Guide to Earthquake Safety and disclose known weaknesses (Government Code §8897.1).
- Lead-based paint: for most housing built before 1978, the EPA pamphlet, any known lead information and a 10-day inspection opportunity for the buyer (EPA).
- Transfer disclosure and natural hazards: the state forms covering condition and mapped hazards; see California seller disclosures.
Sewer laterals and other items buyers ask about
SFPUC’s sewer lateral page describes no inspection required at sale. Owners are responsible for maintaining both the upper and lower lateral, though SFPUC repairs structural defects it confirms in the lower lateral at no extra cost in most cases, after the owner reports them through 311.
Buyers of older homes often order a camera inspection anyway, so a recent video can save a renegotiation. SFPUC also encourages a backwater valve where the lowest drain sits below the lateral’s vent, and the Floodwater Grant program may help pay for one.
A pre-listing inspection report and a termite report help in the same way. See pre-listing inspections for what to order and how to disclose the results.
Selling with tenants in place
If the home or building is rented, the buyer will ask which units are rent-controlled. Under the Rent Ordinance, the annual allowable increase for rent-controlled units is 1.6% from March 1, 2026 through February 28, 2027 (Rent Board).
Gather the leases, rent history, deposit records and any notices or buyout agreements before listing, and follow the state notice rules for showings. Our guides to selling a tenant-occupied home and San Francisco apartment buildings cover what changes for the buyer.
A practical timeline
- When you sign the listing agreement: order the 3R report and book the water and energy inspection.
- Before photos and marketing: replace noncompliant fixtures, order pre-listing and termite inspections, and check the flood map.
- Before offers are due: post the 3R report, inspections and seller disclosures for buyers to review.
- During escrow: deliver the remaining statements, get the certificate of compliance, and confirm the transfer tax figure and who pays.
- At closing: escrow records the deed with the Transfer Tax Affidavit, the Preliminary Change of Ownership Report and the water and energy certificate.
Estate and trust sellers follow the same city steps; see selling a house in probate for the court side. This is general information, not legal or tax advice; talk to a California real estate attorney or tax adviser about your situation.
Questions people ask
What is a 3R report in San Francisco?
The Report of Residential Building Record, issued by the Department of Building Inspection, lists a residential building’s building permit history. Housing Code §351 requires the seller to obtain it and deliver it to the buyer before selling.
How much does a 3R report cost and how long does it take?
$286 for each residential building on a lot, plus 2.5% for online card payment, and DBI says to expect it within seven to ten business days. Each condo or co-op unit needs its own request.
Who pays the transfer tax in San Francisco?
The purchase contract decides. Agree on it in writing and have your title officer confirm the amount, especially near a tier line such as $1 million or $5 million.
Is the transfer tax charged only on the amount above each tier?
No. The rate for the tier the price falls into applies to the entire price. A $1,500,000 sale pays $3.75 per $500 on the full amount, or $11,250.
Do I need a water conservation inspection if I passed one before?
Yes. The water requirement applies at each sale, and the standards changed in January 2026. The energy inspection is different: it isn’t required again once proof of energy compliance has been recorded for the building.
Does San Francisco require a sewer lateral inspection when I sell?
SFPUC’s sewer lateral page describes no requirement at sale. Many sellers order a camera inspection anyway because buyers of older homes ask for one.
What does the flood zone disclosure cover?
Whether the property is in SFPUC’s 100-year storm flood risk zone, disclosed in writing before the sales contract or transfer of title. FEMA flood zones are disclosed separately on the state natural hazard form.
Will the November 2026 transfer tax measures change my costs?
For most home sales, no. Proposition I keeps the combined top rates the same, and Proposition J deals with foreclosure transfers to lenders, not ordinary sales.
If you’re planning a San Francisco sale, we can line up the 3R report, inspections and disclosures and give you a net figure that includes the transfer tax. Request a home valuation to start.
Sources & notes
- City and County of San Francisco: Request a 3R report (sf.gov)
- SF Department of Building Inspection: 3R application form, June 2025 (Housing Code §351 text)
- SF Department of Building Inspection: Applying for a 3R report
- SF Public Utilities Commission: Residential water conservation requirements
- SF DBI and SFPUC: Residential energy and water conservation requirements brochure (July 2009)
- SF Environment: Residential Energy Conservation Ordinance
- SF Assessor-Recorder: Transfer tax (sf.gov)
- SF Assessor-Recorder: Transfer tax FAQs
- SF Assessor-Recorder: Transfer Tax Affidavit (rev. January 2025)
- SF Controller: Statement on Proposition I, August 10, 2026
- SF Board of Supervisors: Legal text, foreclosure transfer tax exemption measure (Nov. 2026)
- GrowSF: Proposition J summary (ballot letter confirmation)
- SFPUC: 100-Year Storm Flood Risk Map FAQs (December 2024)
- SFPUC: Sewer laterals
- SF Rent Board: Annual allowable rent increase, March 2026 to February 2027
- California Legislature (via California Public Law): Health and Safety Code §13113.8
- California Legislature (via California Public Law): Health and Safety Code §19211
- California Legislature (via California Public Law): Government Code §8897.1
- California Legislature (via California Public Law): Civil Code §1101.4
- U.S. EPA: Real estate disclosures about potential lead hazards
Last reviewed October 2026 by Matthew Martinez.
