New 2026 California Real Estate Laws Every Home Seller Should Know

If you’re planning to sell your home in 2026, there are several new laws that could change how your property is marketed and sold. California’s latest real estate updates aim to increase transparency, consumer protection, and market fairness — and understanding them now can save you time, stress, and legal risk later.

Here are the most important updates for home sellers this year.

1. AB 723 – Digital Image Disclosure for Property Listings

Beginning January 1, 2026, any digitally altered or AI-edited photos used in property marketing must include a clear disclosure and a link or QR code to the unedited image.

Only standard adjustments like brightness or cropping are exempt — anything more substantial must be disclosed.

Why it matters: Buyers deserve transparency. This law protects both parties and builds credibility for your listing.

2. AB 455 – Thirdhand Smoke Disclosure

Home sellers must now disclose any known residue or history of smoking or vaping inside the home. This applies to both tobacco and electronic products.

Why it matters: Non-disclosure can lead to disputes after closing, especially with health-conscious buyers or families.

3. AB 851 – Wildfire Recovery Zone Protections

In Los Angeles and Ventura Counties, unsolicited purchase offers are prohibited in fire-affected ZIP codes through 2027.

Why it matters: The law helps prevent predatory offers in post-disaster areas and ensures fair treatment for homeowners recovering from wildfires.

4. FinCEN Reporting – All-Cash Purchases

Starting March 1, 2026, escrow companies must report all-cash purchases made by legal entities or trusts to the federal Financial Crimes Enforcement Network (FinCEN). Sellers must provide proper documentation for closing to proceed.

Why it matters: Expect more identity verification requirements and paperwork during escrow.

✅ Closing Thoughts for Sellers

These laws make one thing clear — California real estate is moving toward full transparency. As a seller, staying ahead of these changes will help your listing stand out and ensure a smooth, compliant sale.

🏡 If you’re thinking about selling your Bay Area home in 2026, I’ll help you navigate every new regulation with confidence. From photo compliance to disclosure updates, my team ensures your listing is market-ready, legal, and positioned for maximum exposure.

📞 Let’s talk strategy — reach out today to get your 2026 home-selling plan started.

Written by Yvonne Yang, Top Bay Area Realtor®.