2026 California Real Estate Laws: What You Should Know and Why It Matters

As we move into 2026, California’s legislative landscape continues to evolve in ways that meaningfully shape real estate markets, housing policy, and property ownership. From updated rental requirements to transactional transparency mandates, these changes reflect persistent attempts to balance consumer protection, housing affordability, and market integrity.

Here’s a strategic look at the most consequential new laws and what they mean for real estate professionals, investors, landlords, and homeowners in California.

One of the most notable changes this year is Assembly Bill 628 (AB 628), which raises California’s habitability standard by requiring landlords to provide a working stove and refrigerator in rental units for leases entered into or renewed after January 1, 2026.

2026 also brings important changes on the transactional side for both buyers and sellers:

FinCEN Reporting

Starting March 1, 2026, escrow and title companies must report all-cash purchases by legal entities or trusts to the Financial Crimes Enforcement Network (FinCEN). This new reporting requirement strengthens anti-money-laundering measures and increases scrutiny on large cash transactions.

Disclosure Requirements

Sellers now must disclose if a property has a history of smoking or “third-hand smoke” residue, an example of how California continues to expand environmental and health-related disclosures in real estate transactions.

In an era of AI and digital marketing, California has taken steps to ensure transparency in property advertising. A new law requires that digitally altered listing photos disclose edits prominently so that buyers can better assess what they’re purchasing.

Across these laws, one theme stands out: California is prioritizing clear standards, accountability, and consumer protection in real estate. Whether through habitability definitions, enhanced disclosures, or marketing compliance, the regulatory environment is shifting towards greater transparency.

These new laws aren’t just regulatory hurdles, they’re signals about the direction of California’s housing and real estate market. Staying ahead of them isn’t just about compliance, it’s about positioning our clients for long-term success.