California's new laws for 2025 introduce significant changes for real estate professionals, landlords, and tenants. Compliance is essential to avoid penalties and ensure smooth operations. Here's an overview of the key laws and practical examples to help you align your practices with these regulations.

1. Accessory Dwelling Unit (ADU) Amnesty Law

Law: Assembly Bill 2533 extends amnesty for unpermitted ADUs or junior ADUs built before 2020. Homeowners can legalize these units without paying impact fees unless health and safety violations require infrastructure updates.

Compliance Example:

• Scenario: A homeowner has an unpermitted ADU built in 2019.
• Action Steps:
• Schedule a confidential inspection by a licensed contractor to identify required repairs.
• Utilize the local government's online checklist for permit applications.
• Submit the application without worrying about impact fees unless major safety violations are identified.

2. Elevated Balcony Inspections

Law: Deadlines for balcony inspections in multifamily buildings with three or more units have been extended to 2026 (AB 2579), but condominiums still face a 2025 deadline. Licensed civil engineers are now authorized for these inspections (AB 2114).

Compliance Example:

• Scenario: An HOA managing a condominium project has not yet scheduled inspections.
• Action Steps:
• Contact a licensed civil engineer or structural engineer for immediate scheduling.
• Ensure the inspection report is completed by January 1, 2025, to avoid penalties.
• Educate homeowners about potential inspection fees and their role in maintaining safety standards.

3. Buyer Representation Agreements

Law: Assembly Bill 2992 mandates buyer representation agreements before submitting a property purchase offer.

Compliance Example:

• Scenario: A REALTOR® is working with a new buyer.
• Action Steps:
• Discuss the agreement early in the client relationship and explain terms like compensation and services provided.
• Use standardized forms that include mandatory disclosures about negotiable commissions.
• Set the agreement duration for no longer than three months and provide renewal options in writing if necessary.

4. Changes in Landlord-Tenant Laws

Lock Changes for Victims of Abuse

Law: Senate Bill 1051 requires landlords to change locks for tenants who are victims of abuse, with costs borne by the landlord.

Compliance Example:

• Scenario: A tenant requests a lock change due to domestic violence.
• Action Steps:
• Verify the request with documentation, such as a police report or a signed statement from a professional.
• Change the locks within 24 hours and document the process.
• If the landlord delays, tenants can proceed with the lock change and seek reimbursement within 21 days.

Application Screening Fees

Law: Assembly Bill 2493 restricts landlords from charging application fees unless units are available or the fees are refundable.

Compliance Example:

• Scenario: A landlord collects application fees for a property with no immediate availability.
• Action Steps:
• Avoid charging fees unless a unit is available.
• If fees are collected, refund applicants who are not selected within the required timeframe.
• Provide applicants with their credit reports if fees were charged.

Security Deposit Deductions

Law: Assembly Bill 2801 requires landlords to provide move-in, move-out, and post-repair photos when claiming deductions from security deposits.

Compliance Example:

• Scenario: A landlord wants to deduct carpet cleaning costs after a tenant moves out.
• Action Steps:
• Take time-stamped photos before the tenant moves in and after they vacate the unit.
• Document any damage and repairs with post-repair photos and provide a written explanation of costs.
• Share these photos and explanations via email or online links for transparency.

5. Small Business Tenant Protections

Law: Senate Bill 1103 grants small businesses protections similar to residential tenants, including notice requirements for rent increases and lease translations.

Compliance Example:

• Scenario: A landlord wants to raise rent for a small restaurant tenant.
• Action Steps:
• Provide a 90-day written notice for rent increases exceeding 10%.
• Translate the lease into the tenant's primary language if it was negotiated in that language.
• Ensure all operating costs are proportionally allocated and provide supporting documentation.

6. Probate Simplification

Law: Assembly Bill 2016 increases the small-estate probate threshold to $750,000 for primary residences.

Compliance Example:

• Scenario: An heir wants to inherit their deceased parent's home worth $700,000 without probate.
• Action Steps:
• File a petition in superior court 40 days after the decedent's passing.
• Notify all heirs and devisees with a notice of the petition.
• Present evidence that the property's value qualifies for the small-estate exception.

7. Pool and Spa Safety

Law: Senate Bill 552 updates safety requirements and mandates inspectors to verify the operability and labeling of drowning prevention features.

Compliance Example:

• Scenario: A home inspector evaluates a property with a pool.
• Action Steps:
• Check if the pool has two required safety features, such as alarms or fences.
• Verify that features are operational and labeled appropriately.
• Include findings in the inspection report, noting any repairs needed.

8. Updates in Foreclosure Practices

Law: Assembly Bill 2424 adds delays to foreclosure sales if borrowers provide listing agreements or purchase offers.

Compliance Example:

• Scenario: A homeowner facing foreclosure secures a listing agreement.
• Action Steps:
• Send the agreement to the trustee at least five business days before the sale date via certified mail.
• Ensure tracking confirms receipt to qualify for the 45-day postponement.
• Repeat the process if a bona fide purchase agreement is secured.

9. Intersectionality in Civil Rights

Law: Senate Bill 1137 recognizes discrimination based on a combination of protected characteristics, expanding fair housing protections.

Compliance Example:

• Scenario: A landlord denies housing to a tenant based on their hairstyle and marital status.
• Action Steps:
• Review internal policies to ensure no bias based on intersectional characteristics like race, gender, or hairstyle.
• Train staff to recognize and eliminate discriminatory practices.
• Implement a grievance procedure for addressing discrimination claims.

10. Mobilehome Tenancy Protections

Law: Assembly Bill 2304 extends unlawful detainer masking rules to mobilehome tenancies.

Compliance Example:

• Scenario: A tenant in a mobilehome park faces eviction.
• Action Steps:
• Ensure case records remain confidential for 60 days after filing.
• Review eviction processes to comply with masking rules and protect tenant privacy.

Staying Ahead

These laws underscore California's commitment to protecting tenants, homeowners, and small businesses while enhancing transparency in real estate practices. By adopting proactive compliance strategies, REALTORS®, landlords, and real estate professionals can navigate these changes seamlessly, safeguard their operations, and build trust with their clients and tenants.