Smoke Lingers Longer Than You Think: California’s New 2026 Disclosure Rule Ushered in by Assembly Bill 455

Real estate agents and landlords should be aware that starting in 2026, past smoking means present liability. 

California has waged a long, pioneering war on smoking. Think bans on flavors that appeal to youth, workplace bans, high taxes, public education, cessation programs, and other efforts that aimed towards a “tobacco endgame.” Now, property owners and real estate professionals are tasked with joining the state’s disfavor for this habit.

Real estate agents and landlords should be aware that, effective January 1, 2026, California law will require sellers of residential properties and owners of certain properties with long-term tenants to disclose any known tobacco or nicotine residue, as well as any history of smoking activity on the premises. 

The law defines residue from smoking tobacco (also known as thirdhand smoke) as the chemical buildup that lingers after smoking tobacco or nicotine products. This residue settles into carpets, walls, and furniture and penetrates building materials. This residue can remain for years after cigarettes have been butted.

It is the seller’s responsibility to inform potential buyers – in writing – if they have actual knowledge of this residue or any history of residents/occupants smoking tobacco or nicotine products on the premises.

In case you are wondering, this also includes vaping. Vapers can cause property damage through sticky, greasy residue that stains walls and ceilings, and even pose a risk of fire or explosion when the aerosol leaves behind nicotine, oils, and other chemicals that settle on surfaces and in HVAC systems.

What transactions are covered

The new disclosure applies to all real estate that requires a Transfer Disclosure Statement (TDS), the mandatory form where sellers detail known material facts, defects, and history of a residential property to potential buyers so that they can make the most informed decisions.

This generally impacts:

• Sales of one-to-four unit residential properties;

• Manufactured homes and mobile homes; and

• Leases lasting more than one year.

Certain exemptions apply, including transfers made through probate, foreclosure, bankruptcy, REO sales, and specific trusts.

Let’s discuss what this means.

For Realtors: Don’t treat thirdhand smoke differently from other environmental hazards, and don’t speculate; ask sellers direct questions about prior smoking or vaping and document responses in writing. Be aware that cosmetic improvements do not eliminate disclosure obligations.

For landlords: Use a smoking policy addendum, not a hazard disclosure, for ordinary rentals and avoid guaranteeing the absence of thirdhand smoke unless verified. Retain cleaning, remediation, and turnover records and update their lease templates and property management procedures to ensure compliance with these changes.

Local smoking ordinances still control a vast amount of rental housing stock

Many cities throughout California regulate smoking in multifamily buildings through mandatory no-smoking policies, designated smoking areas, and rules regarding signage and tenant notice requirements.

When in doubt, consult proper legal counsel.