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Selling a Home in San Diego? AB 968 – Get Ready to Reveal Your Renovations

New California AB 968 Law Requires Disclosure of Major Repairs

Attention, San Diego home buyers, sellers, flippers, and HGTV warriors! A new law is taking effect on July 1st that could significantly impact your real estate transactions. Known as AB 968, the law mandates sellers to disclose major repairs and improvements made to a property within 18 months of its sale.

Here’s a breakdown of the key takeaways:

Sellers Must Disclose Repairs and Improvements: If you’ve owned a home for less than 18 months and made repairs or improvements, you’ll need to provide a detailed report to the buyer. This includes:
- A list of all repairs and improvements
- Names and contact information of all contractors involved
- Copies of permits obtained, if applicable
$500 Repair Threshold: Repairs under $500 are exempt from disclosure.
Protecting Buyers from Shoddy Work: The primary goal of AB 968 is to safeguard buyers from purchasing homes with subpar renovations that could lead to costly problems down the line.
Potential Impact on Home Flipping: While the law primarily targets home flippers who often purchase homes off-market and make quick, cosmetic fixes to properties, it could also add a layer of complexity to traditional home sales.

Stay Informed and Prepared:

The road to good intentions often intersects with the complex junction of reality. We can see this getting complicated…

As a San Diego Real Estate brokerage who often works with developers and investors, we’ll continue to track the implementation of AB 968 and provide updates on its impact in the San Diego market.

Whether you’re buying or selling a home in San Diego, it’s crucial to stay informed about these legal changes to ensure a smooth and transparent transaction.

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