2025-2026 California New Laws Summary

The summaries provided herein are designed solely as quick-reference highlights of selected legislation relevant to the title industry. They are not a substitute for the enacted, chaptered statutes. Readers should always consult the official, chaptered versions for complete details

California Laws Summary

2025-2026

Summary Guide The summaries provided herein are designed solely as quick-reference highlights of selected legislation relevant to the title, escrow, and real estate industry. They are not a substitute for the enacted, chaptered statutes. Readers should always consult the official, chaptered versions for complete details California Laws

TABLE OF CONTENTS

Assembly Bill 851 - Wildfire Unsolicited Real Property Offers.........1

Senate Bill 255 - County Recorder Notification Program..............................2

Senate Bill 625 - Reconstruction of Destroyed Structure...............................3

Assembly Bill 1050 - Unlawfully Restrictive CC&R’s..................................4

Assembly Bill 238 - Mortgage Forbearance Related to Wildfires........5

Assembly Bill 418 - Sale of Tax Defaulted Property.................................6

Senate Bill 410 - Exterior Elements Inspection.................................................7

Assembly Bill 565 - Representation of Trust Beneficiaries..................................8

All new law references in this guide are available in the 2025 CLTA Summary of Legislation. https://www.clta.org/uploads/1/5/2/2/152207072/2025_summary.pdf

CALIFORNIA ASSEMBLY BILL 851

Real Property Transactions Wildfire Unsolicited Offers

What is Assembly Bill 851

Effective immediately, California Assembly Bill 851 was enacted in response to devastating wildfires in Los Angeles and Ventura counties. The law aims to protect homeowners in disaster-affected areas from predatory real estate practices, specifically unsolicited offers to buy their property at below-market prices. It formalizes and extends emergency protections originally issued by the Governor, ensuring fair treatment for vulnerable homeowners during recovery.

A few highlights and key benefits for Assembly Bill 851 include:

Unsolicited offer to purchase - Means any offer to purchase a property made by text, email, call, mail, or other means of communication, unless the property is listed for sale by the owner or their agent on an MLS or public marketing platform. Or the owner placed a “for sale” sign on the property or advertised the property for sale in a print publication or a flyer posted in a public place. Unsolicited Offers Prohibited - Buyers cannot make unsolicited offers to purchase residential property in designated fire-affected ZIP codes until January 1, 2027. Mandatory Compliance Attestation - Buyer and seller must sign and record an attestation confirming the offer was not unsolicited before title transfer. Seller Cancellation Rights - Sellers can cancel contracts entered into due to unsolicited offers for up to 4 months after signing, with reimbursement of purchase price and improvements. Penalties for Violations - Civil penalties up to $25,000, misdemeanor charges, and possible license discipline for real estate professionals. Affected Areas - Includes areas impacted by the Eaton and Palisades fires in Los Angeles and Ventura Counties. (Zip Codes: 90049, 90263, 90265, 90272, 90290, 90402, 91001, 91024, 91103, 91104, 91106, 91107, 91301, 91302, or 91320)

Why it matters

AB 851 is designed to protect families during one of the most vulnerable times—recovering from a wildfire disaster. When homes are damaged or destroyed, owners often face immense financial and emotional stress, making them targets for predatory buyers offering quick, below-market deals. By restricting unsolicited offers and providing clear cancellation rights, this law ensures homeowners have the time and security to make informed decisions about their property. It’s about fairness, transparency, and giving communities the chance to rebuild without exploitation.

https://www.clta.org/uploads/1/5/2/2/152207072/2025_summary.pdf As shown on page 12 of the 2025 CLTA Summary of Legislation

Find more important Assembly Bill 851 details here: https://calmatters.digitaldemocracy.org/bills/ca_202520260sb79

CALIFORNIA SENATE BILL 255

County Recorder Notification Program

What is Senate Bill 255? Starting January 1, 2027, every county in California will be required to create a notification system to help protect property owners from fraud. Under this new law, when someone records a deed, quitclaim deed, mortgage, or deed of trust, the county must send a mailed notice to the people who signed the document within 30 days. This notice will go to the address where property tax bills are typically sent. Counties will also have the option to offer electronic notifications, like email alerts, in addition to the mailed notice—but they’re not required to.

The bill would create an exemption from these requirements for the recordation of certain documents where a state or local government is the grantee.

In addition to any other recording fee, the board of supervisors may authorize the county recorder to collect a fee from the party filing a deed, quitclaim deed, mortgage, or deed of trust for the cost of implementing the program pursuant to this section. The fee shall not exceed the reasonable costs of services of the county to comply with SB 255. The county recorder may require that any deed, quitclaim deed, mortgage, or deed of trust include the assessor’s parcel number (APN) for the property listed in the document on the first page. If the property includes more than one parcel, all parcel numbers must be included. The recorder is allowed to rely on the parcel numbers provided when processing the document.

Los Angeles County will be exempt because it already has a statutory authorization for a recorder notification program.

Why it matters This law is designed to help prevent real estate fraud, like when scammers try to illegally transfer ownership of your property without your knowledge. It adds a layer of protection by making sure property owners are alerted to any new recordings, helping catch fraudulent activity early—like forged signatures or unauthorized transfers—before it causes serious harm.

https://www.clta.org/uploads/1/5/2/2/152207072/2025_summary.pdf As shown on page 14 of the 2025 CLTA Summary of Legislation

Find more important Senate Bill 255 details here: https://legiscan.com/CA/text/SB255/id/3186742

CALIFORNIA SENATE BILL 625

Reconstruction of Destroyed Structure

What is Senate Bill 625? California Senate Bill 625 is a powerful advancement for California homeowners, homeowners’ associations (HOAs), and disaster recovery efforts SB 625 eliminates HOA and CC&R restrictions that block rebuilding following a disaster—declared by federal, state, or local authorities—ensuring homeowners can reconstruct their homes without bureaucratic roadblocks. Any covenants or rules that unreasonably prohibit rebuilding are now void and unenforceable. Homeowners can recover literally and legally, backed by the ability to recover attorney’s fees if forced to defend these rights. This law introduces a ministerial approvals process, eliminating discretionary reviews and fast-tracking rebuilds within established timelines. Homeowners can rebuild up to 110% of their home's original size, follow “objective design standards,” and gain automatic approvals within 30 business days—rapidly restoring homes and confidence after devastation. Originally part of the Governor’s Golden State Commitment, SB 625 addresses catastrophic wildfires—such as the 2025 Palisades and Eaton fires—creating a permanent statutory framework that supports resilient recovery efforts. It strengthens California’s capacity to rebuild housing, combat displacement, and curb homelessness through clear, action-ready guidelines This bill mandates responsive HOA behavior. Associations must approve or deny complete applications within 30 business days, offer clear feedback for noncompliance, and provide appeal rights—ensuring transparent, accountability-driven architectural reviews. Why it matters SB 625 doesn’t just restore homes—it rebuilds hope and community strength, guaranteeing Californians the expedited support they deserve when disaster strikes. It's a pivotal step toward a faster, fairer, and more resilient future for homeowners and neighborhoods statewide.

https://www.clta.org/uploads/1/5/2/2/152207072/2025_summary.pdf As shown on page 6-7 of the 2025 CLTA Summary of Legislation

Find more important Senate Bill 79 details here: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260SB625

CALIFORNIA ASSEMBLY BILL 1050

Unlawfully Restrictive CC&R’s

What is Assembly Bill 1050? California Assembly Bill 1050 is a transformative step forward in addressing California’s housing crisis by removing outdated legal barriers and unlocking new development opportunities: AB1050 empowers developers and property owners to convert underused commercial real estate into vibrant mixed-use communities. The law allows them to challenge and modify restrictive covenants and reciprocal easement agreements that limit the size, density, or permitted residential uses—ensuring compliance with state and local zoning laws—with a streamlined legal pathway to approval. This bill is a catalyst for revitalization, breathing new life into vacant shopping centers, old malls, and unused office complexes. It builds on the success of earlier legislation aimed at affordable housing and expands it—facilitating redevelopment of commercial properties into dynamic, inclusive communities where people can live, work, and play. Recognizing the discriminatory legacy of covenant restrictions, AB1050 allows communities to move beyond outdated density limits. It supports California’s commitment to equitable access to housing and ensures that development projects align with modern needs—creating neighborhoods that reflect diverse incomes, needs, and lifestyles. Property owners can submit covenant modification requests to county counsel and have them recorded with the county recorder. The process enhances transparency and accountability, while respecting existing general plans, zoning rules, and state housing mandates—supporting a responsible, compliant development process. Why it matters AB1050 makes it easier to turn empty commercial spaces into housing. By removing old rules that block development, the law helps create new homes faster and supports building communities that fit today’s needs. It’s a big step toward solving California’s housing shortage and making neighborhoods more livable.

https://www.clta.org/uploads/1/5/2/2/152207072/2025_summary.pdf As shown on page 6 of the 2025 CLTA Summary of Legislation

Find more important Assembly Bill 1050 details here: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260SB625

CALIFORNIA ASSEMBLY BILL 238

Mortgage Forbearance Related to Wildfires

What is Assembly Bill 238? California Assembly Bill 238 was enacted as an urgency statute in September 2025, introduces important mortgage relief measures for homeowners financially affected by California wildfires. AB 238 applies to homeowners experiencing financial hardship directly caused by a wildfire disaster that triggers a state of emergency (such as those declared on January7–8,2025, covering the Eaton Wildfire, Palisades Fire, and Straight-line Winds). Eligible loans include residential mortgages secured by properties of one to four units, and both federally (e.g., FHA, VA, Fannie Mae, Freddie Mac) and non ‑ federally ‑ backed loans are covered. Borrowers may request forbearance by simply attesting—under penalty of perjury—that they are facing financial hardship due to the wildfire. No additional documentation is required. Servicers must grant an initial 90-day forbearance (rather than 180, as earlier drafts indicated), renewable in 90 ‑ day increments, up to a total of 12 months. Any pre-existing wildfire-related forbearance counts toward that 12-month limit. Once a borrower submits their attestation, servicers are required to approve or deny the request within 10 business days. If denied due to investor restrictions, servicers must provide a specific denial reason and offer a 21-day cure period for borrowers to address defects.

Protections During Forbearance No late fees or default interest may be charged during the relief period.

Servicers must report the loan to credit bureaus as either current or reflecting prior delinquency in compliance with the Fair Credit Reporting Act, but must not flag the account as being in forbearance. Foreclosure proceedings—including initiation of nonjudicial or judicial foreclosure, eviction, or foreclosure sale—are prohibited during the forbearance term. Why it matters AB 238 provides a streamlined, borrow-friendly pathway for wildfire-impacted homeowners to pause mortgage payments for up to a year, debt-free, penalty-free, and foreclosure-free, while maintaining credit standing and receiving timely, clear decisions from mortgage servicers.

https://www.clta.org/uploads/1/5/2/2/152207072/2025_summary.pdf As shown on page 9-10 of the 2025 CLTA Summary of Legislation

Find more important Assembly Bill 238 details here: https://legiscan.com/CA/text/AB238/id/3176534

CALIFORNIA ASSEMBLY BILL 418

Sale of Tax Defaulted Property

What is Assembly Bill 418? California Assembly Bill AB418 strengthens transparency and fairness in the sale of tax-defaulted properties. Counties must now hold a public hearing before approving a negotiated sale and provide at least 45 days’ notice to the property owner and all interested parties. Notices include property details, proposed sale price, and hearing information. The board can only approve the sale if the price meets or exceeds the property’s estimated auction value or if no excess proceeds would result from a public auction. Buyers must cover all hearing-related costs. Parties have 45 days after the decision to seek judicial review. This law ensures due process, protects property rights, and promotes accountability in tax-defaulted property sales. Key components of California Assembly Bill 418: Sale of Tax-Defaulted Property Public Hearing Required: Counties must hold a hearing before approving a negotiated sale of tax- defaulted property. Advance Notice: At least 45 days’ notice must be sent to the property owner and all interested parties. Notice Details: Includes property description, proposed sale price, and hearing information. Fair Pricing: Sale price must meet or exceed estimated auction value or result in no excess proceeds. Costs Covered by Buyer: All hearing-related expenses are paid by the purchasing entity. Judicial Review: Parties have 45 days after the decision to challenge it in court. Goal: Ensures transparency, protects property rights, and promotes accountability in tax-defaulted property sales. Why it matters Assembly Bill 418 is a positive step toward fairness and transparency in California’s property tax system. Overall, AB418 strengthens trust in local government and creates a more equitable system for handling tax-defaulted property sales.

https://www.clta.org/uploads/1/5/2/2/152207072/2025_summary.pdf As shown on page 10 of the 2025 CLTA Summary of Legislation

Find more important Assembly Bill 418 details here: https://legiscan.com/CA/text/AB418/id/3103894

CALIFORNIA SENATE BILL 410

Exterior Elements Inspection

What is Senate Bill 410? California Senate Bill 410 strengthens safety requirements for balconies, decks, stairways, and other exterior elevated elements (EEEs) in common interest developments. These elements, which are six feet or more above ground and designed for occupant use, must undergo regular inspections to prevent structural failures. The law applies to buildings with three or more attached multifamily units. Homeowners’ associations (HOAs) are responsible for arranging inspections, and when a unit is sold, the seller must provide the most recent inspection report to the buyer. The first inspection must be completed by January 1, 2026, and repeated every six years. Inspectors must examine a statistically significant sample—at least 15% of each type of EEE—and provide a detailed written report within 45 days. The report includes the number of units inspected, the condition of the elements, projected performance, and any recommended repairs. If an urgent safety issue is found, the inspector must notify the owner and local enforcement within 15 days. SB 410 also requires transparency during real estate transactions. Sellers must disclose the latest inspection report, and HOAs may charge a separate fee for providing these documents. These measures ensure that buyers are informed and that communities maintain safe structures. Why it matters This legislation is a proactive step toward preventing tragedies caused by structural failures. By requiring regular inspections and clear disclosure, SB 410 protects residents, promotes accountability, and ensures that property owners address maintenance issues before they become dangerous. It creates safer living environments and builds trust in real estate transactions—benefiting homeowners, buyers, and communities alike.

https://www.clta.org/uploads/1/5/2/2/152207072/2025_summary.pdf As shown on page 11-12 of the 2025 CLTA Summary of Legislation

Find more important Senate Bill 410 details here: https://legiscan.com/CA/text/SB410/id/3272856

CALIFORNIA ASSEMBLY BILL 565

Representation of Trust Beneficiaries

What is Assembly Bill 565? California Assembly Bill 565 (AB565), enacted in July 2025, updates the Probate Code to modernize how trust beneficiaries are represented and notified. The bill clarifies that notice delivered to an authorized representative satisfies legal requirements, provided the beneficiary has given written consent. It also ensures ethical safeguards by prohibiting representatives with conflicts of interest and protecting trustees who act in good faith. AB565 defines eligible representative relationships, such as parents for minors and conservators for conservatees, creating a clear framework for trust administration. Key Components of California Assembly Bill 565 Modernizes beneficiary representation by allowing authorized representatives to receive legal notices on behalf of beneficiaries. Requires written consent from beneficiaries before representation becomes valid, ensuring transparency and control. Implements ethical safeguards by prohibiting representatives with conflicts of interest and protecting trustees acting in good faith. Clarifies eligible representative roles, such as parents for minors, conservators for conservatees, and current interest holders for future beneficiaries. Streamlines trust administration while preserving beneficiary rights, reducing complexity and liability for fiduciaries. Why it matters AB565 streamlines trust administration while preserving transparency and beneficiary rights. By requiring written consent and limiting conflicts of interest, it strengthens protections for beneficiaries and reduces liability for trustees. This law brings clarity to a previously complex process, ensuring that trust management is efficient, ethical, and legally sound—ultimately fostering confidence in California’s estate planning system.

https://www.clta.org/uploads/1/5/2/2/152207072/2025_summary.pdf As shown on page 15 of the 2025 CLTA Summary of Legislation

Find more important Assembly Bill 565 details here: https://legiscan.com/CA/text/AB565/2025

The 2025 CLTA Summary of Legislation referenced in this guide, is an annual publication produced by the California Land Title Association (www.clta.org) to give title and real estate professionals a comprehensive, industry ‑ focused breakdown of new California laws and court decisions affecting real estate, escrow, and title insurance practices. The 2025 edition provides high ‑ level summaries of newly enacted legislation, including live links to full chaptered bill text and legislative histories, along with concise digests of recently issued court opinions that impact title operations. It also includes multiple indexes—by bill number, chapter number, topic, and case name—making it an essential quick ‑ reference tool for navigating statutory and case law changes relevant to the title and real estate industry. The booklet is used to stay informed about changes taking effect on January 1, 2026, unless otherwise specified. Although detailed, the CLTA notes that the summary is not a substitute for the official statutes; rather, it serves as a practical, curated guide that directs professionals to authoritative sources and supports informed decision ‑ making within the title, escrow and real estate sector.

All new law references in this guide are available in the 2025 CLTA Summary of Legislation. https://www.clta.org/uploads/1/5/2/2/152207072/2025_summary.pdf

Information provided in this guide is for informational purposes only and is not or may not be construed as legal advice. Please consult with an attorney to embark upon any specific course of action. Chicago Title makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions. ©2026 Chicago Title Company.

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