Real Estate Laws in California – 2020 update

Changes in the law regarding real estate practices have been happening for years. Each year we see changes in the practice, paperwork, and titles in real estate. This is exactly what happened to the real estate laws in California in 2020.

Why does this impact you? Well, if you are looking to buy a house in California, renting in California, or you work as a real estate agent, it is going to benefit you to understand these new laws.

Keep reading to learn more about some of these law changes and what they mean for you!

real estate laws in california - 2020 update

Changes in Real Estate Laws in California for 2020

The California legislature has passed quite a few new laws regarding the real estate requirements in the state.

These laws cover quite a few different areas, from arbitration, to work status, to even display rights. We have gone in-depth with a couple of these law changes, so keep reading!

Home Inspectors

As of 2020, home inspectors are no longer allowed to give an opinion on what they feel the value of the home is.

This is the job of an appraiser, so the inspector must not make it their job. This rule applies both ways, though. An appraiser must not inspect the home further than is required to do their job.

An appraiser must only inspect the home in a way that can allow them to set a value of what the home is worth.

Religious Items in Front Entrances

In 2020, real estate laws in California make it illegal for property owners to ban religious items from front entrances.

By this, we mean a landlord for a rental home cannot ban their tenants from having religious symbols on display outside the home. The exception to this rule is if the symbol is dangerous or pushing a violent message.

Also, if the symbol has obscene language or graphics, it can be banned from being displayed out front.

Status of Real Estate Agents as Contractors

As of 2020, it’s been re-decided that real estate agents can be considered independent contractors.

The status of an independent contractor can be reached by a real estate agent if

  1. A valid real estate license is held
  2. A written contract is established stating that the realtor will not be treated as an employee
  3. The amount of money a realtor is bringing in is based on sales rather than the number of hours worked

This change allows real estate agents to work separately from a real estate company.

Legal Changes Are Something You Should be Aware Of

If you are working in real estate or you are in the market for a new home in California, you should be aware of the real estate laws in California.

It is always a good idea to be well-versed in what is required from you and your real estate agent or company. This will prevent you from getting into legal trouble, as well as enforcing the rights you legally have.

If you have any questions about the real estate law changes in California, feel free to reach out to us with them!

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