Editor’s Note: The RISMedia series, Legislative Round-Up looks at pending and passed federal and state-level legislation that impacts real estate professionals.
Bill affirming agents’ independent contractor status reintroduced to Congress
Representative Kevin Kiley (R-California) has reintroduced the “Direct Seller and Real Estate Agent Harmonization Act.” The bill would clarify that, under existing labor law, the term “employee” does not include direct sellers and real estate agents, reaffirming independent contractor status.
The bill, introduced in May, has bipartisan support with three Republican cosponsors and three Democratic ones. The National Association of Realtors® (NAR) has also supported the legislation when it was previously introduced in a past congressional session.
Currently, most real estate agents are explicitly classified as independent contractors based on a longstanding IRS code, but recent questions over employee designations or rights—mostly focused on gig workers rather than real estate agents—created concerns that agents could see that designation shift.
Massachusetts bill proposes board to enforce Fair Housing law among brokers
A bill in the Massachusetts state legislature is meant to “end housing discrimination within the Commonwealth” and it focuses on real estate brokers to achieve that goal.
The bill would create a seven member Board of Registration for Real Estate Brokers and Salespersons. The bill mandates that four members of the board be licensed real estate brokers who have done business for at least seven years, one be an expert in Fair Housing or a tenants’ organization member, and two be “representatives of the public.”
The board’s responsibilities would be publishing a quarterly list of newly licensed brokers, as well as a list of complaints filed against brokers and actions taken by the board to investigate and/or discipline licensees based on the complaints.
The bill would also raise the license suspension time of a broker with a repeat Fair Housing violation from 90 to 180 days, as well as requiring broker applicants to take courses on Fair Housing law.
New York state restricts institutional buyers in single-family home market
The presence of large financial firms as buyers in the single-family home market has been controversial, with critics claiming this disadvantages individual buyers and that the institutional investors turn these homes into rental units. Legislators across the country have put forth proposals addressing the situation—and one bill in New York state made it over the finish line.
As of this year, certain institutional investors face a 90-days-after-listing waiting period before they can purchase one/two family homes, as well as the loss of previous tax breaks they would’ve received in these purchases. Criteria for an institutional investor meeting these limits includes ownership of 10 or more single/double family properties and net worth of $30 million or more.
Also in the tri-state area, a handful of bills aimed at restricting institutional investors have made it into the New Jersey assembly. One bill would impose a fee on investors for ownership over “unproductive” residential units in New Jersey. Another would similarly create a tax on investors with the goal of “promoting housing affordability.”
California wildfire reconstruction bill postponed after public backlash
Southern California experienced devastating wildfires earlier in 2025 and is still in the process of rebuilding. One bill that would’ve addressed the rebuilding effort has been tabled following misinformation that spread just like the fires themselves, with concerns over the rebuilding process mixed with conspiracy theories creating a public backlash.
The bill, known as SB 549, would’ve created a local authority to buy up burned lots in Los Angeles, rebuild homes and sell them back to original owners at a discount. The bill follows the recommendation for the creation of such an authority by a Los Angeles rebuilding commission.
However, conspiracy theories spread—one in particular floated by reality TV star and LA resident Spencer Pratt—that the bill would facilitate the rezoning construction of low income housing on the purchased lots. State Senator Benjamin Allen, the bill’s sponsor, claimed to the Los Angeles Times that this was in part due to conflation of a different portion of the bill that calls for state spending on low income housing. (Allen added the language about the rebuilding authority to an existing bill as a deadline for introducing entirely new legislation had passed, per the LA Times).
As of July 2025, the bill appears to be “paused” until 2026.
The local Pasadena-Foothills Association of Realtors released a statement on the legislation’s tabling. The statement clarified misinformation surrounding the bill but still cited other criticisms that the bill was “vague, rushed and disconnected from the community it claims to protect” and it could lead to the gentrification/pricing out of original community residents.
Florida clears way for religious institutions to build affordable housing on their land
Earlier in August, Florida passed what has been called the “Yes In God’s Backyard” Act, a play on YIMBY (Yes In My Backyard).
Under this law, local Florida governments can give local religious institutions the ability to construct affordable housing on land they own regardless of zoning requirements on the land.
A similar bill was introduced at a nationwide level during the 2023-2024 congressional session, though it didn’t advance in Congress.
Texas seeks to block squatters, foreign real estate investment
On August 14, 2025, Texas passed two bills designed to defend private property rights within the state. One clarifies the timeline for the eviction process, including trials and appeals, so as to streamline it, while another allows law enforcement officials such as sheriffs to take swifter action after a squatter complaint is filed.
A separate piece of legislation passed in Texas, taking effect on September 1, restricts real estate sales to nationals or companies based in China, Russia, North Korea or Iran.
A report from NAR in 2024 found that foreign investment in U.S. real estate was down, but that Texas was the second most popular state for it after Florida. A bill passed in 2023 in Florida similarly restricted foreign land sales to certain countries or nationals thereof and was met with backlash over claims it permitted housing discrimination.
Lawsuits were filed against the Florida bill, including a state-level case filed by AREAA (Asian Real Estate Association of America) alongside other housing groups in 2024, as well as a federal lawsuit filed by Chinese citizens living in Florida which resulted in an appeals court partially blocking the law from going into effect.
