Amended IN Senate April 21, 2025 Amended IN Senate March 26, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 722Introduced by Senator WahabFebruary 21, 2025An act to add and repeal Title 8 (commencing with Section 945.20) to of Part 2 of Division 2 of the Civil Code, relating to real property.LEGISLATIVE COUNSEL'S DIGESTSB 722, as amended, Wahab. Transfer of real property: single-family homes, townhomes, and condominiums.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, beginning on January 1, 2026, and until January 1, 2031, 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, beginning on January 1, 2026, and until January 1, 2031, 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 attorneys fees and costs.This bill would repeal these provisions as of January 1, 2031.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Title 8 (commencing with Section 945.20) is added to Part 2 of Division 2 of the Civil Code, to read:TITLE 8. Sale of Single-Family Homes, Townhomes, and Condominiums945.20. For purposes of this title, the following definitions apply:(a) 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:(1) 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.(2) The person owns 25 percent or more of the equity interest of the business entity.(b) 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 entitys successors, assignees, or affiliates, but does not include either of the following:(1) A nonprofit corporation or other nonprofit legal entity.(2) A person or entity primarily engaged in the construction of new housing.(c) 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.945.21. (a) Beginning on January 1, 2026, and until January 1, 2031, a 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.(b) Beginning on January 1, 2026, and until January 1, 2031, a 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.(c) 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.(d) 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.(e) 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.945.22.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.945.23.Beginning on January 1, 2026, and until January 1, 2031, 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.945.24.945.22. (a) 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:(1) A civil penalty of one hundred thousand dollars ($100,000) for each single-family home, townhome, or condominium sold in violation of this section.(2) Reasonable attorneys fees and costs.(b) This section is the exclusive means for enforcing this title.945.23. This title shall remain in effect only until January 1, 2031, and as of that date is repealed.
Amended IN Senate April 21, 2025 Amended IN Senate March 26, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 722Introduced by Senator WahabFebruary 21, 2025An act to add and repeal Title 8 (commencing with Section 945.20) to of Part 2 of Division 2 of the Civil Code, relating to real property.LEGISLATIVE COUNSEL'S DIGESTSB 722, as amended, Wahab. Transfer of real property: single-family homes, townhomes, and condominiums.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, beginning on January 1, 2026, and until January 1, 2031, 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, beginning on January 1, 2026, and until January 1, 2031, 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 attorneys fees and costs.This bill would repeal these provisions as of January 1, 2031.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
Amended IN Senate April 21, 2025 Amended IN Senate March 26, 2025
Amended IN Senate April 21, 2025
Amended IN Senate March 26, 2025
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Senate Bill
No. 722
Introduced by Senator WahabFebruary 21, 2025
Introduced by Senator Wahab
February 21, 2025
An act to add and repeal Title 8 (commencing with Section 945.20) to of Part 2 of Division 2 of the Civil Code, relating to real property.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 722, as amended, Wahab. Transfer of real property: single-family homes, townhomes, and condominiums.
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, beginning on January 1, 2026, and until January 1, 2031, 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, beginning on January 1, 2026, and until January 1, 2031, 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 attorneys fees and costs.This bill would repeal these provisions as of January 1, 2031.
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, beginning on January 1, 2026, and until January 1, 2031, 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, beginning on January 1, 2026, and until January 1, 2031, 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 attorneys fees and costs.
This bill would repeal these provisions as of January 1, 2031.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Title 8 (commencing with Section 945.20) is added to Part 2 of Division 2 of the Civil Code, to read:TITLE 8. Sale of Single-Family Homes, Townhomes, and Condominiums945.20. For purposes of this title, the following definitions apply:(a) 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:(1) 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.(2) The person owns 25 percent or more of the equity interest of the business entity.(b) 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 entitys successors, assignees, or affiliates, but does not include either of the following:(1) A nonprofit corporation or other nonprofit legal entity.(2) A person or entity primarily engaged in the construction of new housing.(c) 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.945.21. (a) Beginning on January 1, 2026, and until January 1, 2031, a 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.(b) Beginning on January 1, 2026, and until January 1, 2031, a 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.(c) 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.(d) 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.(e) 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.945.22.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.945.23.Beginning on January 1, 2026, and until January 1, 2031, 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.945.24.945.22. (a) 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:(1) A civil penalty of one hundred thousand dollars ($100,000) for each single-family home, townhome, or condominium sold in violation of this section.(2) Reasonable attorneys fees and costs.(b) This section is the exclusive means for enforcing this title.945.23. This title shall remain in effect only until January 1, 2031, and as of that date is repealed.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Title 8 (commencing with Section 945.20) is added to Part 2 of Division 2 of the Civil Code, to read:TITLE 8. Sale of Single-Family Homes, Townhomes, and Condominiums945.20. For purposes of this title, the following definitions apply:(a) 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:(1) 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.(2) The person owns 25 percent or more of the equity interest of the business entity.(b) 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 entitys successors, assignees, or affiliates, but does not include either of the following:(1) A nonprofit corporation or other nonprofit legal entity.(2) A person or entity primarily engaged in the construction of new housing.(c) 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.945.21. (a) Beginning on January 1, 2026, and until January 1, 2031, a 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.(b) Beginning on January 1, 2026, and until January 1, 2031, a 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.(c) 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.(d) 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.(e) 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.945.22.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.945.23.Beginning on January 1, 2026, and until January 1, 2031, 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.945.24.945.22. (a) 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:(1) A civil penalty of one hundred thousand dollars ($100,000) for each single-family home, townhome, or condominium sold in violation of this section.(2) Reasonable attorneys fees and costs.(b) This section is the exclusive means for enforcing this title.945.23. This title shall remain in effect only until January 1, 2031, and as of that date is repealed.
SECTION 1. Title 8 (commencing with Section 945.20) is added to Part 2 of Division 2 of the Civil Code, to read:
### SECTION 1.
TITLE 8. Sale of Single-Family Homes, Townhomes, and Condominiums945.20. For purposes of this title, the following definitions apply:(a) 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:(1) 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.(2) The person owns 25 percent or more of the equity interest of the business entity.(b) 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 entitys successors, assignees, or affiliates, but does not include either of the following:(1) A nonprofit corporation or other nonprofit legal entity.(2) A person or entity primarily engaged in the construction of new housing.(c) 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.945.21. (a) Beginning on January 1, 2026, and until January 1, 2031, a 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.(b) Beginning on January 1, 2026, and until January 1, 2031, a 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.(c) 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.(d) 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.(e) 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.945.22.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.945.23.Beginning on January 1, 2026, and until January 1, 2031, 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.945.24.945.22. (a) 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:(1) A civil penalty of one hundred thousand dollars ($100,000) for each single-family home, townhome, or condominium sold in violation of this section.(2) Reasonable attorneys fees and costs.(b) This section is the exclusive means for enforcing this title.945.23. This title shall remain in effect only until January 1, 2031, and as of that date is repealed.
TITLE 8. Sale of Single-Family Homes, Townhomes, and Condominiums945.20. For purposes of this title, the following definitions apply:(a) 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:(1) 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.(2) The person owns 25 percent or more of the equity interest of the business entity.(b) 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 entitys successors, assignees, or affiliates, but does not include either of the following:(1) A nonprofit corporation or other nonprofit legal entity.(2) A person or entity primarily engaged in the construction of new housing.(c) 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.945.21. (a) Beginning on January 1, 2026, and until January 1, 2031, a 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.(b) Beginning on January 1, 2026, and until January 1, 2031, a 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.(c) 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.(d) 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.(e) 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.945.22.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.945.23.Beginning on January 1, 2026, and until January 1, 2031, 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.945.24.945.22. (a) 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:(1) A civil penalty of one hundred thousand dollars ($100,000) for each single-family home, townhome, or condominium sold in violation of this section.(2) Reasonable attorneys fees and costs.(b) This section is the exclusive means for enforcing this title.945.23. This title shall remain in effect only until January 1, 2031, and as of that date is repealed.
TITLE 8. Sale of Single-Family Homes, Townhomes, and Condominiums
TITLE 8. Sale of Single-Family Homes, Townhomes, and Condominiums
#### TITLE 8. Sale of Single-Family Homes, Townhomes, and Condominiums
945.20. For purposes of this title, the following definitions apply:(a) 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:(1) 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.(2) The person owns 25 percent or more of the equity interest of the business entity.(b) 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 entitys successors, assignees, or affiliates, but does not include either of the following:(1) A nonprofit corporation or other nonprofit legal entity.(2) A person or entity primarily engaged in the construction of new housing.(c) 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.
945.20. For purposes of this title, the following definitions apply:
###### 945.20.
(a) 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:
(1) 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.
(2) The person owns 25 percent or more of the equity interest of the business entity.
(b) 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 entitys successors, assignees, or affiliates, but does not include either of the following:
(1) A nonprofit corporation or other nonprofit legal entity.
(2) A person or entity primarily engaged in the construction of new housing.
(c) 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.
945.21. (a) Beginning on January 1, 2026, and until January 1, 2031, a 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.(b) Beginning on January 1, 2026, and until January 1, 2031, a 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.(c) 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.(d) 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.(e) 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.
945.21. (a) Beginning on January 1, 2026, and until January 1, 2031, a 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.
###### 945.21.
(b) Beginning on January 1, 2026, and until January 1, 2031, a 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.
(c) 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.
(d) 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.
(e) 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.
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.
Beginning on January 1, 2026, and until January 1, 2031, 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.
945.24.945.22. (a) 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:(1) A civil penalty of one hundred thousand dollars ($100,000) for each single-family home, townhome, or condominium sold in violation of this section.(2) Reasonable attorneys fees and costs.(b) This section is the exclusive means for enforcing this title.
945.24.945.22. (a) 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:
###### 945.24.945.22.
(1) A civil penalty of one hundred thousand dollars ($100,000) for each single-family home, townhome, or condominium sold in violation of this section.
(2) Reasonable attorneys fees and costs.
(b) This section is the exclusive means for enforcing this title.
945.23. This title shall remain in effect only until January 1, 2031, and as of that date is repealed.
945.23. This title shall remain in effect only until January 1, 2031, and as of that date is repealed.
###### 945.23.