New California Real Estate Laws for 2025: For Agents & TCs
- Oasis Singleton
- Aug 23
- 3 min read
California's 2025 legislative updates significantly impact how agents, brokers, and transaction coordinators manage transactions, disclosures, and client representation. Below is a breakdown of the most relevant new laws that affect your daily workflow, with internal links to our in-depth blogs for deeper guidance.
1. Buyer Representation Agreements (AB 2992)
Starting January 1, 2025, written buyer–broker agreements will be mandatory before submitting an offer—a major shift that affects how agents represent buyers across all property types.
✈️ Learn how this shift is transforming the industry in Buyer Representation Agreements: What You Need to Know About New Requirements of California AB 2992.
2. Revised Purchase Agreement & Compensation Disclosure Forms
The C.A.R. Residential Purchase Agreement (RPA) now includes:
Mandatory compensation disclosure
New buyer agency status confirmation
Addenda like TOBR, CAC, and ECC forms
Want to make your transactions smoother? Review Breaking Down the Steps of a Smooth Real Estate Transaction to reduce friction under the new rules.
3. New Advisory Forms for TCs & Agents
Forms like SIPA, SVRA, and FHDS should be reviewed for updates.
4. ADU Amnesty, Balcony Compliance & Fire Safety
Several 2025 laws impact property condition disclosures and safety compliance. AB 2533 provides amnesty for certain unpermitted Accessory Dwelling Units (ADUs), giving homeowners a pathway to legalize existing structures. Meanwhile, balcony inspections mandated under SB 721 and SB 326 (for multifamily and condo properties) remain a key safety requirement, even with extended deadlines. Additionally, fire sprinkler testing and defensible space inspections are increasingly regulated in high-risk areas, especially for listings in wildfire zones. These changes reinforce the agent’s responsibility to guide sellers through condition-related compliance early in the transaction. ➡️ For help organizing these disclosures, read Read Mastering Disclosure Structure and Sequencing: Mitigating Liability Risks in Real Estate.
5. Mandatory Balcony Element Inspections Postponed (AB 2579 / SB 326)
Initial deadlines under SB 721 and SB 326 were extended to January 1, 2026.
SB 721 applies to apartment buildings; inspections every 6 years.
SB 326 covers condo/HOA buildings; inspections every 9 years.
Check local jurisdiction for city-specific compliance rules—especially in San Francisco and LA.
6. Domestic Water Storage Tank Disclosure (SB 1366)
Sellers must now disclose if they have received public assistance for installing a domestic water storage tank (e.g., for fire safety or drought mitigation purposes) on the property.
7. Electrical System & Gas Appliance Disclosures Coming (SB 382 – Effective 2026)
While effective January 1, 2026:
Sellers must report whether they replaced gas appliances or conducted an electrical safety inspection.
Prepare now to update your sellers on the need for this additional disclosure. We will likely see updates to the form SPQ via C.A.R. or a new disclosure entirely for this law.
✅ Quick Reference Table
Bill | Effective Date | Who It Affects | What You Must Do |
AB 2992 | Jan 1, 2025 | All buyer’s brokers and agents | Signed buyer rep agreement before offer |
CAR Updates | June 2025 | All agents/TCs | Use new advisory and compensation forms |
AB 2533 | Jan 1, 2025 | Unpermitted ADU owners | Inform buyers of amnesty options |
AB 2579 | Jan 1, 2026 | Condo/apartment owners | Schedule EEE safety inspections |
SB 1366 | Jan 1, 2025 | Sellers w/ agricultural structures | Disclose water tank subsidies |
SB 382 | Jan 1, 2026 | Sellers w/ electrical/gas changes | Prepare disclosure records |
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