Hey, fellow Napa Valley real estate agents and beyond! As we gear up for 2025, I want to make sure you're ahead of the curve on some major changes coming our way. The California Association of REALTORS® just released their 2025 legislative updates, and several of these new laws will significantly impact how we do business.
I've combed through the entire list of 20+ new regulations and highlighted the ones that could directly affect our day-to-day operations here in Wine Country. Whether you're working with luxury vineyard estates or downtown Napa condos, these changes will reshape certain aspects of our transaction process. Let's break down what you need to know to stay compliant and keep your business running smoothly in 2025
FIND IT FAST
- Buyer Representation Agreements
- Balcony Inspections
- Contractor License Exemptions
- Mortgages & Foreclosures
- Pools & Spas
- Additional Resources
AB 2992 | Buyer Representation Agreements
Requires a buyer representation agreement to be executed between a buyer’s agent and a buyer as soon as practicable, but no later than the execution of the buyer’s offer to purchase real property. This law applies to nearly all types of property but excludes leases and rental agreements.
Impact: All buyer's agents must now have signed representation agreements before submitting offers.
Action Steps:
- Update your buyer consultation process to include agreement signing early in the relationship
- Keep signed agreements readily accessible in your transaction management system
- Create a standard process to explain the agreement's importance during initial client meetings
Most know about this law and I’ve discussed it in depth on my social media and my blog. To get a refresh on this check out the additional resources below.
AB 2579 | Inspections: Exterior Elevated Elements (Balcony Inspections)
The deadline for inspections extended until 2026 but not for condominium projects:
Extends the deadline for inspections of wooden balconies and other Elevated Elements for buildings with 3 or more multifamily dwelling units from January 1, 2025, to January 1, 2026. However, there is no extension of the deadline for wooden balcony inspections for condominium projects which remains January 1, 2025.
Impact: Different deadlines for condos (2025) vs. multi-family properties (2026) could affect closing timelines.
Action Steps:
- Create a checklist distinguishing condo vs. multi-family inspection requirements
- Build inspection deadlines into your transaction timelines
- Develop a list of qualified inspectors for these specific inspections
AB-2622 | Contractors: Exemptions - Work & advertisements
Contractor License Exemptions: $500 limit for unlicensed contractor work raised to $1000:
The contractor licensing law does not apply when the aggregate contract price for labor, materials, and all other items on a work or operation on one project or undertaking is less than $1000 and the construction does not require a building permit or employing another person to perform, or to assist in performing the work or operation.
Impact: More flexibility with minor repairs under $1,000 during transactions.
Action Steps:
- Update your vendor lists to include both licensed and unlicensed contractors
- Create a clear scope-of-work template to ensure projects stay under $1,000
- Document all work arrangements in writing, even for small jobs
AB-2493 | Tenancy: Application Screening Fee
Landlord/Tenant: Application screening fee and application process:
Prohibits the practice of charging an application fee to a prospective tenant unless the landlord or agent knows or should have known that a unit is available or will be available within a reasonable period. Authorizes a landlord to charge an application fee under limited circumstances.
Impact: Changes in how and when you can collect application fees for rental properties.
Action Steps:
- Revise your rental application process to verify unit availability before accepting fees
- Create a documentation system for unit availability
- Update your rental marketing materials to reflect new application fee policies
AB-2424 | Mortgages: Foreclosure (Listing Agreements & Foreclosure)
Delivery of the listing agreement extends foreclosure sale by 45 days:
When foreclosing on residential 1 to 4 property, this law requires an additional 45 days beyond the scheduled date of sale if the trustee receives a listing agreement from the trustor at least 5 business days before the scheduled date of sale. There is an additional postponement right based on obtaining an executed purchase agreement.
Impact: New opportunity to extend foreclosure timelines with listing agreements.
Action Steps:
- Mark your calendars for 5 business days before the scheduled foreclosure sales
- Create a system to track foreclosure listing agreements and deadlines
- Develop relationships with foreclosure trustees in your area
SB-552 | Public Safety: Pools & Spas
Starting January 1, 2025, requires home inspectors to verify and document the condition, operation, and proper labeling of drowning prevention features in single-family homes. The law maintains existing requirements for safety features—one feature for pools/spas built before 2007 and two features for those after 2007—while introducing new specifications for mesh fencing, safety covers, and alarm systems. These enhanced requirements aim to improve pool safety through proper documentation and maintenance verification, without requiring invasive testing during home inspections.
Impact: More detailed pool safety requirements in inspection reports could affect negotiations.
Action Steps:
- Create a pool/spa safety feature checklist
- Build relationships with inspectors familiar with new requirements
- Prepare client education materials about required safety features
- Update your property inspection timeline to account for these additional verifications
ADDITIONAL RESOURCES
Navigating the New Realities of Buyer Representation Agreements - August 2024
5 Reasons to Work With a Buyer’s Agent
Navigating California's Wine Country Real Estate: Reverse Mortgages and Market Shifts
