Today we are going to tell you about California Real Estate Laws you need to know. Izabella Lipetski is here with her knowledge and years of experience in real estate market of California. Let us talk about Real Estate Laws in California.


The California legislature passed a series of latest real estate laws that brokers and agents should remember. While the common real estate laws are implemented on January 1, 2021, some laws became active in September 2020. It’s important to assess your practices to work out if you comply with the new real estate laws.


The ABC test and therefore the Dynamex case doesn’t apply in the determination of whether appraisers are independent contractors or employees, and instead, the more lenient multi-factor test is going to be employed as long as six criteria are met.

The California Supreme Court case, Dynamex Operations W. Inc. v. court, and Assembly Bill 5 passed, implement a strict 3-part test, commonly referred to as the “ABC” test, to decide if workers are employees or independent contractors for purposes of the Labor Code, the Redundancy Insurance Code, and therefore the salary orders of the economic Welfare Commission. Exempt relationships, on the other hand, are ruled by the more lenient multifactor test that was previously used in S. G. Borello & Sons, Inc. v. Commercial Relations Department.

This law states that appraisers are released from the ABC test in determining their status as independent contractors or employees.


Requires common interest developments (CIDs) to permit a minimum of 25% of householders to rent or lease out their units starting January 1, 2021, no matter whether the HOA has formally amended their governing documents.

Under the new real estate law, any provision in a governing file “that excludes, has the effect of prohibiting, or unreasoningly limits” the rental of any of the separate interests, (“ADU”) accessory dwelling units, or (“JADU”) junior accessory dwelling units in a public association is reduced unenforceable.

There is ambiguity over the impact of this language on least rental terms, but the real estate law allows associations to ban short-term and temporary rentals and also allows associations to put a rental cap of 25% of the separate interests in the association.


Requires employers to notify employees that they are exposed to COVID-19 if they were on the premises of the worksite in the infectious period of an individual who had COVID-19. The notice must describe information regarding COVID-19 related benefits to which the worker could also be entitled.

The law states employers, who have notice of possible COVID-19 exposure, must give written notice to permanent and subcontractor employees who were at the worksite at an equivalent time as a potentially infected person. Employers need to provide the notice, by the standard method that wants to communicate employment-related information in their business in one business day of learning of possible COVID-19 exposure.

The notice should protect the employee’s private data. It should also inform the recipient of COVID-19 wage, leave benefits, and therefore the employer’s implemented or planned disinfection plan.


Requires mortgage workers to follow related federal directions regarding COVID-19 related forbearance. Failing to try to do so, entitles the borrower to injunctive relief, damages, restitution, and attorney fees as a separate right under California law.

This law temporarily prevents evictions due to hardships associated with COVID-19. More specifically, it prevents exclusion of tenants enduring financial hardship due to COVID-19 through January 2021 and delays rental recovery by landlords in March 2021. AB 3088 only applies to landlords; however, not a part of this bill cancels any payment responsibilities of a tenant.


Prevents foreclosure on a lien placed on a person’s principal place of residence if the underlying judgment, in turn, was supported by consumer debt.

This law prevents foreclosure of an individual’s principal place of residence if the underlying lien on the residence is predicated on unsecured consumer debt. Supporters of Assembly Bill 2463 think it’ll have a positive effect because the tactic of collection by foreclosing on a lien is dear and is disruptive to communities, particularly when the underlying debt is for a little amount.


Real estate owners are advised to consult trusted legal advisors to make sure compliance with critical new real estate laws and regulations. Izabella Lipetski, the best real estate agent in California also monitors legislative and regulatory action as well as significant lawsuits to best serve her clients.

If you have any questions concerning the potential application of any of the real estate laws included above, please contact Izabella Lipetski.