| Last Version Text |
<?xml version="1.0" ?>
<ns0:MeasureDoc xmlns:html="http://www.w3.org/1999/xhtml" xmlns:ns0="http://lc.ca.gov/legalservices/schemas/caml.1#" xmlns:ns3="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.0" xsi:schemaLocation="http://lc.ca.gov/legalservices/schemas/caml.1# xca.1.xsd">
<ns0:Description>
<ns0:Id>20250SB__072297AMD</ns0:Id>
<ns0:VersionNum>97</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-21</ns0:ActionDate>
</ns0:Action>
<ns0:Action>
<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-03-26</ns0:ActionDate>
</ns0:Action>
<ns0:Action>
<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-04-21</ns0:ActionDate>
</ns0:Action>
</ns0:History>
<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>SB</ns0:MeasureType>
<ns0:MeasureNum>722</ns0:MeasureNum>
<ns0:MeasureState>AMD</ns0:MeasureState>
</ns0:LegislativeInfo>
<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Wahab</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Wahab</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title>An act to add and repeal Title 8 (commencing with Section 945.20) of Part 2 of Division 2 of the Civil Code, relating to real property.</ns0:Title>
<ns0:RelatingClause>real property</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Transfer of real property: single-family homes, townhomes, and condominiums.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>Existing law regulates the transfer of property. Existing law generally permits any kind of property to be transferred, subject to specified exceptions.</html:p>
<html:p>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.</html:p>
<html:p>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.</html:p>
<html:p>This bill would repeal these provisions as of January 1, 2031.</html:p>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>NO</ns0:LocalProgram>
</ns0:DigestKey>
<ns0:MeasureIndicators>
<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
</ns0:ImmediateEffectFlags>
</ns0:MeasureIndicators>
</ns0:Description>
<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_640219DB-FCEA-4D24-8943-87C30BA35F47">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:href="urn:caml:codes:CIV:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'8.'%5D)" ns3:label="fractionType: LAW_SPREAD||commencingWith: 945.20" ns3:type="locator">
Title 8 (commencing with Section 945.20) is added to Part 2 of Division 2 of the
<ns0:DocName>Civil Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawHeading id="id_57C700C7-B197-4581-B050-764776FDB204" type="TITLE">
<ns0:Num>8.</ns0:Num>
<ns0:LawHeadingVersion id="id_440AD88A-F4B2-40A6-99E0-9C22D091CCE4">
<ns0:LawHeadingText>Sale of Single-Family Homes, Townhomes, and Condominiums</ns0:LawHeadingText>
</ns0:LawHeadingVersion>
<ns0:LawSection id="id_33242BC1-7A82-4AF2-BF76-10DA02D74B62">
<ns0:Num>945.20.</ns0:Num>
<ns0:LawSectionVersion id="id_53269321-CBCF-464D-BB60-2CA470ED1D6F">
<ns0:Content>
<html:p>For purposes of this title, the following definitions apply:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
“Beneficial owner” means a natural person for whom, directly or indirectly and through any contract arrangement, understanding, relationship, or otherwise, either of the following applies with respect to a business entity:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The person exercises substantial control over the business entity. For the purposes of this paragraph, “substantial control” has the same meaning as set forth in Section 1010.380 of Title 31 of the Code of Federal Regulations, as published in the Federal Register, Volume 87, Number 189, on September 30, 2022.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The person owns 25 percent or more of the equity interest of the business entity.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
“Business entity” means any association, company, firm, partnership, corporation, limited liability company, limited liability partnership, real estate investment trust, or other legal entity, and that entity’s successors, assignees, or affiliates, but does not include either of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A nonprofit corporation or other nonprofit legal entity.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A person or entity primarily engaged in the construction of new housing.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
“Interest” means any estate, remainder, or reversion enumerated in Chapter 1
(commencing with Section 761) of Title 2 of Part 2, or portion of the estate, remainder, or reversion, or an option pursuant to which one party has a right to cause legal or equitable title to housing to be transferred.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_9065558C-60F5-45C9-99A9-8D887CD9B3EA">
<ns0:Num>945.21.</ns0:Num>
<ns0:LawSectionVersion id="id_AEAB06B0-5A1A-4F49-AF69-20565FE59DA1">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
A developer shall 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.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A business
entity shall not purchase a newly constructed single-family home, townhome, or condominium that is issued a certificate of occupancy on or after January 1, 2026.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
If a natural person or nonprofit corporation sells or otherwise transfers a single-family home, townhome, or condominium to a business entity, the business entity shall disclose the names of all the beneficial owners of the business entity in the real property transfer documents.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
A natural person shall not transfer more than four single-family homes, townhomes, or condominiums to a business entity of which the natural person is a beneficial owner.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
This section does not prohibit a homebuilder from transferring or selling a newly constructed single-family home, townhome, or condominium to a nonprofit corporation organized pursuant to Section 501(c)(3) of the Internal Revenue Code that received a welfare exemption under Section 214.15 of the Revenue and Taxation Code for properties to be sold to low-income families who participate in a below-market interest rate loan program.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_7038F92F-DA2D-4B6F-A319-C95B87C61EAA">
<ns0:Num>945.22.</ns0:Num>
<ns0:LawSectionVersion id="id_69B484C0-7DE4-4743-AF97-1244B37C2ABF">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The Attorney General or a district attorney, county counsel, or city attorney, in the name of the people of the State of California, may bring civil action to enforce this title. If the Attorney General or a district attorney, county counsel, or city attorney prevails in an action brought pursuant to this section, the court may order both of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A civil penalty of one hundred thousand dollars ($100,000) for each single-family home, townhome, or condominium sold in violation
of this section.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Reasonable attorney’s fees and costs.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
This section is the exclusive means for enforcing this title.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_A6D7840E-04BF-4F33-BAB2-58EDD9ABF7AA">
<ns0:Num>945.23.</ns0:Num>
<ns0:LawSectionVersion id="id_F48F8FA8-A4B2-4B13-8D2E-5DA8F57E5EBE">
<ns0:Content>
<html:p>This title shall remain in effect only until January 1, 2031, and as of that date is repealed.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:LawHeading>
</ns0:Fragment>
</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>
|
| Last Version Text Digest |
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. |