New California Real Estate Laws for 2027: What Orange County Homeowners, Buyers & Sellers Need to Know

By Ramez Malki, Broker — C&R Properties  |  Updated October 26, 2026

California passed dozens of housing-related laws in 2026, and most take effect January 1, 2027. Some help homeowners directly, such as cheaper ADUs, stronger insurance protections and a bigger property tax break for disabled veterans. Others change the rules for HOAs, landlords and anyone advertising a home. Here is a plain-English rundown of the ones that matter most in Orange County, grouped by who they affect.

1. ADUs: cheaper to build, harder for HOAs to block

SB 1117: lower impact fees and no new utility hookup for conversions

Local impact fees can now be charged only on the livable space above 750 square feet for the first two ADUs on a lot, and above 500 square feet for a junior ADU. Larger units are charged in proportion to the main home’s size. And a single ADU built entirely inside the existing home (a garage or bedroom-wing conversion) can’t be required to add a separate utility connection or pay connection or capacity fees, unless it’s sold separately.

AB 956: two detached ADUs, and CC&R bans are void

Cities must now approve two new detached ADUs (up from one) on a lot with an existing or proposed single-family home, using the fast ministerial process. AB 956 also voids any CC&R provision that prohibits or unreasonably restricts an ADU on a single-family lot that meets the standards. That’s significant in Orange County’s master-planned communities. For background, see our ADU law guide.

AB 2601: faster SB 9 lot splits

Lot splits and small projects under SB 9 and the “starter home” laws get a ministerial approval path with a 60-day deadline: if the city doesn’t act, the application is deemed approved. Homes built under an SB 9 split can also be converted to condominiums so they can be sold separately.

2. HOAs and condos

Orange County has thousands of HOAs, and 2027 brings the biggest set of HOA changes in years. The short version:

• AB 1684: HOAs can’t block code-compliant cooling systems (air conditioners, window units, evaporative coolers, fans, heat pumps), charge fees for them or require a specific contractor.
• SB 222: HOAs can’t stop owners from switching gas appliances to electric or installing heat-pump water heaters and HVAC.
• SB 908: HOAs can’t prohibit energy-efficient replacement windows of the same size and location (reasonable installation rules allowed).
• SB 1267: owners who install EV chargers in common areas are responsible for damage, and HOAs get liability protection.
• AB 1892: when gas, heat, water or electricity is cut off by a problem in the common area, the HOA must start repairs within 14 days and can use emergency assessments or financing to pay for them.
• AB 2050 (2032): minimum reserve funding rules to reduce surprise special assessments.

We cover each one, and what it means for buyers and sellers of condos, in 7 new 2027 laws every Orange County HOA and condo owner should know.

3. Homeowners insurance

• SB 876 (mostly 2028): insurers must offer at least 50% extended replacement cost, pay building-code upgrade costs on a total loss even if you rebuild or buy elsewhere, and cover additional living expenses for at least 24 months after a total loss.
• SB 1301 (2028): at least 90 days’ notice before nonrenewal (180 days to cut coverage), the reasons and any wildfire risk score in writing, and time to fix a problem before you’re dropped.
• AB 1795 (2027): after a wildfire, smoke damage in a home inside the impact zone is presumed to come from that fire, and insurers must pay for testing.
• AB 2038 (2027): after a disaster total loss, insurers must renew for three renewals and at least 36 months; and the moratorium on dropping homes in or next to a wildfire zone grows to two years.

Full details: California homeowners insurance: new protections for 2027–2028.

4. Advertising, AI and privacy

• AB 2025: the 2026 rule requiring disclosure of digitally altered listing photos (AB 723) now covers rental ads too, and applies to landlords and property owners, not just licensees. The unaltered photo must be in the ad or available by link or QR code.
• SB 1050: ads that prominently use an AI-generated “synthetic performer” (a narrator or on-screen person) must clearly say so.
• AB 1609: large companies (over $500 million in revenue, such as big lenders and insurers) can’t pass off a chatbot as a human, and must offer a simple way to reach a person.
• SB 923: consumers can ask a business to delete all personal data it holds about them, including data bought from brokers.
• SB 690: ends private lawsuits under the California Invasion of Privacy Act over standard website analytics, cookies and pixels, a wave of demand letters that had hit many small businesses and brokerages.

5. Property tax

• SB 296 (2027–2031): totally disabled veterans (or their unmarried surviving spouses) who live in their home can exempt 50% of its value up to $1,000,000, or 100% if household income is $83,474 or less. If you or a family member qualifies, contact the Orange County Assessor.
• SB 974: transfers through a properly set up special needs trust can qualify for Prop 19’s parent-child exclusion. See our Prop 19 guide.

6. Mortgages and foreclosures

• AB 1842: if a declared disaster makes your home uninhabitable, your servicer must offer forbearance of up to 180 days, extendable in 90-day steps to 12 months, with no late fees and the account reported as current.
• AB 1847: wildfire-related forbearance can last up to 24 months, with requests accepted until January 7, 2029.
• AB 1957 (through 2030): tightens who can bid after a foreclosure sale, removing “prospective owner-occupants” to stop straw-buyer schemes.
• AB 501: penalties of up to $15,000 for filing harassing liens, lawsuits or lis pendens with no legal basis, plus a faster way to clear bogus UCC filings.

7. Landlords and tenants

• SB 1296 (April 1, 2027): landlords must have a written pet policy and share it on their website, in ads and with every rental application, or refund the application fee if a tenant is turned away over pets they didn’t know about.
• SB 1365: price-gouging limits during a declared emergency now apply to all rental housing regardless of lease length, with defined exceptions for documented repairs.

8. Estate planning, elder protection and energy

• AB 2199: California’s statutory power of attorney form now allows successor agents and authority over digital assets such as email accounts.
• AB 871 (2028): financial institution employees must report suspected elder financial abuse right away, and to the FBI’s Internet Crime Complaint Center within two working days.
• SB 868 (2027–2029): “plug-in” balcony solar devices up to 1,200 watts don’t need utility approval or interconnection fees, just a simple online registration.
• AB 1738 (2028): most cities must offer remote video inspections for reroofs, heat pumps, some solar and battery systems, and smoke and CO detectors.

9. Mobilehomes

Orange County has many mobilehome parks, and several bills affect them: SB 996 aligns the “manufactured home” definition with federal law; AB 2174 allows electronic signatures on title releases; SB 1093 requires park owners to keep residents informed after a disaster; AB 2596 keeps state tenant protections in force in federally funded parks; and AB 1817 requires a specific written notice and 7 days to fix a rule violation before a park can terminate a tenancy.

What hasn’t changed

Rules that took effect in 2025 and 2026 still apply, including the requirement for a written buyer representation agreement before an agent shows homes, the disclosure of digitally altered listing photos, and the 2026 seller disclosure updates. See our seller disclosure guide.

Frequently Asked Questions

When do California’s new 2027 real estate laws take effect?

Most take effect January 1, 2027. Exceptions include the rental pet-policy disclosure (April 1, 2027), most insurance reforms under SB 876 and SB 1301 (January 1, 2028), remote building inspections (2028) and HOA reserve funding rules (2032).

Can my HOA stop me from building an ADU in 2027?

Under AB 956, CC&R provisions that prohibit or unreasonably restrict an ADU on a single-family lot that meets the standards are void and unenforceable. HOAs can still apply reasonable rules that don’t effectively block the ADU.

How many ADUs can I build in California in 2027?

Under AB 956, cities must ministerially approve up to two new detached ADUs on a lot with an existing or proposed single-family home, in addition to other ADU and JADU options under state law.

What is the 2027 disabled veteran property tax exemption in California?

SB 296 exempts 50% of the value of a totally disabled veteran’s principal residence, up to $1,000,000 in value, or 100% if household income is $83,474 or less, for lien dates from 2027 through 2031.

Do I have to disclose virtually staged photos when renting out my home?

Yes, starting in 2027. AB 2025 extends the digitally altered image disclosure rule to rental ads, including those placed by owners and landlords, and requires access to the unaltered photo.

This article is general information, not legal or tax advice. Laws and figures change; confirm details for your situation with a qualified California attorney or CPA. Ramez Malki is a real estate broker and mortgage professional, not an attorney or tax advisor.