Key Real Estate Takeaways from Sacramento: What Buyers and Sellers Need to Know

I just returned from Legislative Day in Sacramento, where real estate professionals from across California gathered to discuss the future of the housing market. From proposed legislation to critical updates affecting homeowners, buyers, sellers, and landlords—this trip was packed with insights every real estate consumer should know.

Whether you're thinking about buying a home in California, selling your property, or just trying to stay informed about the latest housing laws, here’s a breakdown of what’s happening behind the scenes at the Capitol—and how it may impact you.

Advocacy That Impacts Homeowners and Future Buyers

A strong message emerged during our meetings with lawmakers: real estate professionals and everyday homeowners must advocate for property ownership. Legislators need to hear real stories about the challenges of buying a home, keeping up with rent, or navigating the complex process of selling.

Several important housing bills are under consideration, many designed to:

• Expand down payment assistance programs

• Increase funding for transit-oriented housing

• Restrict large institutional investors from dominating the residential market

Proposed measures like limiting hedge funds and REITs from buying new construction homes, or capping ownership at 1,000 homes, aim to protect opportunities for individual buyers.

 Rent Control & Housing Supply: The Costa-Hawkins Debate

The future of the Costa-Hawkins Rental Housing Act remains a hot topic. Lawmakers and stakeholders are weighing the risks of expanding rent control, which some argue could discourage new housing development and reduce availability for renters.

If you’re a landlord or future investor, these debates may directly impact your property's profitability and long-term value.

🔥 Insurance, Fire Zones & Disclosure Rules for Sellers

The California home insurance market is in flux. Premiums are rising, coverage is harder to get, and wildfire risk continues to complicate real estate deals. If you're planning to sell a home in a high fire zone, new fire mapping rules may affect your disclosure requirements and give buyers a potential right to cancel the deal.

Key seller alerts:

• Many areas have been newly classified into very high fire hazard severity zones

• Defensible space inspections are still not required by law, despite ongoing confusion

• Proper disclosure is essential and can protect your transaction from last-minute cancellations

📄 Compliance & Forms: What Buyers and Sellers Must Know

New form updates and compliance rules are being rolled out statewide:

• Buyer Representation Agreements are now required before writing an offer. This formalizes your relationship with your agent and outlines how they’ll be compensated.

• Updates to purchase agreement language clarify limits on buyer credits and when exceeding them could void parts of the contract.

• A new Team Member Exit Agreement form helps brokerages manage agent transitions.

• Security deposit laws now require before/after photos for deductions over $125—starting July 1st.

For sellers and landlords, staying compliant with updated laws not only protects your investment—it also builds trust with buyers and tenants.

Regulatory Trends: DRE, HOA Fees, and Office Requirements

California’s Department of Real Estate (DRE) is tightening enforcement on:

• Trust fund handling

• Recordkeeping and audits

• Consumer complaints and fraud prevention

If you're working with a real estate professional, make sure they’re in good standing and well-versed in the latest DRE guidance.

Also, be aware of:

• New safety inspection rules for apartment and condo balconies

• Reasonable limits on HOA transfer fees—excessive fees can be contested

• Workplace violence prevention plans now required for public-access offices (including brokerages) by July 1st

 Affordability, Inclusion & Local Impact

The Housing Affordability Fund is offering up to $450,000 in grants, supporting programs like first-time homebuyer assistance. There’s also renewed focus on diversity and inclusion in the real estate profession—something that directly affects how communities are served.

Final Thoughts for Buyers and Sellers

The trip to Sacramento made one thing clear: California real estate is in a constant state of change. Whether you're buying a home, preparing to sell, or navigating the rental market, staying informed about new legislation, insurance shifts, and disclosure rules is more important than ever.

Want a closer look at the legislation REALTORS® successfully opposed—and what we’re actively supporting to protect property rights and promote homeownership? Check it out here.