Does the CLRA apply to real estate transactions?

What the Law Says

The CLRA explicitly excludes real estate transactions from its scope of protection.

The California Consumers Legal Remedies Act (CLRA) is designed to protect consumers from unfair and deceptive business practices in the sale or lease of goods and services. However, it contains a clear statutory exemption for real estate.

Under Civil Code section 1762(b), the definition of 'services' — which the CLRA covers — expressly excludes 'the sale or lease of real property.' This means that transactions involving homes, land, commercial buildings, or any interest in real estate fall outside the CLRA’s protections, whether the buyer is purchasing a primary residence or investment property.

Statutory Text

‘Services’ means work, labor, and services for other than a commercial or business use, and includes services furnished in connection with the sale or repair of goods, but does not include the sale or lease of real property.

— Cal. Civ. Code § 1762(b) — Definition of 'services'

Sources