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Assembly Bill 968 (AB-968), also known as the Disclosure Requirements for Residential Flippers, will take effect on July 1, 2024, and will require sellers to disclose repairs and renovations made to properties they flip within 18 months of acquiring them. This bill aims to increase transparency and protect buyers by ensuring they are informed about significant modifications or repairs made to the property.

Key Provisions of AB 968
Before delving into the specifics of AB 968, it’s essential to understand the current requirements. Existing law mandates that sellers disclose certain information during the transfer of any single-family residential property. Since July 1, 2022, sellers must include a notice in the sales contract stating that any property appraisal must be unbiased and free from improper or illegal influences.

New Requirements Effective July 1, 2024

AB 968 introduces several new requirements for sellers who accept an offer within 18 months of acquiring the property:

  1. Disclosure of Modifications:
    • Sellers must disclose any room additions, structural modifications, or other alterations made since they acquired the property.
    • These disclosures apply only if the modifications were performed by a contractor.
  2. Contractor Information:
    • Sellers must provide the name and contact information of each contractor involved in the modifications.
    • This obligation applies to contracts exceeding the dollar amount of $500.00, specified in Section 7027.2 of the Business and Professions Code.
  3. Permits:
    • Sellers must provide copies of any permits obtained for the modifications.
    • If the seller did not receive the permits from a third-party contractor, they must inform the buyer where to obtain them and provide the third party’s contact information.

AB 968’s primary goal is to enhance transparency in real estate transactions. Buyers understand the property’s history and condition more clearly by requiring detailed disclosures about significant property modifications and the contractors involved.

This bill protects buyers from unexpected issues related to recent modifications. Knowing the contractors involved and having access to permit information allows buyers to verify the quality and legality of the work performed.

Minimizing Disputes

By setting clear disclosure requirements, AB 968 helps minimize potential disputes between buyers and sellers. Comprehensive disclosure reduces the likelihood of buyers discovering undisclosed issues after the sale, leading to smoother transactions and increased buyer confidence.


AB 968 represents a significant step towards greater transparency and protection in California’s real estate market. By understanding and complying with these new requirements, sellers can ensure a more informed and confident buyer base, ultimately contributing to a healthier market environment.


  1. – AB 968: Single-family residential property: disclosures
  2. – AB 968: Single-family residential property: disclosures
  3. – Important Legislation Effective 2024
  4. – Bill Text: CA AB968 | 2023-2024 | Regular Session | Amended


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