Disclosure Requirements for Residential Flippers: Understanding AB-968

By Roy J. Jimenez, Esq.


A man in a suit and tie standing with his hands in his pockets.
Roy J. Jimenez

Assembly Bill No. 968 (AB-968), effective July 1, 2024, marks a significant shift in the landscape of real estate transactions, particularly affecting residential flippers. This legislation mandates comprehensive disclosure of repairs and renovations by sellers who flip properties within 18 months of acquisition. The intent is to ensure transparency and protect buyers from undisclosed property conditions.

Key Provisions of AB-968

AB-968 requires sellers of single-family residential properties to disclose, among other things, any room additions, structural modifications, and other alterations or repairs made since acquiring the property. This disclosure must include the name of each contractor involved and a copy of any related permits. If permits are unavailable, the seller must guide the buyer on how to obtain them from relevant third parties.

Impact on Residential Flippers

For residential flippers, this law introduces additional due diligence and documentation responsibilities. They must now meticulously track and report all property changes, including minor repairs, ensuring that all work is properly permitted and recorded. This adds a layer of complexity to the flipping process, potentially affecting the speed and profitability of these transactions.

Legal Implications and Compliance

Failing to comply with AB-968 can lead to legal disputes and financial penalties. Buyers who discover undisclosed work post-purchase may have grounds for legal action, including rescission of the sale or claims for damages. Therefore, it is imperative for sellers to understand and adhere to these new requirements fully.

Why Legal Counsel is Necessary

Navigating AB-968’s intricacies requires specialized knowledge. Real estate litigation attorneys can provide invaluable guidance, ensuring compliance and mitigating legal risks. They can assist in preparing the required disclosures, verifying permit statuses, and addressing any disputes that arise. The goal is to avoid litigation so consulting with an attorney before a dispute rises is key.


AB-968 significantly affects the dynamics of residential flipping by enforcing stringent disclosure requirements. Flippers need to be proactive in understanding and integrating these obligations into their business models to avoid legal pitfalls. Seeking legal counsel is not just advisable but essential in adapting to these changes and safeguarding against potential legal challenges. Contact Mr. Jimenez at for more information and guidance on how to stay in compliance.

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