Existing law regulates the transfer of property. Existing law generally permits any kind of property to be transferred, subject to specified exceptions.
This bill would require a developer to only sell a newly constructed single-family home, townhome, or condominium that is issued a certificate of occupancy on or after January 1, 2026, to a natural person, and would prohibit a business entity, as defined, from purchasing those properties during that time period. The bill would also prohibit a natural person from transferring more than 4 single-family homes, townhomes, or condominiums to a business entity of which the natural person is a beneficial owner, as defined. If a natural person or nonprofit corporation sells or otherwise transfers a single-family home, townhome, or condominium to a business entity, the bill would require the business entity to disclose the names of all the beneficial owners of the business entity in the real property transfer documents.
This bill would authorize the Attorney General or a district attorney, county counsel, or city attorney to bring a civil action to enforce these provisions. If the Attorney General or a district attorney, county counsel, or city attorney prevails in the civil action, the bill would authorize a court to order the payment of a civil penalty, as specified, and reasonable attorney's fees and costs.
This bill would repeal these provisions as of January 1, 2031.

Statutes affected:
SB 722: 50675 HSC
02/21/25 - Introduced: 50675 HSC
03/26/25 - Amended Senate: 50675 HSC