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

  • Restricts sales of new homes built after 2026 to individual buyers rather than corporate entities.
  • Requires business entities buying homes to disclose all owners who control 25% or more of the company.
  • Imposes $100,000 penalties per violation when homes are sold contrary to these restrictions.
  • Limits individuals from transferring more than four homes to companies they partially own.

Summary

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.

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 has not been scheduled yet
Senate Judiciary Hearing
Senate Committee
Senate Judiciary Hearing
[First] hearing set for [04-30-2025]: Failed passage in Committee. Reconsideration granted
Senate Judiciary Hearing
Senate Committee
Senate Judiciary Hearing
Do pass, but first be re-referred to the Committee on [Appropriations]
Introduced
Senate Floor
Introduced
Introduced. To Com. on RLS. for assignment. To print.

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.
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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
Committee Member
Profile
Suzette ValladaresR
Senator
Committee Member

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Aisha Wahab
Aisha WahabD
California State Senator
10% progression
Bill has been formally introduced and read for the first time in its house of origin (2/21/2025)

Latest Voting History

April 29, 2025
PASS
Senate Committee
Senate Judiciary Hearing
AyesNoesNVRTotalResult
130013PASS

Key Takeaways

  • Restricts sales of new homes built after 2026 to individual buyers rather than corporate entities.
  • Requires business entities buying homes to disclose all owners who control 25% or more of the company.
  • Imposes $100,000 penalties per violation when homes are sold contrary to these restrictions.
  • Limits individuals from transferring more than four homes to companies they partially own.

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Aisha Wahab
Aisha WahabD
California State Senator

Summary

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.

10% progression
Bill has been formally introduced and read for the first time in its house of origin (2/21/2025)

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 has not been scheduled yet
Senate Judiciary Hearing
Senate Committee
Senate Judiciary Hearing
[First] hearing set for [04-30-2025]: Failed passage in Committee. Reconsideration granted
Senate Judiciary Hearing
Senate Committee
Senate Judiciary Hearing
Do pass, but first be re-referred to the Committee on [Appropriations]
Introduced
Senate Floor
Introduced
Introduced. To Com. on RLS. for assignment. To print.

Latest Voting History

April 29, 2025
PASS
Senate Committee
Senate Judiciary Hearing
AyesNoesNVRTotalResult
130013PASS

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
Committee Member
Profile
Suzette ValladaresR
Senator
Committee Member