AB 968 Flip Disclosure: What California Sellers Must Know If You've Owned the Home Less Than 18 Months

By Jason Franklin | October 23, 2026

If you bought a home in the West San Fernando Valley in the last year or two, renovated it, and are now thinking about listing — you need to know about AB 968 before you do anything else.

This California law, which took effect January 1, 2024, created a new category of mandatory seller disclosure that catches a lot of sellers off guard. It's not just for professional house flippers. It applies to anyone who buys and resells a home within 18 months — whether that's an investor who remodeled a Woodland Hills bungalow, a homeowner who upgraded a West Hills property before moving up, or an LLC that acquired a Tarzana value-add and completed a full renovation.

Getting it wrong doesn't just create friction in escrow. It can expose you to a rescission lawsuit — and blow up an otherwise clean transaction.

Here's what the law requires and what to do before you list.

What AB 968 Actually Requires

California's AB 968 (Assembly Bill 968, codified in Civil Code §1102.6g) added a specific disclosure requirement for residential properties resold within 18 months of the seller's acquisition. The law defines these as "flipped" properties — even if you never thought of your sale as a flip.

If you're selling within the 18-month window, you must disclose in writing:

• All repairs, additions, and alterations made to the property during your ownership
• The name and contact information of each contractor or person who performed the work
• Whether the work was done with permits
• The cost of the work

This disclosure goes on a specific C.A.R. form that your agent will include in the transaction package alongside your Transfer Disclosure Statement (TDS) and Seller Property Questionnaire (SPQ). Every contractor who performed work on the property must also provide a written acknowledgment — confirming what work they did and under what conditions.

That contractor acknowledgment piece is where sellers often run into trouble. If you hired a contractor who's since dissolved the business, paid someone without documentation, or worked with multiple unlicensed subs, assembling the required disclosures takes real effort. It's much better to start now than after you're already in contract.

How the 18-Month Clock Works

The clock starts on the date you acquired the property — not when you began renovations, not when you pulled permits, and not when you went on the market. If you closed on a West Hills home on June 1, 2025, any resale before December 1, 2026, triggers AB 968 requirements.

This catches sellers who never intended to flip. Maybe you bought planning to move in, but a job relocation changed that. Or you're an investor who expected to rent and decided the numbers made more sense as a sale. Intent doesn't determine your obligation — only the timeline does.

A few situations where AB 968 typically does not apply:

• You acquired the property through inheritance or trust distribution following a death
• The property was transferred in a foreclosure, bankruptcy, or similar involuntary process
• The transfer was between family members via gift deed or similar mechanism
• The seller is the original builder/developer (new construction has separate disclosure frameworks)

These situations still carry their own disclosure obligations — they just don't trigger the AB 968 flip disclosure specifically. If your acquisition was anything other than a standard arms-length purchase, confirm the exception applies before assuming you're off the hook.

What to Gather Before You List

If you're selling within the 18-month window, start pulling this documentation now — ideally before you sign a listing agreement:

1. A complete list of every repair and improvement made during your ownership. This includes new flooring, roof work, kitchen or bath renovations, HVAC replacements, electrical panel upgrades, plumbing repairs, windows, painting, and landscaping.
2. Contractor names, license numbers, and contact information. California-licensed contractors carry a CSLB (Contractors State License Board) license number, which you can verify at cslb.ca.gov. Unlicensed workers still need to be identified by name and contact info.
3. Permit documentation. For any work that required a permit, pull the permit history. Your agent can check the LA County Building and Safety portal or LADBS for permit records tied to your property's address.
4. Cost documentation. Invoices, receipts, or at minimum a written cost estimate for each scope of work. If you're missing paperwork, do your best to reconstruct costs from bank records or contractor communications.
5. Warranty documentation. Appliance warranties, roofing warranties, and similar transferable warranties that will convey to the buyer.

You don't need to have everything perfect on day one, but you need to disclose what you know. California's disclosure standard is actual knowledge — if you were aware of a repair and didn't disclose it, that's a problem. What you genuinely didn't know about is generally not your obligation to discover.

That said, if a competent visual inspection would have revealed an issue, courts have generally held that sellers can't claim ignorance. Your best protection is a complete, well-documented package.

Why This Is Especially Relevant in the West Valley Right Now

The West San Fernando Valley has one of the most active value-add and fix-and-flip markets in the greater Los Angeles area. Woodland Hills, West Hills, Chatsworth, Tarzana, and Northridge have attracted significant investor attention — cosmetic renovations, kitchen and bath upgrades, ADU additions, and full remodels that generate real returns in the $1M–$2.5M price range.

That activity means a lot of properties are in the 18-month window right now. Investors who acquired West Valley homes in 2025 are approaching or past the point of typical hold time, and many are evaluating whether to sell, rent, or reposition.

I work with a number of value-add sellers in this market. The ones who get ahead of their AB 968 documentation — pulling contractor contacts, organizing permits, building a clean disclosure package — move through escrow faster and negotiate from a stronger position. Buyers' agents know what to look for, and a transparent, complete disclosure package signals a seller who knows what they're doing.

The ones who scramble to track down a tile subcontractor three weeks into escrow add delay, uncertainty, and leverage to the other side of the table.

AB 968 and Unpermitted Work

One issue that comes up regularly in West Valley flip transactions: work done without permits. AB 968 doesn't excuse unpermitted additions — you still have to disclose them. And unpermitted work discovered during the buyer's inspection period creates a separate liability under California's TDS requirements.

If your property has unpermitted additions — a garage conversion, room addition, or ADU-style unit built without permits — that conversation involves more than just the AB 968 form. The options include disclosing as-is with an appropriate price adjustment, pursuing a retroactive permit through LADBS, or removing the unpermitted work. There's a detailed breakdown of how this plays out in Selling a House with Unpermitted Work in California if you want to understand the tradeoffs first.

What Happens If You Don't Comply

Non-disclosure under AB 968 gives the buyer grounds to seek rescission — meaning they can attempt to unwind the transaction after close — or sue for damages. California courts have consistently interpreted real estate disclosure statutes broadly, and the three-year statute of limitations means a buyer can come back well after the sale.

There's also a practical transaction risk: if a buyer's agent spots missing documentation during their review, it can trigger renegotiation demands, extension requests, or outright cancellation within the inspection contingency period.

The upside of proper disclosure is real. A complete AB 968 package — with organized contractor info, permit records, and cost documentation — actually reduces friction. It gives buyers confidence and leaves less room for post-inspection surprises. Buyers who understand exactly what was done to a renovated home are generally more willing to move forward at the agreed price.

If you're currently in the SFV market and want to understand how your specific renovation scope interacts with your disclosure obligations, that's exactly the kind of pre-listing conversation worth having before you sign anything. Reach out anytime through jasonfranklinre.com.

Frequently Asked Questions

Does AB 968 apply if I'm an LLC or corporation selling the property?

Yes. AB 968 applies to any seller — individual, LLC, trust, or corporation — who resells a 1–4 unit residential property within 18 months of acquisition. The law does not distinguish between individual and entity sellers. If your investment entity purchased and is now reselling within that window, the disclosure requirement applies.

What if the contractor I used for renovations is no longer in business?

You must make a good-faith effort to provide the required contractor information. If a contractor is no longer reachable, document your attempt and include whatever information you have — company name, type of work performed, approximate date, and estimated cost. Your real estate agent and transaction attorney can help you structure this disclosure appropriately.

Do I have to disclose cosmetic upgrades like new paint, flooring, or fixtures?

Yes. AB 968 covers all repairs, additions, and alterations — including cosmetic work such as paint, flooring, countertops, lighting, and fixtures. The law is intentionally broad to give buyers a complete picture of what changed while the seller owned the property. When in doubt, disclose it.

If my renovation work was fully permitted, do I still need to provide the AB 968 disclosure?

Yes. Permit records are helpful supporting documentation and strengthen your disclosure package, but they don't replace the AB 968 form itself. You still need to identify the work performed, who did it, permit status, and cost — regardless of whether permits were obtained.

Does AB 968 apply to a property I inherited and am now selling?

Generally no. If you acquired the property through inheritance, trust distribution following a death, foreclosure, or other involuntary transfer, AB 968 typically does not apply. However, the sale will still trigger other California disclosure requirements. Confirm your specific situation with your agent or a real estate attorney before listing.

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AB 968 is a real compliance requirement — not a technicality you can skip if you're in the 18-month window. Getting your disclosure package right matters both legally and practically, and the time to start is before you list, not after you're already in escrow.

I've helped investors and homeowners navigate flip transactions throughout Woodland Hills, West Hills, Tarzana, and the broader West Valley. If you're not sure whether your timeline triggers the AB 968 requirement, or you want a clear picture of your disclosure obligations before you make a decision about selling, let's talk.

Reach out anytime at jasonfranklinre.com.