How Does Megan's Law Affect Real Estate Listings?

This law was created in response to an actual event that happened in New Jersey. In 1994, there was a tragic rape and murder of a 7-year-old girl named Megan Kanka. Her killer was a neighbor and he had been previously convicted of sexual crimes against a minor.

At this time, there was no way to research a person convicted of sexual crimes. To prevent a similar situation from happening again, lawmakers introduced Megan’s Law.

Megan’s Law is a federal law that requires convicted sex offenders to enter their names on a registry. Some states also require these offenders to notify their community when they relocate. This action is considered part of SORN, Sex Offender Registration and Notification, laws. 

So, interesting information — but what does it have to do with real estate?

Megan’s Law and Buyers

As an agent, Megan’s Law directly affects your work with both buyers and sellers. Let’s begin with what it means when you represent a buyer.

Buying a home is an exciting and emotional milestone. For most people, it’s the largest investment they’ll ever make a chance to plant roots, build a family, and create stability. When you guide clients to the house of their dreams, everyone is naturally thrilled.

Your buyers have found the house, their offer is accepted, and escrow opens. Because escrow is a legal and binding contract, every step must be handled precisely—especially the disclosures. Sellers provide a disclosure package that covers the property and its surrounding area.

Statutory notice (Cal. Civ. Code § 2079.10a / Pen. Code § 290.46)

NOTICE: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet website maintained by the Department of Justice at the official site. Depending on an offender’s criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides.

One document in that packet is the Megan’s Law disclosure. It tells buyers exactly where to find information about registered sex offenders—crucial for families with young children. In California, anyone can visit the website, enter an address, and see whether offenders live nearby.

Armed with those results, buyers can evaluate the neighborhood and decide whether to move forward. If the search is unfavorable, they may cancel escrow and retrieve their earnest‑money deposit.

For buyers, Megan’s Law is a powerful tool for ruling out homes in areas where registered offenders reside. But what happens when you’re representing the seller?

Does Megan’s Law Hurt Sellers?

At face value, it may seem that Megan’s law can hurt a homeowner’s chance of selling their home. After all, the database shows where all registered sex offenders currently live and it could lessen their chances of selling their homes.  

Also, the database does not take into account that the homeowner may have purchased their home BEFORE an offender moved into the area. 

Is it fair that this information can immediately lower the value of their house? Is it right that it may make it more difficult to sell their home? We don’t think so, and neither does the state of California.

So let’s talk about how this works when you are representing the seller.   

It comes back to the disclosures. As a real estate agent representing the seller, it is your responsibility to give the disclosures to the buyer. This includes everything that the seller is aware of regarding the property and the area. 

The key phrase is “everything that the seller is aware of”. It’s important to remember that you only have to disclose the information you know — you don’t have to do research beyond what you already know to be true.

Where the Megan’s Law notice appears in 2025 forms

Since the December 2024 update to the California Residential Purchase Agreement (C.A.R. Form RPA, rev. 12/24), the Megan’s Law language is pre‑printed in Paragraph 10(D). Most transactions no longer use a separate “Megan’s Law Database Disclosure” (Form DBD); agents simply have the parties initial Paragraph 10(D) with the other statutory disclosures.

If you are using an older contract or a non‑C.A.R. form, attach the current Disclosure for Buyers of Residential Property – Megan’s Law (C.A.R. Form DBD, rev. 6/22) to remain compliant.

While buyers understand that this information is out there and available, some may choose NOT to do their due diligence on the neighborhood. This means that the information potentially doesn’t become a factor in choosing to proceed with the escrow.   

When buyers acknowledge the notice, they simply confirm they have received it and understand they are responsible for checking the registry on their own if they wish.

In this way, the information is disclosed, the seller is not adversely affected and has an equal opportunity to sell their home.

Final Thoughts About Megan’s Law

As an agent, your responsibility is to provide the proper disclosures to your client and protect their interests. We know that disclosures are designed to both inform and protect both you and who you are representing. 

Not disclosing this information will hurt you as an agent. If you don’t disclose this information for fear of not selling the listing, the buyer can sue you and your seller if they discover a sexual predator after the transaction. 

The same situation can happen if you are representing the buyer. Don’t fail to properly inform your buyer because you believe it will affect their decision to buy. In the end, it is not worth the liability.  

It is understandable that having to discuss or disclose the topic of sexual predators can be uncomfortable. That is why Megan’s Law Disclosure is so crucial. But it is necessary, so it’s important to not bury any facts. We can’t stress this enough.