If you haven’t had a chance to read the California Department of Real Estate’s Winter 2026 Bulletin yet, we’ve got you covered. It’s a meaty issue with a lot of useful information for licensees, from new laws that took effect this year to a interesting look at how much the industry has changed since 1990. Here’s a quick rundown of what’s inside.
New Laws You Should Know About
The bulletin walks through a solid list of legislation that passed in 2025 and is now on the books. Here are the highlights:
Wildfire Protections for the LA Area
In response to the devastating Los Angeles wildfires, several new laws are now in effect. The Mortgage Forbearance Act (AB 238) requires mortgage servicers to offer up to 12 months of forbearance to borrowers facing financial hardship because of the fires. AB 535 puts a temporary ban on unsolicited purchase offers for residential properties in affected zip codes, running through January 2027. And SB 625 voids any HOA rules or CC&Rs that would block a homeowner from rebuilding a structure that’s substantially similar to what was there before a disaster.
More Rights for Tenants
A few new tenant protections are worth knowing. AB 628 now requires landlords to provide a working stove and refrigerator in residential units for any lease entered into or renewed after January 1, 2026. AB 1414 gives tenants the ability to opt out of internet service subscriptions that are bundled into their rent. And AB 246, the Social Security Tenant Protection Act, gives tenants a legal defense against eviction if they lose income because of a federal Social Security payment disruption.
Disclosing AI-Altered Images (AB 723)
This one is important for anyone doing real estate marketing. If you use digitally altered images in any advertisement, you now need to include a clear disclosure and provide a link to the original, unaltered image. This applies to AI-enhanced photos too.
Smoking History Disclosure (AB 455)
Sellers of single-family homes are now required to disclose any known history of tobacco or nicotine product use on the property. Something worth flagging when you’re working with sellers.
Buyer-Broker Agreement Fix (AB 1521)
This is a technical cleanup, but a meaningful one. The required disclosure in buyer-broker agreements now correctly states that compensation is negotiable between a buyer and a broker, rather than the earlier (and less precise) language saying it’s “not fixed by law.”
DRE Gets a Four-Year Extension (SB 774)
Good news: the DRE’s authorization has been extended from 2026 to 2030. The bill also adds some administrative updates, including a new requirement for applicants and licensees to submit an email address to the Department.
From Storefronts to Platforms: A Look at How Real Estate Has Changed
One of the more interesting reads in this issue is a feature on how the industry has transformed over the past 36 years. In 1990, the typical California real estate office was pretty simple: a storefront, a broker-owner who was there most days, a handful of agents, and a lot of paper. Problems were local and easy to spot.
Today, many brokerages are essentially platforms. Some have thousands of affiliated agents, fully digital transaction workflows, and a broker of record who may never personally interact with the majority of their licensees. That creates a whole new set of compliance headaches: AI-generated listings that nobody reviewed, advertising that buries the broker’s identity, unlicensed assistants doing things they shouldn’t be, and records that technically exist digitally but are never actually organized or reviewed.
The DRE’s takeaway? The obligation hasn’t changed. Brokers are still responsible for how business gets done, whether that’s at a desk or through a dashboard. The job has just gotten harder.
Continuing Education: What You Need to Renew
All California licensees need to complete 45 hours of DRE-approved continuing education every four years. The bulletin breaks down the requirements clearly:
Salespersons – first time real estate license renewal need to complete separate 3-hour courses in ethics, agency, trust fund handling, and risk management, plus a 3-hour fair housing course with an interactive role-play component, a 2-hour implicit bias training, and at least 18 hours of consumer protection coursework.
Brokers and officers renewing for the first time have the same requirements, with one addition: a mandatory course on management and supervision.
Everyone on a subsequent real estate license renewal can take a single 9-hour survey course that covers all the required subjects, or take individual courses in each. Either way, you still need at least 18 hours of consumer protection content.
There are currently 63 DRE-approved CE providers offering 525 courses. Head to www.dre.ca.gov to find one that works for you.
A Primer on Adjustable-Rate Mortgages
The bulletin includes a solid explainer on Adjustable Rate Mortgages (ARMs), which is a good refresher for any mortgage broker. Unlike a fixed-rate loan, an ARM comes with an introductory interest rate that adjusts over time, and those adjustments can add up fast.
To make it concrete, the bulletin uses a $500,000 loan at a 6.25% starting rate. The initial monthly payment would be around $3,079. After the first adjustment of 2%, that climbs to about $3,756. And if the rate ever hits the maximum of 12.50%, the payment could reach $5,351. That’s a big swing, and borrowers need to actually understand what they’re signing up for.
Brokers have a fiduciary duty here. You need to make sure your borrower can realistically handle the potential payment increases, and you’re required to provide specific disclosures including the Adjustable Interest Rate (AIR) Table along with either a Mortgage Loan Disclosure Statement or a Loan Estimate with Addendum. Skipping these steps isn’t just bad practice; it puts your license at risk.
AI in Real Estate: Exciting Tools, Real Responsibilities
The bulletin wraps up with one of its most relevant topics right now: artificial intelligence. Real estate agents are using AI for all kinds of things these days, from writing listing descriptions and managing leads to screening tenants and analyzing market data. The DRE isn’t saying don’t use it. But they are saying: know what you’re responsible for.
A few things to keep in mind:
You’re on the hook for what AI produces. If an AI tool generates a misleading listing description or an inaccurate property valuation, that’s your problem, not the software vendor’s.
Advertising rules still apply. Everything you publish has to be truthful and accurate, regardless of whether a person or an algorithm wrote it. And if images are digitally altered, you need to say so under AB 723.
Fair housing doesn’t have an AI exemption. Tools used for tenant screening or targeted advertising can produce discriminatory outcomes even when they look neutral on the surface. You’re still liable.
Be careful with client data. Before you input sensitive client information into any AI platform, find out how that data is stored, who can access it, and whether it’s shared with third parties.
AI can’t give legal advice. If you’re using AI to generate contract language or explain legal rights to clients, you may be stepping into unauthorized practice of law territory. When in doubt, refer clients to an attorney.
The DRE’s practical advice is to treat AI as a helpful assistant, not an autonomous decision-maker. Review its outputs before using them, establish written policies in your brokerage about how AI can and can’t be used, and document your compliance practices.
Closing Thoughts
There’s a lot in this bulletin worth reading in full, but hopefully this gives you a good sense of what’s new and what to pay attention to. Whether it’s updating your disclosure practices, planning your CE courses, or thinking through how you’re using AI in your business, staying current is one of the best things you can do for your clients and your career.
For the full bulletin, visit www.dre.ca.gov.
