Bill Refresher: Laws for California Property Owners & Real Estate Licensees
Published: July 21, 2025
As California's housing landscape continues to evolve, laws are introduced to bolster transparency, sustainability, and equity in property ownership and sales. Whether you're a homeowner, investor, or planning to sell property soon, it's important to understand how these changes may affect you.
These laws reinforce the importance of full and honest disclosure in all housing transactions. Property owners are expected to clearly communicate relevant information about the condition of their property, the roles of any third-party agents, and any factors that may affect the buyer or tenant's decision. This helps build trust and reduces the risk of disputes during or after the sale.
With the increasing commitment in California to energy-efficient housing, homeowners may encounter expectations around reporting utility usage or meeting certain environmental standards. This is seen especially when renovating, upgrading systems, or listing homes for sale. These steps are designed to reduce emissions and improve the long-term value and performance of residential properties.
Property sellers and landlords should be aware of expanded protections for tenants, particularly survivors of domestic violence and other vulnerable populations. Laws now place stricter limits on evictions or property transitions that could displace protected tenants, making it essential to handle such matters with care and legal compliance. Take a look at our list below for a refresher on housing-related laws.
What You Need to Know
AB 1280 (Maienschein, Chapter 99, Statutes of 2023): revises the Natural Hazard Disclosure Statement that a seller of single-family residential property is required to provide a buyer. It now requires the statement to include whether the property is located within a high fire hazard severity zone, whereas previous law only required the disclosure of a very high fire hazard severity zone. Additionally, the statement must indicate whether the property is located in a state responsibility area or a local responsibility area. Responsibility areas indicate who must provide fire protection.
AB 968 (Grayson, Chapter 95, Statutes of 2023): requires the seller of a single-family residential property to disclose work done on the property, if the seller obtained title of the property within the previous 18 months. Specifically, the law requires the seller to provide information regarding all room additions, structural modifications, alterations, or repairs made to the property since obtaining title if they were performed by a contractor. Only contracts totaling $500 or more are required to be reported. The name of each contractor with whom the seller entered into a contract for the work and copies of permits must also be disclosed. This disclosure requirement applies on or after July 1, 2024.
AB 1345 (Hart, Chapter 577, Statutes of 2023): makes it unlawful for an exclusive listing agreement for the sale of a single-family residential property to last longer than 24 months and for renewals to last longer than 12 months. For purposes of this measure, exclusive listing agreement also includes any agreement to enter into a future one. In addition, the new law makes it unlawful to present an exclusive listing agreement for recording with a county recorder. Exclusive listing agreements lasting longer than 24 months are void and unenforceable and recordings of any exclusive listing agreement are void and enforceable. A violation of this new law will be considered a violation of a person's licensing law, thereby authorizing the Department of Real Estate to take action against a real estate licensee's professional license.
AB 225 (Grayson, Chapter 420, Statutes of 2023): requires, as existing resources permit or as private resources are made available, that the next update of the Homeowners' Guide to Environmental Hazards booklet include information regarding wildfires, climate change, and sea level rise. The bill requires the Department of Toxic Substances Control to seek the advice and assistance of the departments in the Natural Resources Agency in updating the booklet.
SB 455 (McGuire, Chapter 873, Statutes of 2023): requires a mortgage servicer, when transferring a mortgage to another servicer, to transmit to this new mortgage servicer any written records regarding the borrower's decision to use insurance proceeds to repair or replace property damaged during a proclaimed state or local emergency. This applies to residential properties with up to four dwelling units or mobile homes. The bill also requires the new servicer to honor a previous written agreement to repair the property if approved by the prior servicer, borrower, and owner of the promissory note.
SB 887 (Committee on Business, Professions and Economic Development , Chapter 510, Statutes of 2023): among other provisions, allows the Department of Real Estate to accept applications to the Consumer Recovery Account electronically, in a manner prescribed by the department.
