Several important new rules for California home sellers take effect in 2026. Here are three rules that may have the greatest effect on marketing strategy and disclosure compliance. These rules impact sellers and landlords, but here we'll focus just on home sellers.
Photo Editing
The first new rule governs altered photographs used to market any type of property for sale - residential or commercial. Editing photographs has been common practice and agents are usually good about disclosing photo edits that make material changes to a scene. Common alteration edits include sky replacement, grass replacement, artificial twilight, clutter removal, and virtual staging. While those edits are still allowed, complying with the new disclosure rule requires that the original, un-altered photo also be made available by publishing it next to the altered photograph or by providing a link to where the original photo may be seen. The effects on marketing strategy may be subtle, but sellers will need to weigh the marketing impact. For example, sellers may decide that the cost of physical staging is worth the marketing advantage over publishing two photos with and without virtual staging. For more on the impact of new law AB 723 on real estate photography, check out this post: Important New Real Estate Photography Rule In California.
Smoking Disclosure
A seller's requirement to disclose toxic substances present on a property is nothing new. We can now add third-hand smoke to the list of substances that could impact sale of a property. Per new law AB 455, California home sellers must now disclose if anyone now or in the past smoked, vaped, or used a similar smoking device or product in the home. This includes smoke of any type - tobacco, marijuana, etc. The concern is that smoke residue can penetrate and remain in walls, air ducts or other surfaces and adversely effect the health of future occupants.
If you are working with a REALTOR® who uses Califormia Association of REALTORS® forms, smoke and substance disclosure is usually made in Section 18 of CAR Form SPQ (Seller's Property Questionnaire). There are exemptions for certain types of sales, consult with your broker or attorney to determine if your sale qualifies.
HOA Fine Limits
Finally, a win for HOA members and California home sellers! California's new law AB 130 caps fines assessed by homeowner associations for CC&R violations at $100 per violation. Additionally, HOA's may no longer add interest or late fees to fines. The cap does not apply to violations effecting health and safety.
Home sellers that are part of an HOA should review their CC&R's to make sure that all provisions of AB 130 have been incorporated into their HOA's schedule of fines and fine collection procedures. Some buyers avoid purchasing a home within an HOA due to the risk of excessive fines for minor infractions. AB 130 should make homes within HOA's more competitive in the market.
Regardless of economic and other legislative influences on the California real estate market, 2026 looks to be a good year to buy or sell.
Disclaimer: This article does not provide legal advice. If you require additional information about the legal impact of any of the laws referenced here, seek advice from a qualified attorney.