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

Senator Wahab's proposal to regulate California's residential real estate market would restrict the sale of newly constructed homes exclusively to individual buyers starting in 2026. The legislation prohibits business entities from purchasing new single-family homes, townhomes, and condominiums while requiring disclosure of beneficial owners when properties are transferred to corporate entities.

The bill establishes limits on property transfers between individuals and business entities. Natural persons would be prohibited from transferring more than four residential properties to any business entity where they maintain beneficial ownership, defined as either exercising substantial control or holding at least 25 percent equity interest. When properties are sold to business entities, all beneficial owners must be disclosed in transfer documents.

Enforcement authority would rest with the Attorney General and local government attorneys, who could pursue civil penalties of $100,000 per violation plus legal costs. The bill includes exemptions for nonprofit organizations operating low-income housing programs and maintains existing regulations for property transfers not explicitly addressed by the new provisions. All new requirements would sunset on January 1, 2031, unless extended by future legislation.