Senate BillPassed first houseCivil
SB 880: Residential property: transfers: institutional investors.
What SB 880 does, verified July 2, 2026
The proposed legislation aims to protect consumers in the residential property market by regulating fees charged by vendors or lessors. It prohibits vendors or lessors from charging excessive fees for signing and delivering documents related to the transfer, cancellation, or reconveyance of a property. The proposed law extends this prohibition to all residential properties, not just single-family homes, to ensure fairness and transparency in property transactions.
Bill journey
✓IntroducedComplete
✓In CommitteeComplete
✓First Chamber FloorComplete
4Second ChamberCurrent
5GovernorPending
6ChapteredPending
Last action: June 30 set for first hearing. Failed passage in committee. (Ayes 4. Noes 3.) (2026-06-30)Alert me
Author and sponsors
Full contact details, staff, and committees with Connect, $16/moUnlockRecent actions13 total · showing 5
| Jun. 30, 2026 | June 30 set for first hearing. Failed passage in committee. (Ayes 4. Noes 3.) |
| Jun. 11, 2026 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD. |
| May. 18, 2026 | Referred to Com. on JUD. |
| May. 07, 2026 | In Assembly. Read first time. Held at Desk. |
| May. 07, 2026 | Read third time. Passed. (Ayes 36. Noes 0. Page 4166.) Ordered to the Assembly. |
Latest bill textAmended version, June 11, 2026 · 2,380 words
| Amended IN Assembly June 11, 2026 |
| Amended IN Senate March 25, 2026 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Senate Bill
No. 880
| Introduced by Senator Wahab |
January 12, 2026 |
An act to amend Section 1097 add Article 1.6 (commencing with Section 1102.50) to Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
SB 880, as amended, Wahab. Residential property: contract: fees. transfers: institutional investors.
Prospective federal law, the federal 21st Century ROAD to Housing Act (H.R. 6644), prohibits a large institutional investor from purchasing, or entering into a contract to directly or indirectly purchase, any single-family home, except as specified.
If the above-described federal legislation is enacted, this bill would authorize the Attorney General, district attorney, or county counsel to coordinate with the Secretary of the United States Department of Housing and Urban Development, the Director of the United States Federal Housing Finance Agency, the Chair of the United States Securities and Exchange Commission, and the Secretary of the Treasury of the United States in the implementation of federal regulations, as described, related to violations of federal law involving tenants residing in properties owned, maintained, and managed by institutional investors.
Existing law establishes various real estate disclosure requirements applicable to the transfer of residential real property.
Before entering into specified transactions relating to residential real property, including an individual sale of residential real property, this bill would require an institutional investor, as defined, to provide written notice of the institutional investor’s intent to sell the property to each tenant at least 90 days before advertising the residential real property for sale in a multiple listing service, as specified. The bill would require the notice to include, among other things, a statement that the tenant has the right to remain in possession until the end of the lease term, except as specified.
For sales of residential real property containing 1 to 4 residential dwelling units by an institutional investor, this bill would require the institutional investor to, among other things, only accept offers from prospective owner-occupants, including any tenant in possession, during the first 30 days after the property is listed for sale. The bill would require the prospective owner-occupant to submit with their offer an affidavit or declaration executed under penalty of perjury stating they are purchasing the residential real property as an owner-occupant, as described. The bill would subject a prospective owner-occupant or an institutional investor to criminal or civil liability. The bill would also require an institutional investor that sells residential real property to record, or cause to be recorded, a certification of compliance under penalty of perjury, as specified. The bill would require the failure to record the certificate of compliance to result in a civil penalty, as described. By expanding the scope of existing crimes, the bill would impose a state-mandated local program.
This bill would also authorize the Attorney General, district attorney, city attorney, and tenant to bring an action in the superior court to enforce the bill’s provisions, and upon prevailing, would allow for injunctive relief and civil penalties, as specified. The bill would require its provisions to be construed consistently with the above-described federal act, if enacted, and would make its provisions severable.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law prohibits the vendor or lessor of a single-family residential property from contracting for or exacting any fee in excess of $10 for the act of signing and delivering a document in connection with the transfer, cancellation, or reconveyance of any title or instrument at the time the buyer or lessee exercises an option to buy, or completes performance of the contract for the sale of, the property.
This bill would modify that prohibition by extending it to the vendor or lessor of any residential property.
The people of the State of California do enact as follows:
SECTION 1.
Article 1.6 (commencing with Section 1102.50) is added to Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, to read:Article 1.6. Transfers by Institutional Investors
1102.50.
It is the intent of the Legislature to do all of the following:(a) Promote owner occupancy by enacting legislation consistent with the federal 21st Century ROAD to Housing Act (H.R. 6644), referred to in this article as the “federal act,” which prioritizes homeownership by ensuring prospective owner-occupants have the first opportunity to purchase residential real properties sold by institutional investors in California.
(b) Ensure that the requirements of this article are consistent with the stated goals of the federal act, which are to expand homeownership opportunities and strengthen neighborhoods and communities by requiring institutional investors to respond to offers from prospective owner-occupants before accepting or considering other offers to purchase residential real property.
1102.51.
(a) For purposes of this article, the following definitions apply:(1) “Bundled sale” means the sale or transfer of two or more residential real properties to the same purchaser, or to affiliated purchasers, in a single transaction or a series of related transactions.
(2) “Federal act” means the federal 21st Century ROAD to Housing Act (H.R. 6644).
(3) (A) “Institutional investor” means an entity, including, but not limited to, a corporation, a limited liability company, a limited liability partnership, or a real estate investment trust, that directly or indirectly owns, or has investment control of, residential real properties, consistent with the definition of “large institutional investor” in Section 1001 of the federal act.
(B) “Institutional investor” does not include a natural person.
(4) “Multiple listing service” has the same meaning as described in Section 1087.
(5) “Prospective owner-occupant” means a natural person who submits the affidavit or declaration described in subdivision (c) of Section 1102.53 stating an intent to occupy the residential real property as the person’s principal place of residence.
(6) “Real estate investment trust” has the same meaning as defined in Section 856 of the Internal Revenue Code.
(7) “Residential real property” means a single-family residential property that includes, but is not limited to, an accessory dwelling unit or a junior accessory dwelling unit, that has a single assessor’s parcel number for each unit or a single assessor’s parcel number that covers up to four units on a single parcel of real property, consistent with the definition of “single-family home” in Section 1001 of the federal act.
(b) This article shall be construed consistently with Section 1001 of the federal act, if enacted, and any regulations adopted pursuant to that section.
1102.52.
(a) An institutional investor shall comply with the requirements of this article before entering into any of the following transactions:(1) An individual sale of residential real property.
(2) A portfolio or bulk sale of residential real property.
(3) An affiliated transfer of residential real property.
(4) Any other ownership transfer of residential real property conveying control of housing assets.
(b) If the residential real property is occupied by a tenant, the institutional investor shall provide written notice of the institutional investor’s intent to sell the property to each tenant at least 90 days before advertising the residential real property for sale in a multiple listing service, or similar system.
(c) The notice required by subdivision (b) shall include all of the following:
(1) A statement that the tenant has the right to remain in possession until the end of the lease term, except that the tenancy may be terminated upon 90 days’ written notice to quit if the purchaser or successor in interest intends to occupy the housing unit as the purchaser’s principal place of residence as required to claim the homeowners’ property tax exemption pursuant to Section 218 of the Revenue and Taxation Code.
(2) Information regarding financing, homeownership counseling, and homebuyer assistance resources available to the tenant, including housing counseling agencies approved by the United States Department of Housing and Urban Development and, if established, the renter outreach resource created pursuant to Section 1001 of the federal act.
(3) A statement that, if the tenant intends to purchase the residential real property, the tenant may submit an offer as a prospective owner-occupant during the period described in subdivision (b) of Section 1102.53.
1102.53.
All of the following applies to the sale by an institutional investor of residential real property containing one to four residential dwelling units, inclusive:(a) (1) The institutional investor shall publicly market the residential real property and shall list it for sale in a multiple listing service, or another publicly accessible platform.
(2) The institutional investor shall not conduct an off-market transfer, use a pocket listing, or employ marketing practices designed to favor investors or affiliated buyers.
(b) During the first 30 days after the residential real property is listed for sale, the institutional investor shall accept offers only from prospective owner-occupants, including any tenant in possession.
(c) A prospective owner-occupant shall submit with the offer an affidavit or declaration, executed pursuant to Section 2015.5 of the Code of Civil Procedure, stating that the person is purchasing the residential real property as an owner-occupant and intends to occupy the housing unit as the person’s principal place of residence as required to claim the homeowners’ property tax exemption, pursuant to Section 218 of the Revenue and Taxation Code.
(d) The institutional investor shall respond, in writing, to every offer received from a prospective owner-occupant during the first 30 days after the property is listed for sale before accepting or considering any other offer.
(e) A fraudulent statement by a prospective owner-occupant or an institutional investor under this section may subject the person to civil or criminal liability.
(f) Notwithstanding any other law, an institutional investor shall not conduct a bundled sale of residential real property.
(g) If a tenant does not express interest in purchasing the residential real property, the institutional investor shall make the residential real property available first to prospective owner-occupants and other natural persons before investor purchasers, in accordance with this section.
(h) An institutional investor shall not do any of the following for the purpose of avoiding the requirements of this article:
(1) Transfer residential real property to a shell entity, an affiliated purchaser, a related party, or an investor intermediary.
(2) Conduct an off-market transfer of the residential real property.
(3) Structure a transaction to avoid the applicability threshold described in subdivision (a) of Section 1102.51.
(i) This article does not apply to the following transfers of residential real property:
(1) A transfer resulting from a foreclosure or lender workout.
(2) A transfer resulting from probate or inheritance.
(3) A transfer pursuant to a court order.
(4) A transfer resulting from a corporate reorganization or restructuring in which the beneficial ownership of the residential real property does not materially change.
1102.54.
(a) An institutional investor that sells residential real property shall record, or cause to be recorded, in the office of the county recorder of the county in which the property is located, a certification of compliance under penalty of perjury at the time of sale, stating that one of the following applies:(1) The institutional investor has substantially complied with the requirements of this article, with a copy of the notice to tenants required by subdivision (b) of Section 1102.52 attached.
(2) The institutional investor or the transaction is exempt from the requirements of this article pursuant to subdivision (i) of Section 1102.53.
(b) Failure to record the certification of compliance shall result in a civil penalty of ____ dollars ($____) payable to ____.
1102.55.
(a) The Attorney General, district attorney, city attorney, or tenant may bring an action in the superior court to enforce any right or provision under this article and, upon prevailing, shall be entitled to either or both of the following remedies:(1) Injunctive relief.
(2) A civil penalty in an amount not to exceed the greater of one million dollars ($1,000,000) per violation or three times the purchase price of the residential real property, consistent with the penalty established by Section 1001 of the federal act.
(b) If the court finds that the institutional investor willfully or knowingly sold or transferred the residential real property without complying with this article, the court may impose additional damages of up to two times the civil penalty described in paragraph (2) of subdivision (a).
(c) If Section 1001 of the federal act is enacted, the Attorney General, a district attorney, or a county counsel may coordinate with the Secretary of the United States Department of Housing and Urban Development, the Director of the United States Federal Housing Finance Agency, the Chair of the United States Securities and Exchange Commission, and the Secretary of the Treasury of the United States in the implementation of regulations adopted pursuant to that section relating to violations of federal law involving tenants residing in properties owned, maintained, or managed by institutional investors.
1102.56.
The provisions of this article are severable. If any provision of this article or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.SEC. 2.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.(a)No vendor or lessor of a residential property shall contract for or exact any fee in excess of ten dollars ($10) for the act of signing and delivering a document in connection with the transfer, cancellation, or reconveyance of any title or instrument at the time the buyer or lessee exercises an option to buy, or completes performance of the contract for the sale of, the property.
(b)The provisions of this section shall apply prospectively only.
Text of SB 880 as amended, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions