AB 2424, Squatters & California Law in 2026: An Explainer

Key takeaway: AB 2424, effective in 2025, is a California foreclosure law that gives owners time to sell their property before a trustee's sale. It is not a squatter law. Squatter and trespass issues are governed by separate laws, including updates from SB 602.

As title professionals serving the South Bay and Westside, we constantly see confusion around new real estate laws. A major point of misunderstanding for homeowners and agents in 2026 is Assembly Bill 2424. Many people believe it’s a “squatter law,” but its real purpose is to regulate the foreclosure process. This article clarifies what AB 2424 does, explains the actual laws concerning squatters in California, and provides actionable steps for property owners.

What is AB 2424? A Foreclosure Law, Not a Squatter Bill

Let's be clear: AB 2424 has nothing to do with removing unauthorized occupants. It is a foreclosure-specific law that went into effect on January 1, 2025. Its primary goal is to give homeowners in foreclosure a better chance to sell their property on the open market, rather than losing it at a trustee's sale where prices are often lower.

AB 2424 introduces two key provisions for property owners facing foreclosure:

1. A Two-Step Postponement of the Trustee's Sale: A homeowner can delay a scheduled foreclosure sale by a total of approximately 90 days if they follow a specific process.

   • First 45-Day Postponement: The owner must secure a listing agreement with a licensed California real estate broker. A copy of this agreement must be delivered to the foreclosure trustee at least five business days before the scheduled sale date. This gives the owner and their agent an initial window to market the property.
   • Second 45-Day Postponement: If a buyer is found, the owner can secure a second delay. They must deliver a signed purchase and sale agreement to the trustee, again at least five business days before the new sale date.

2. A Fair Market Value Bid Floor: The law establishes a minimum price for the property at its first scheduled trustee's sale. The trustee cannot accept a winning bid that is less than 67% of the property’s fair market value.

This law is a significant tool for agents working with distressed sellers. It creates a structured opportunity to avoid foreclosure auction and maximize the seller's equity. However, it provides no remedy for dealing with a person occupying a property without permission.

The Real Squatter & Trespass Laws: SB 602 and Unlawful Detainer

If AB 2424 isn't the squatter law, what is? The most recent significant change in this area was Senate Bill 602, which took effect in January 2024. SB 602 made it easier for property owners to deal with trespassers by streamlining the existing process.

Before SB 602, a property owner's letter authorizing law enforcement to remove trespassers was often valid for only 30 days. This created a constant administrative burden. SB 602 improved this system significantly.

Key changes from SB 602 include:

• One-Year Validity: A trespass authorization letter filed with the local sheriff's department is now valid for a full year.
• Authorized Agents: Owners can designate an authorized agent, such as a property manager or attorney, to sign and file the trespass letter on their behalf.
• Electronic Filing: The law permits electronic filing of these authorization letters, making the process faster and more efficient for property owners.

While SB 602 helps, it doesn't guarantee immediate removal. If a person has established some form of occupancy, even without a lease, police may be hesitant to act, classifying the situation as a civil matter. In that case, the owner's remedy is a formal eviction process.

This court action is known as an unlawful detainer. It is the legal procedure required to remove someone who is occupying a property without a legal right to be there. This includes former tenants who won't leave, but also squatters who never had permission in the first place. The process involves serving formal notice, filing a lawsuit, and obtaining a court order for removal by the sheriff.

Understanding Squatting vs. Adverse Possession in California

Another source of confusion is the difference between a squatter (a trespasser) and a person claiming ownership through adverse possession. These are legally distinct concepts.

Squatting is simply occupying property without the owner's consent. A squatter is a trespasser and has no rights to the property.

Adverse possession, on the other hand, is a very rare legal doctrine where a person can, over a long period, acquire legal title to a property they do not own. The requirements in California are incredibly strict and difficult to meet. A person trying to claim adverse possession must prove all of the following:

• Hostile Possession: They must occupy the property without the owner's permission and against the owner's rights.
• Actual, Open, and Notorious Possession: Their presence must be obvious, not hidden. It should be clear to anyone, including the owner, that someone is living there.
• Exclusive and Continuous Possession: They must possess the property exclusively and without interruption for a period of five continuous years.
• Payment of Property Taxes: Crucially, the claimant must have paid all property taxes assessed against the property for the entire five-year period.

Because of the property tax requirement, successful adverse possession claims are extremely uncommon in California. A squatter who is not paying the taxes can never gain ownership through this doctrine, no matter how long they stay.

How California Property Owners Can Remove Unauthorized Occupants

If you discover someone is occupying your property without permission, you must act quickly and methodically. Time is not on your side.

1. Contact Law Enforcement Immediately: Your first call should be to the local police or sheriff's department. Report a trespasser. If you have a valid trespass authorization letter on file (thanks to SB 602), this process may be more straightforward.
2. Do Not Confront the Person: Avoid direct confrontation, changing the locks, or shutting off utilities. These actions, known as "self-help evictions," are illegal in California and can expose you to significant legal liability, even if the person is there without permission.
3. Post Notices: If law enforcement determines it's a civil matter, you must proceed with a formal eviction. This starts with serving a legal notice. A "Notice to Quit" is typically required, giving the occupant a short period (often three days) to leave the property.
4. File an Unlawful Detainer Lawsuit: If the person does not leave after the notice period expires, you must file an unlawful detainer lawsuit in Superior Court. This is a summary proceeding designed to be faster than a typical civil lawsuit.
5. Obtain a Writ of Possession: If you win the case, the court will issue a judgment and a "Writ of Possession." This document is given to the sheriff's department, which will then schedule and execute the physical removal of the occupant.

This process can be complex. We always recommend consulting with a qualified real estate attorney to ensure every step is handled correctly.

FAQ: Common Questions on AB 2424, Squatters, and California Law

Is AB 2424 the California squatter law for 2026?

No. This is the most common misconception. AB 2424 is a foreclosure law that allows homeowners to postpone a trustee's sale to give them time to sell the property on the open market. It has no provisions for removing squatters. Trespass and unauthorized occupancy are handled by the Penal Code, the Civil Code, and procedures like unlawful detainer lawsuits.

How does AB 2424 actually help a homeowner in foreclosure?

It provides breathing room. By pausing the foreclosure sale for up to 90 days, it gives a homeowner and their real estate agent a realistic timeframe to find a buyer, open escrow, and close the sale. This often results in a higher sales price, preserving the owner's equity and preventing the negative impact of a foreclosure on their credit.

Can police remove squatters immediately in California?

Sometimes, but not always. If the person has just arrived and it's a clear case of trespassing, police may remove them. However, if the person has been there for some time or makes a claim (however flimsy) that they have a right to be there, police will often defer to the civil court system to avoid wrongfully evicting someone. This forces the owner to file an unlawful detainer case.

How long does a squatter have to be on a property to claim rights?

A squatter does not gain rights simply by occupying a property for a certain amount of time, like 30 days. The concept of gaining ownership requires meeting the stringent adverse possession requirements, including five years of continuous possession and paying all property taxes. Without paying the taxes, a squatter can never legally claim ownership.

Navigating transactions involving foreclosure, distressed sales, or occupancy issues requires a knowledgeable and proactive title team. If you are an agent or owner dealing with a complex situation in the South Bay or Westside, you need a partner who understands the nuances of California law. For expert guidance and a smooth closing, please contact us, Matt Goeglein and Xavier de la Piedra IV, at Team Goeglein.