In 2025, California’s real estate landscape is undergoing significant changes with the implementation of new laws that will affect both real estate agents and clients. These legislative updates are designed to streamline property transactions, ensure greater transparency, and enhance protections for renters and buyers. Realtors in California must stay informed about these changes in order to provide the best service to their clients while remaining compliant with state regulations.
Assembly Bill 2992: Changes to Buyer-Broker Relationships
One of the most significant pieces of legislation in California real estate for 2025 is Assembly Bill 2992, which modifies the existing laws around buyer-broker relationships. The bill amends Section 10147.5 of the Business and Professions Code, making it mandatory for real estate brokers to clearly disclose the terms of their agreements with buyers in writing. This change comes as part of California’s broader effort to increase transparency in real estate transactions and ensure that all parties involved in a deal fully understand their rights and responsibilities.
Under the new law, brokers must provide buyers with written disclosure about the services being offered, the compensation structure, and any conflicts of interest. Additionally, the law requires that any changes to the terms of the buyer-broker agreement be communicated to all parties promptly.
The goal of this bill is to protect buyers from hidden fees and ensure that brokers act in their clients’ best interests. For realtors, this means more upfront communication and documentation, as well as a heightened focus on compliance with state guidelines.
Senate Bill 164: Inspection Requirements and Fair Housing Practices
Another important legislative update in 2025 is Senate Bill 164, which amends Sections 10208.5, 10209, and 10210 to address property inspection requirements and fair housing practices. The bill mandates stricter inspection protocols for certain types of properties, particularly those that may pose health or safety risks. This includes properties with known issues such as lead paint, asbestos, or electrical hazards. Realtors must ensure that all inspection reports are up-to-date and accurate, as failure to provide a proper inspection could lead to legal consequences.
In addition to inspection requirements, Senate Bill 164 also introduces additional protections against discrimination in housing practices. The bill enhances fair housing laws by prohibiting landlords and sellers from discriminating against potential buyers or renters based on their race, ethnicity, sexual orientation, or other protected characteristics. This is part of California’s ongoing commitment to ensuring that all individuals have equal access to housing, regardless of background.
Rent Control and Tenant Protections
California has also enacted stricter rent control measures in 2025, particularly in cities like Los Angeles and San Francisco, where housing affordability is a major concern. Under California State Assembly Bill 987, which expands rent control regulations, landlords are now required to limit annual rent increases to no more than 5% of the current rent or 10% of the market rate, whichever is lower.
Additionally, tenants are now afforded more protections against eviction. The bill strengthens tenant rights by making it more difficult for landlords to evict tenants without just cause. Realtors working in rental markets must now be aware of these laws and ensure that both tenants and landlords understand their rights and responsibilities.
How REALTORS Can Adapt to New Regulations
As the regulatory landscape continues to evolve in 2025, realtors must stay informed and adaptable. For many real estate professionals, the key to success will be embracing these changes and ensuring compliance while maintaining excellent service for clients. Continuing education, including certifications and training in legal compliance, is essential for staying ahead of regulatory shifts.
Moreover, realtors should work closely with legal advisors to ensure that all contracts, disclosures, and documents are fully compliant with the new laws. By taking proactive steps, real estate professionals can build trust with their clients and continue to thrive in an ever-changing market.
