Understand A New Disclosure Bill Affecting Many Sellers Statewide
Key Points of CA AB-968
Who it affects
Disclosure requirements
Impact on flippers
Legal implications
Importance of professional guidance
Given the complexities of AB-968, it’s advisable for sellers to seek professional advise and guidance to ensure compliance and mitigate legal risks. Realtors can assist in preparing the required disclosures, and should be able to help with verifying permit statuses.
Frequently Asked Questions (FAQs) for CA AB 968
What is AB 968?
AB 968 is a law introduced in California during the 2023-2024 legislative session. It specifically targets sellers engaged in flipping homes.
What does AB 968 address?
AB 968 addresses the practice of buying, renovating, and quickly reselling properties.
What are the key aspects of AB 968?
The key aspects of AB 968 include enhanced disclosures, timeframe consideration, and legislative intent.
What are the enhanced disclosures under AB 968?
AB 968 expands existing sales disclosure laws for flipped homes. Sellers are now obligated to provide detailed information regarding any recent renovations, room additions, structural modifications, alterations, or repairs made to the property.
What is the timeframe consideration under AB 968?
The law is particularly relevant for sellers flipping homes within an 18-month period. Sellers falling under this category must adhere to the new disclosure requirements.
What is the legislative intent of AB 968?
AB 968 aims to provide homebuyers with comprehensive information about the property’s recent history, allowing them to make informed decisions.
When did AB 968 become effective?
The law became effective for transactions where the seller accepts an offer on or after July 1, 2024.
What is the impact of AB 968 on the real estate market?
AB 968 emphasizes transparency and consumer empowerment in the dynamic real estate market.
What happens if the requirements of AB 968 are not met?
Any waiver of the requirements of AB 968 is void as against public policy and subject to legal action, fines, or penalties.
You can view the bill by visiting the California Legislative Website, or by clicking here.
