California’s New Law Targets Flipping Homes: What Sellers Need to Know

California’s New Law Targets Flipping Homes: What Sellers Need to Know

California has introduced a significant legal change, Assembly Bill 968 (AB 968), specifically aimed at sellers engaged in flipping homes. Enacted during the 2023-2024 legislative session, AB 968 addresses the practice of buying, renovating, and quickly reselling properties. Here’s a concise overview of the key aspects:

1. Enhanced Disclosures: 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[1][3].
2. Timeframe Consideration: 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, ensuring transparency in real estate transactions[4].
3. Legislative Intent: AB 968 aims to provide homebuyers with comprehensive information about the property’s recent history, allowing them to make informed decisions. This legislative change reflects California’s commitment to consumer protection in the real estate market.
4. Effective Date: Sellers should be aware that the law became effective for transactions where the seller accepts an offer on or after July 1, 2024[6].

As the curtain rises on this transformative legislation, California’s real estate market braces for a paradigm shift. These additions aren’t just legal nuances; they are a commitment to transparency. Come July 1, 2024 sellers, involved in flipping homes, will have to navigate a new landscape, adhering to the stringent disclosure requirements. Buyers, armed with comprehensive property information, will shape the future of real estate transactions, marking a milestone in California’s real estate evolution. This new legislation emphasizes transparency and consumer empowerment in the dynamic real estate market.

🌐 Sources

1. legiscan.com – Bill Text: CA AB968 | 2023-2024 | Regular Session
2. clta.org – New Property Disclosures Proposed for Recent Renovations
3. legiscan.com – Bill Text: CA AB968 | 2023-2024 | Regular Session
4. almanacnews.com – Six new laws impacting housing in 2024 that you should know about
5. fastdemocracy.com – Bill tracking in California – AB 968 (2023-2024 legislative session)
6. pluralpolicy.com – AB 968 – California (20232024)