Understanding California’s New AB-968 Disclosure Bill

California Assembly Bill No. 968

Understand A New Disclosure Bill Affecting Many Sellers Statewide

Are you planning to sell a home you bought in the past 18 months?
California Assembly Bill No. 968 (AB-968) is for you.
This bill, coming effective on July 1, 2024, requires additional disclosures, which could change the landscape for those flipping properties throughout the state, or even homeowners who decide to sell a home shortly after purchasing it.
How so?
If you’ve owned a home for less than 18 months and made repairs or improvements, you’ll need to provide a detailed report to the buyer.

Key Points of CA AB-968


Who it affects

The bill primarily affects “residential flippers,” who are individuals or businesses that buy residential properties, make improvements, and then sell them for a profit within a short period of time.

Disclosure requirements 

AB-968 requires these sellers to provide comprehensive disclosure of all repairs, renovations, room additions, structural modifications, and other alterations made to the property since they acquired it. This includes the names of all contractors involved and copies of any related permits.

Impact on flippers

This law introduces additional responsibilities for residential flippers. They must now meticulously track and report all changes made to the property, even minor repairs (repairs under $500 are exempt), and ensure that all work is properly permitted and recorded. This could potentially affect the speed and profitability of their transactions.

Legal implications

Failure to comply with AB-968 can lead to legal disputes and financial penalties. If buyers discover undisclosed work after the purchase, they may have grounds for legal action, including recission of the sale or claims for damages.

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.



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