SB-722
Housing & Homelessness

Transfer of real property: single-family homes, townhomes, and condominiums.

Introduced
CA
2025-2026 Regular Session
0
0
Track

Key Takeaways

  • Prohibits business entities from purchasing newly built homes in California from 2026 to 2031.
  • Requires developers to sell new residential properties exclusively to individual buyers.
  • Limits individuals from transferring more than four properties to business entities they partially own.
  • Imposes $100,000 penalties per violation when properties are sold against these restrictions.
10% progression
Bill has been formally introduced and read for the first time in its house of origin (2/21/2025)
Probability of Passing
We're working on it! Check back later.

Summary

Senator Wahab's proposal to regulate California's residential property market would restrict business entities from purchasing newly constructed homes while mandating transparency in real estate transactions. The legislation creates a five-year window, from 2026 through 2031, during which developers must sell new single-family homes, townhomes, and condominiums exclusively to individual buyers rather than corporate entities.

The bill establishes specific parameters around property transfers and ownership structures. Natural persons would be limited to transferring no more than four residential properties to business entities where they maintain beneficial ownership - defined as either exercising substantial control or holding at least 25% equity stake. When properties are sold to business entities, those organizations must disclose all beneficial owners in transfer documents. The restrictions exclude nonprofit organizations and companies primarily engaged in housing construction.

Enforcement authority would rest with the Attorney General, district attorneys, county counsels, and city attorneys, who could pursue civil actions against violations. The legislation sets penalties at $100,000 per property sold in violation of its provisions, plus reasonable attorney fees and costs. This enforcement mechanism serves as the exclusive means for ensuring compliance with the new requirements.

Get Involved

Act Now!

This bill was recently introduced. Email the authors to let them know what you think about it.

Introduced By

Aisha Wahab
Aisha WahabD
California State Senator

Community Outlook

No votes yet
Positive
0%
Negative
0%

Key Dates

Next Step
Referred to the Senate Standing Committee on Judiciary
Next Step
Senate Committee
Referred to the Senate Standing Committee on Judiciary
Hearing scheduled for , 1021 O Street, Room 2100
Introduced. To Com. on RLS. for assignment. To print.
Senate Floor
Introduced. To Com. on RLS. for assignment. To print.
Introduced. To Com. on RLS. for assignment. To print.

Relevant Contacts

Profile
Anna CaballeroD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Roger NielloR
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Benjamin AllenD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Eloise ReyesD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Scott WienerD
Senator
Committee Member
Not Contacted
Not Contacted
0 of 13 row(s) selected.
Page 1 of 3
Select All Legislators
Profile
Anna CaballeroD
Senator
Committee Member
Profile
Roger NielloR
Senator
Committee Member
Profile
Benjamin AllenD
Senator
Committee Member
Profile
Eloise ReyesD
Senator
Committee Member
Profile
Scott WienerD
Senator
Committee Member
Profile
Henry SternD
Senator
Committee Member
Profile
Maria DurazoD
Senator
Committee Member
Profile
Tom UmbergD
Senator
Committee Member
Profile
John LairdD
Senator
Committee Member
Profile
Akilah Weber PiersonD
Senator
Committee Member
Profile
Angelique AshbyD
Senator
Committee Member
Profile
Aisha WahabD
Senator
Bill Author
Profile
Suzette ValladaresR
Senator
Committee Member

Key Takeaways

  • Prohibits business entities from purchasing newly built homes in California from 2026 to 2031.
  • Requires developers to sell new residential properties exclusively to individual buyers.
  • Limits individuals from transferring more than four properties to business entities they partially own.
  • Imposes $100,000 penalties per violation when properties are sold against these restrictions.

Get Involved

Act Now!

This bill was recently introduced. Email the authors to let them know what you think about it.

Introduced By

Aisha Wahab
Aisha WahabD
California State Senator

Summary

Senator Wahab's proposal to regulate California's residential property market would restrict business entities from purchasing newly constructed homes while mandating transparency in real estate transactions. The legislation creates a five-year window, from 2026 through 2031, during which developers must sell new single-family homes, townhomes, and condominiums exclusively to individual buyers rather than corporate entities.

The bill establishes specific parameters around property transfers and ownership structures. Natural persons would be limited to transferring no more than four residential properties to business entities where they maintain beneficial ownership - defined as either exercising substantial control or holding at least 25% equity stake. When properties are sold to business entities, those organizations must disclose all beneficial owners in transfer documents. The restrictions exclude nonprofit organizations and companies primarily engaged in housing construction.

Enforcement authority would rest with the Attorney General, district attorneys, county counsels, and city attorneys, who could pursue civil actions against violations. The legislation sets penalties at $100,000 per property sold in violation of its provisions, plus reasonable attorney fees and costs. This enforcement mechanism serves as the exclusive means for ensuring compliance with the new requirements.

10% progression
Bill has been formally introduced and read for the first time in its house of origin (2/21/2025)
Probability of Passing
We're working on it! Check back later.

Key Dates

Next Step
Referred to the Senate Standing Committee on Judiciary
Next Step
Senate Committee
Referred to the Senate Standing Committee on Judiciary
Hearing scheduled for , 1021 O Street, Room 2100
Introduced. To Com. on RLS. for assignment. To print.
Senate Floor
Introduced. To Com. on RLS. for assignment. To print.
Introduced. To Com. on RLS. for assignment. To print.

Community Outlook

No votes yet
Positive
0%
Negative
0%

Relevant Contacts

Profile
Anna CaballeroD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Roger NielloR
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Benjamin AllenD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Eloise ReyesD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Scott WienerD
Senator
Committee Member
Not Contacted
Not Contacted
0 of 13 row(s) selected.
Page 1 of 3
Select All Legislators
Profile
Anna CaballeroD
Senator
Committee Member
Profile
Roger NielloR
Senator
Committee Member
Profile
Benjamin AllenD
Senator
Committee Member
Profile
Eloise ReyesD
Senator
Committee Member
Profile
Scott WienerD
Senator
Committee Member
Profile
Henry SternD
Senator
Committee Member
Profile
Maria DurazoD
Senator
Committee Member
Profile
Tom UmbergD
Senator
Committee Member
Profile
John LairdD
Senator
Committee Member
Profile
Akilah Weber PiersonD
Senator
Committee Member
Profile
Angelique AshbyD
Senator
Committee Member
Profile
Aisha WahabD
Senator
Bill Author
Profile
Suzette ValladaresR
Senator
Committee Member