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AB-1240 • 2026

Single-family residential real property: corporate entity: ownership.

Single-family residential real property: corporate entity: ownership.

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Lee
Last action
Official status
Senate - Judiciary
Effective date
Not listed

Plain English Breakdown

The official text states terms will be defined but does not provide those definitions, so meanings in 'terms_to_know' rely on general understanding rather than specific bill language.

Limits on Large Corporate Owners of Single-Family Homes

This law stops business entities that own more than 1,000 single-family homes from buying or leasing additional ones.

What This Bill Does

  • Prohibits a defined business entity with an interest in over 1,000 single-family residential properties from purchasing another one to lease it out.
  • Allows the Attorney General to file a civil lawsuit against any business that breaks this rule.
  • Requires courts to order violators to pay a $100,000 penalty for each violation if the state wins the case.
  • Orders violating businesses to sell the property they illegally bought to an independent third party within one year of the court judgment.
  • States that these rules are the only way to enforce this law.

Who It Names or Affects

  • Business entities defined by the bill that own more than 1,000 single-family residential properties.
  • The Attorney General's office responsible for enforcing the rule through civil actions.
  • Courts required to order penalties and property sales in enforcement cases.

Terms To Know

Business entity
A company or organization defined by this bill that owns real estate properties.
Single-family residential property
A home designed for one family to live in, such as a detached house.

Limits and Unknowns

  • The bill does not specify the exact legal definition of 'business entity' beyond stating it is defined within the text.
  • The effective date of this law is not listed in the provided source material.
  • The specific details on how a property must be sold to an independent third party are not described.

Bill History

  1. California Legislative Information

    Senate - Judiciary

Official Summary Text

Single-family residential real property: corporate entity: ownership.