California is introducing significant real estate legislative changes in 2025. These laws aim to address housing challenges, enhance tenant protections, and promote transparency in property transactions. Here’s a summary of the key changes:
1. Buyer Representation Agreements (AB 2992)
Effective Date: January 1, 2025
Real estate agents must establish formal written agreements with buyers before submitting property purchase offers. These agreements will clarify the scope of services and compensation terms, fostering transparency in real estate transactions.
Learn more about AB 2992
2. Tenant Rent Payment Credit Reporting (AB 2747)
Effective Date: January 1, 2025
Landlords of residential buildings with 15 or more units must offer tenants the option to report their rent payments to credit agencies. This initiative helps tenants build credit through consistent rent payments.
More on AB 2747
3. Accessory Dwelling Unit (ADU) Amnesty Law (AB 2533)
Effective Date: 2025
Homeowners can legalize unpermitted ADUs or junior ADUs built before 2020 without incurring impact fees, provided there are no significant health and safety violations.
Details about AB 2533
4. Elevated Balcony Inspections (AB 2579 and AB 2114)
Deadline for Compliance:
- Condominiums: 2025
- Multifamily Buildings (3+ units): 2026
Licensed civil engineers are now authorized to conduct mandatory inspections of balconies in multifamily buildings.
Inspection law details
5. Security Deposit Deductions (AB 2801)
Effective Date: January 1, 2025
Landlords must provide photographic evidence from move-in, move-out, and post-repair stages when making deductions from security deposits.
More about AB 2801
6. Small Business Tenant Protections (SB 1103)
Effective Date: 2025
Small business tenants will now have protections similar to those of residential tenants, including mandatory notice periods for rent increases and lease translation requirements.
Read more about SB 1103
7. Accessory Dwelling Units (ADUs) Expansion (SB 1211)
Effective Date: 2025
Allows up to eight detached ADUs on a single lot, as long as the number of detached units does not exceed existing primary units.
Details on SB 1211
8. Builder’s Remedy Projects (AB 1893)
Effective Date: 2025
Reforms to the Housing Accountability Act impose specific site restrictions, density limits, and objective local standards to housing projects to address California’s housing crisis.
More about AB 1893
Green Real Estate Appraiser 