2025 California Real Estate Law Changes

The California Association of Realtors has outlined numerous legislative changes for 2025 that significantly impact real estate transactions. These changes span ADU regulations, balcony inspections, buyer representation agreements, common interest developments, disclosures, fair housing, foreclosure processes, landlord-tenant laws, loan fraud, mobile homes, probate, and swimming pool safety requirements. All laws are effective January 1, 2025 unless otherwise noted.

ADU Amnesty: The amnesty law for unpermitted ADUs and JADUs is extended to those built before 2020, requiring cities and counties to provide a clear permitting process. Balcony Inspections: The deadline for inspections is extended to January 1, 2026 for buildings with three or more multifamily dwelling units (excluding condominiums). The list of authorized inspectors is expanded to include civil engineers.

Buyer Representation Agreements: These agreements must be executed before the buyer's offer, cannot exceed three months, and must clearly state that realtor compensation is negotiable. Fair Housing: The Unruh Act is expanded to include traits associated with race, such as hairstyles. The concept of 'intersectionality' is recognized, meaning discrimination claims can involve multiple protected characteristics.

Foreclosure: A 90-day delay is imposed on solicitations for surplus funds from foreclosed homeowners. Foreclosure sales are postponed by 45 days upon receiving a listing agreement or an executed purchase agreement meeting specific criteria. The trustee cannot sell the property below 67% of its fair market value at the initial sale. Loan Fraud: The definition now encompasses misleading borrowers into obtaining bridge loans under false pretenses.

Landlord-Tenant: The law expands the landlord's duty to change locks upon a tenant's request due to abuse. Landlords are prohibited from charging application fees unless a unit is available within a reasonable time. Tenants gain the right to have positive rental payment history reported to credit agencies. Probate: The small estate exception limit is raised to $750,000 for a decedent's primary residence, allowing asset distribution outside probate.

Team Goeglein at Fidelity National Title stays current on every legislative change that affects title and escrow in California. Matt Goeglein and Xavier de la Piedra IV ensure that every closing in the South Bay complies with the latest laws and regulations — protecting both agents and their clients.