With evolving property laws and stricter regulations on the horizon, staying compliant in 2025 is more critical than ever. Non-compliance can lead to costly penalties, damages, and legal fees—here’s are some key real estate laws and how they can impact you and your clients.
AB2533: Extends the ADU amnesty law to unpermitted ADUs and junior ADUs built before 2020
Effective January 1, 2025
Cities and counties must inform the public about the ADU amnesty rules through public information resources, including permit checklists and the local agency’s internet website. A homeowner applying for a permit for a previously unpermitted accessory dwelling unit or junior accessory dwelling unit constructed before January 1, 2020, shall not be required to pay impact fees or connection or capacity charges except when utility infrastructure is required to comply with above mentioned health and safety violations.
AB 2747: Tenant Rent Payment Credit Reporting
Effective January 1, 2025
Landlords of properties with 15 or more units must offer tenants the option to report their rent payments to credit reporting agencies. This offer applies at lease signing for new tenants and annually for existing tenants. Tenants can opt in or out at any time. The law caps fees for this service at $10 or the actual cost, whichever is lower, to prevent excessive charges.
AB 2016: Raises the limit of the small-estate exception
Effective January 1, 2025
A decedent’s real property used as a primary residence may be disposed of outside of probate administration when the gross value does not exceed $750,000. In lieu of probate administration, a successor may petition the court to determine succession. This increased limit will be in effect for the period starting April 1, 2025, through March 31, 2028, after which the value would be adjusted at a three-year interval based on the Consumer Price Index.
SB 900: HOA Utility Maintenance Authority
Effective January 1, 2025
When HOAs fail to act, property managers can step in to address utility repairs for HOA-governed properties. This proactive approach helps minimize tenant complaints and avoid disputes that could escalate into legal action.
AB 2216: Common Household Pets Cannot Be Prohibited
Effective January 1, 2025
Landlords can no longer ban common household pets without a reasonable justification. This amendment to Civil Code 1950.5 prioritizes tenant flexibility while balancing property management concerns.
AB 2493: Tenant Screening Fee Transparency
Effective January 1, 2025
Landlords must provide applicants with a copy of their consumer report within 7 days of receipt, removing the burden on applicants to request it.
SB 552: Swimming Pool & Spa Safety Requirements
Effective January 1, 2025
This law updates the requirements of a home inspection to allow that the noninvasive examination of the pool or spa does not require a determination as to whether the pool or spa safety features meets the specifications for pool or spa safety features as specified in the HSC, but does require the home inspection report to identify whether the features are in good repair, operable as designed, and appropriately labeled, if required. It also requires labels be affixed to specified pool and spa safety features verifying that they meet certain standards.
For a full list of real estate laws taking affect in 2025, visit https://www.car.org/riskmanagement/qa/New-Laws/2025-New-Laws.
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