Thinking About Flipping a Home or Buying One?

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

Flippers are obligated to disclosure room additions, structural modifications, other alterations or repairs, and copies of any permits obtained or contact information for a third party that obtained the permits. Additionally, where the cost of labor and materials was $500 or greater, the seller must disclose the name and contact of each contractor that had worked on the property.

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.

So if you're thinking about flipping your first home, make sure you follow AB-968 guidelines. If you are a home buyer who runs across a flipped home, know your rights and ask for transparency!