What California's New "Flipper Disclosure" Law Means for Sellers Who Haven't Owned Their Home Long
It happens more often than people think. Someone buys a home, puts real work into it, and then life changes and they end up selling sooner than they expected. A job relocation, a growing family, a shift in the market. If that describes you and you've owned your home for less than 18 months, California now has a specific disclosure law you need to know about before you list.
What Is the 18 Month Disclosure Law?
It is officially AB 968, and it took effect on July 1, 2024. Under this law, when a seller enters into a contract to sell a single family home they have owned for less than 18 months, they are required to disclose detailed information about any work completed on the property during that time. The law was written to protect buyers from purchasing a recently renovated home without knowing what was actually done to it or whether it was done properly.
What Sellers Are Required to Disclose
There are three main pieces to this.
First, any room additions, structural modifications, alterations, or repairs made to the property since you took title. This applies to anything done after you bought the home, not just major renovations.
Second, permits. You are required to provide copies of any permits obtained, or make them available to the buyer, including permits pulled by a third party on your behalf.
Third, contractor information. You must provide the names and contact information for any contractor whose labor and materials exceeded the threshold set under Section 7027.2 of the California Business and Professions Code. That figure has changed over the years depending on the version of the code you are looking at, so I would not quote a specific dollar amount without verifying the current threshold directly, and I recommend your agent or attorney do the same before you rely on it.
Why This Matters More Than Most Sellers Realize
This is not just a box to check. Missing or unclear documentation tends to slow buyers down. They ask more questions, they hesitate, and in some cases they use it as a point of negotiation. A well documented set of improvements builds buyer confidence. A gap in that documentation tends to create the opposite.
What Buyers Should Know Too
If you buy a home with unpermitted work on it, that issue does not go away just because you did not do the work yourself. When you eventually become the seller, the responsibility to disclose it becomes yours. You will need to disclose the lack of permits, explain what was done and when if you know, and understand that future buyers may raise the same concerns you are weighing right now. It is worth thinking about this at the time you buy, not just when you eventually sell.
What I Am Seeing in the Tri-Valley
Here in Pleasanton, Dublin, Livermore, and San Ramon, I am seeing more properties come to market with recent updates, and buyers are paying closer attention to whether permits were pulled, who did the work, and how recently it was completed.
In Livermore specifically, every active listing is required to include a City of Livermore report, which provides a historical record of all permits pulled on that property. It gives buyers an added layer of transparency when they are evaluating past work, and it is worth reviewing closely if you are buying in Livermore.
A Few Practical Steps
Whether you are buying or selling, a few things go a long way. Ask for documentation on any recent work early in the process. Read your disclosures carefully rather than skimming them. Verify permits when you can, either through the city or through your agent. And if you are the one selling, understand ahead of time what you may be required to disclose so there are no surprises once you are in escrow.
FREQUENTLY ASKED QUESTIONS
Does the 18 month disclosure law apply to me if I did the work myself?
The law is focused on work completed by a contractor. If you are unsure whether your situation falls under this requirement, it is worth confirming with your agent or a real estate attorney before you list.
What if I do not have copies of the permits?
You are still required to make them available to the buyer, which may mean requesting copies from the city or from the contractor who pulled them. Start this process early since it can take time.
Does this law apply to all types of homes?
It applies specifically to single family residential properties. Other property types may fall under different disclosure requirements.
What happens if I do not disclose required information?
Failing to disclose required information can expose a seller to liability after the sale. This is one of the reasons I encourage sellers to gather this documentation well before listing rather than scrambling once an offer comes in.
How does this affect buyers in the Tri-Valley specifically?
It gives buyers another layer of protection when purchasing a recently updated home, and in Livermore, the required city permit report adds even more transparency to that process.
Have questions about how this law could affect your upcoming sale, or want help reviewing permits and disclosures on a property you're considering? Let's talk.
Sources: California AB 968 (2023-2024), California Civil Code Section 1102.6h, California Business and Professions Code Section 7027.2, City of Livermore
Patty Recupero
REALTOR® | ELATION REAL ESTATE | CA DRE 02112275