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Writer's pictureMaxwell Shenk

New California Laws Effective January 2025: What You Need to Know


California Real Estate Law

As we approach January 2025, several new laws and regulations will come into effect in California, impacting housing, real estate transactions, and landlord-tenant relationships. Below is a summary of key bills and their implications. Please note that some cities and counties may have additional codes or regulations.


Housing and Construction Laws


Assembly Bill 2533: ADU Amnesty Program

This bill extends the Accessory Dwelling Unit (ADU) amnesty law to unpermitted ADUs and Junior ADUs (JADUs) built before 2020. Local agencies cannot deny a permit for such units unless they determine that a correction is necessary to comply with conditions that would deem the building substandard. This is a major step toward legalizing unpermitted ADUs, addressing California's housing shortage.


Assembly Bill 2579: Balcony Inspections Deadline Extension

The deadline for inspecting wooden balconies and other elevated elements in buildings with three or more multifamily units has been extended from January 1, 2025, to January 1, 2026. Property owners have more time to comply with safety standards.


Assembly Bill 2622: Contractor Licensing Exemption

Contractors are not required to hold a license for projects with an aggregate cost under $1,000 if the work doesn’t require a building permit or additional workers. This simplifies minor home repairs and renovations.


Senate Bill 552: Pool Safety Inspections

Home inspections for properties with swimming pools or spas must now include a review of drowning prevention safety features. Inspectors are required to report whether these features are in good repair, operable, and properly labeled.


Real Estate Transaction Laws


Assembly Bill 2992: Buyer Representation Agreements

Real estate agents representing buyers must now execute a buyer representation agreement before the buyer makes an offer. This requirement increases transparency and formalizes the relationship between buyers and their agents.


Landlord-Tenant Laws


Senate Bill 1051: Lock Change Protections

Expanding on existing protections for victims of abuse, landlords must now change locks at the tenant's request. These protections extend to immediate family or household members, and landlords cannot take adverse action against prospective tenants who have utilized this protection in the past.


Assembly Bill 2493: Application Screening Fees

Landlords and their agents are prohibited from charging application screening fees when no rental unit is available or will become available within a reasonable timeframe. This protects prospective tenants from unnecessary costs.


Assembly Bill 2747: Reporting Positive Rental Payments

Residential landlords must now offer tenants the option to report positive rental payment information to at least one nationwide consumer reporting agency. Small landlords (15 or fewer units) are exempt unless they own multiple buildings and operate as a real estate investment trust, corporation, or LLC.


Assembly Bill 2801: Documentation for Security Deposit Deductions

Landlords must now document move-in, move-out, and post-repair conditions with photos when deducting from a tenant’s security deposit. Cleaning and repair costs must be “reasonably necessary” to return the property to its original condition.


Senate Bill 611: Fee Restrictions

Landlords are prohibited from charging fees for serving termination notices (e.g., pay-or-quit notices) or for tenants paying rent or security deposits via check. This eliminates certain fees that could add financial strain on tenants.


Preparing for 2025

These laws aim to improve housing affordability, streamline real estate transactions, and enhance tenant protections. Property owners, landlords, and real estate professionals should review these updates to ensure compliance. For further details, visit the official California Association of Realtors website or consult with a legal professional.


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