Learn how 2025 laws, including mandatory buyer agreements and extended foreclosure timelines, will impact your next real estate property.
The real estate landscape is changing in 2025, and it’s crucial to stay informed. Whether you're buying, selling, or managing property, these new laws will affect you. Here’s a detailed breakdown of what you need to know to stay ahead.
Buyer representation agreements are now required. Starting in 2025, real estate agents must have a signed buyer representation agreement before showing any property. This is now state law. The agreement must include:
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Agent compensation details.
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Services to be rendered.
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When compensation is due.
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A specific expiration date.
Contracts can last no longer than three months. If the agreement needs to be renewed, it must be done in writing. No automatic renewals are allowed. This ensures both parties are clear on the terms of the arrangement and helps avoid misunderstandings.
Balcony inspections: don't miss the deadline. If your building has balconies, decks, or exterior stairways, pay close attention to the new inspection rules. Originally, all balconies had to be inspected by January 2025. This deadline has now been extended to January 2026, but condo associations still need to inspect every nine years.
If you live in a building with these structures, make sure they’re inspected before the deadline. The new law applies to buildings with three or more units, and balconies must be supported by wood or wood-based products. Delaying this inspection could lead to safety issues and costly repairs.
"Understanding real estate laws can be challenging, but having an expert to guide you can simplify things for you."
Contractor exemption for small jobs. The exemption for unlicensed contractors has been increased. Previously, you could hire an unlicensed contractor for jobs under $500. Now, the limit is $1,000, as long as the work doesn’t require a building permit. This makes small home repairs and maintenance more affordable and accessible.
Foreclosure sale extensions. If you or someone you know is facing foreclosure, there’s good news. You can now extend the foreclosure sale by 45 days if you provide a listing agreement or purchase agreement. Here’s what you need to know:
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The listing agreement must be with a licensed real estate broker.
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The listing must be placed on a public marketing platform (like the MLS).
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The agreement must be sent by certified mail or another trackable delivery service.
The extension can only be used once, but it provides extra time to explore options before the property is sold at auction.
Probate small estate exemption gets a big boost. The small estate exemption for probate cases has been raised significantly. If a person passes away without a will, and the property is valued under $750,000 (for primary residences), the probate process will be faster and easier. The limit was previously set at $150,000. This change applies starting in April 2025 and will be adjusted every three years based on the Consumer Price Index.
These new laws will impact various aspects of real estate, from buyer agreements to property inspections and foreclosure processes. Staying informed is key to navigating these changes smoothly. If you have any questions or need clarification on how these laws affect you, feel free to call or text me at (562) 316-2915 or email [email protected]. I'm here to help you understand these laws and be prepared for the 2025 housing market.
