New Home Flipping Disclosure Requirements

By G. David Lapin On January 10 2024

New Home Flipping Disclosure Requirements in California

HOME FLIPPING DISCLOSURE REQUIREMENTS: Recognizing concerns about misinformation in home purchases involving flipped properties, the Assembly took action by passing AB 968. This legislation mandates additional disclosures, supplementing the existing requirements applicable to all property sales.

These new regulations pertain to residential units numbering from 1 to 4, specifically when a resale offer is received 18 months post-purchase. The disclosed information encompasses details on room additions, structural modifications, repairs, and any permits acquired during the property's ownership.

Scheduled to take effect on July 1, 2024, these regulations will be implemented through the Transfer Disclosure Statement (TDS). Notably, if expenditures exceeding $500.00 were incurred, the buyer must be provided with the names and contact information of all contractors involved.

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