Key new laws and legal changes taking effect in California in 2026 that will affect residential real estate

Here’s a summary of key new laws and legal changes taking effect in California in 2026 that will affect residential real estate, including rentals, sales, development, and disclosures. These are important for REALTORS®, landlords, sellers, buyers, and property managers to know:

🏠 1. Mandatory Kitchen Appliances in Rental Units (AB 628)

Effective: January 1, 2026

• Landlords must provide a working refrigerator and stove (or equivalent cooking appliance) in rental units as part of the basic habitability standard.

• Previously, appliances were often optional; now they are considered essential.

• Tenants may supply their own refrigerator only if agreed in writing, but the landlord must provide one upon 30-day notice.Impact: Major operational change for landlords and property managers; units without these appliances may not meet habitability requirements. (Yang Law Offices)

📄 2. New Seller Disclosure: Tobacco/Nicotine Residue (AB 455)

Effective: January 1, 2026

• Sellers must disclose actual knowledge of third-hand smoke residue or a history of smoking/vaping inside a property (1–4 unit residential) on the Transfer Disclosure Statement (TDS).

• “Third-hand smoke” refers to residue that remains on surfaces long after smoking has occurred.Impact: Adds transparency for buyers and potential cancellation rights if disclosure is late; agents must update TDS practices accordingly. (stevelopezlaw.com)

🖼️ 3. Digital Listing Image Disclosures (AB 723)

Effective: January 1, 2026

• If property photos have been digitally altered beyond basic adjustments (e.g., AI edits), the listing must include a clear disclosure and a link/QR code to the unaltered original image.Impact: Ensures visual honesty in marketing and helps buyers trust listing accuracy; real estate professionals must understand what qualifies as “material editing.” (Yvonne Yang Homes)

📶 4. Tenant Opt-Out of Bulk Internet (AB 1414)

Effective: January 1, 2026

• For leases beginning, amended, or renewed after this date, tenants may opt out of a landlord’s bulk-billed internet service.

• Landlords cannot retaliate if a tenant chooses to opt out and the tenant may deduct costs if wrongfully charged.Impact: Protects tenant choice and billing transparency; landlords must update lease language and billing practices. (AAGLA)

💻 5. Electronic Security Deposit Returns (AB 414)

Effective: January 1, 2026

• If a tenant paid a security deposit electronically, it must be returned electronically by default unless another method is agreed upon.Impact: Streamlines and modernizes landlord-tenant financial transactions. (avantonerealestate.com)

🧑‍🚒 6. Post-Disaster Property Remediation (SB 610)

Effective: January 1, 2026

• Landlords must remediate disaster-related debris, smoke, mold, ash, or water damage within a reasonable timeframe after a declared disaster.Impact: Strengthens tenant protections and places clear cleanup obligations on property owners after wildfires or other catastrophes. (avantonerealestate.com)

🌆 7. Housing Development & Permit Reform (SB 79, AB 253)

Various Effective Dates in 2026

• SB 79: Encourages higher-density transit-oriented development with streamlined approvals and reduced discretionary reviews near major transit stops, potentially unlocking tens of thousands of units.

• AB 253: Allows homeowners/developers to hire private plan checkers if local review delays exceed 30 days.Impact: Could accelerate housing production and change how local jurisdictions process permits for residential construction and infill housing. (Wikipedia)

🧯 8. Wildfire Safety & Defensive Space (AB 1455)

Effective: 2026 / Regulatory phase

• Establishes a state “Zone 0” ember-resistant buffer (around five feet) for new structures in high fire risk areas, requiring removal of combustible materials close to buildings.Impact: Affects building and landscaping practices, especially in high-risk wildfire zones; compliance timelines vary. (AIDE)

⚖️ 9. HOA Fines & Dispute Rules (AB 130 / AB 5850-5855)

Effective: Some prior to 2026; related compliance continues

• Caps HOA fines at $100 per violation except for health/safety issues; requires documented findings for higher fines.Impact: Homeowners associations must adjust enforcement policies and disclosures. (stevelopezlaw.com)

🧠 Bonus Items to Monitor

These are developments trending in legal discussions and may influence residential markets or future compliance:

• Rent fee restrictions and landlord fee prohibitions — bills like AB 1248 have been proposed that could ban many common tenant fees starting 2026 (still evolving). (Mehigan Law)

• Tenant protections like rent payment reporting, foreclosure sale rights, and early lease termination for victims of crime — active legislation related to housing was advancing and may overlap or affect 2026 compliance. (Sundae)

Key Takeaways

✅ Rental Compliance: Must update lease templates and rental property standards (appliances, internet opt-out, security deposits).

✅ Sales Transparency: New seller disclosures and listing photo requirements protect buyers and reduce risk.

✅ Construction & Development: Permit and zoning reforms could impact investor and developer strategies.

✅ Safety & Resilience: Wildfire-related building standards and disaster remediation obligations are growing priorities.

I'm here to help you navigate some of these changes in the industry. I stay on top of these new changes so I could better serve my clients whether you are considering buying, selling or investing. Please reach out to me so I could be of service to you, Christine@christinemason.me

This is blog is not intended to be legal advice. Just a quick summary of changes. Please consult with an licensed attorney for all legal matters.