Transfer of real property: single-family homes, townhomes, and condominiums.

Senator Wahab's proposal to regulate California's residential property market would restrict business entities from purchasing newly constructed homes while mandating transparency in real estate transactions. The legislation creates a five-year window, from 2026 through 2031, during which developers must sell new single-family homes, townhomes, and condominiums exclusively to individual buyers rather than corporate entities.

The bill establishes specific parameters around property transfers and ownership structures. Natural persons would be limited to transferring no more than four residential properties to business entities where they maintain beneficial ownership - defined as either exercising substantial control or holding at least 25% equity stake. When properties are sold to business entities, those organizations must disclose all beneficial owners in transfer documents. The restrictions exclude nonprofit organizations and companies primarily engaged in housing construction.

Enforcement authority would rest with the Attorney General, district attorneys, county counsels, and city attorneys, who could pursue civil actions against violations. The legislation sets penalties at $100,000 per property sold in violation of its provisions, plus reasonable attorney fees and costs. This enforcement mechanism serves as the exclusive means for ensuring compliance with the new requirements.