Understanding California's New "Flipper Law" Effective July 1st, 2024

Understanding California's New "Flipper Law" Effective July 1st, 2024

  • Hamid Koochak
  • 06/28/24

Starting July 1st, 2024, California will enforce the new "Flipper Law" under Assembly Bill 968, now codified as California Civil Code § 1102.6h. This law introduces significant changes to the Real Estate Transfer Disclosure Statement (TDS) and Seller Property Questionnaire (SPQ), impacting the sale of residential properties. Here's what you need to know about this new legislation and how it affects real estate transactions.

What is the Flipper Law?

The Flipper Law mandates that "flippers"—sellers who buy and resell residential properties within a short time frame—must disclose recent repairs and renovations. This law applies specifically to residential properties with 1 to 4 units and is effective for any transaction where the seller accepts an offer on or after July 1st, 2024.

Key Requirements of the Flipper Law

  1. Applicability:

    • The law applies to residential properties with 1 to 4 units.
    • It targets properties that are resold within 18 months of the seller acquiring title.
    • It requires disclosure if the seller contracted with a third-party contractor for renovations or repairs.
  2. Mandatory Disclosures:

    • Recent Repairs and Renovations: Sellers must disclose any recent repairs or renovations conducted on the property.
    • Room Additions and Structural Modifications: Any room additions or structural changes must be disclosed.
    • Permits: Sellers must provide copies of any obtained permits. If the seller did not receive permits from a third-party contractor, they must inform the buyer that permits can be obtained through the contractor and provide the contractor's contact information.
  3. Contractor Information:

    • For repairs and renovations costing $500 or more, sellers must disclose:
      • The name of each contractor involved.
      • The contact information of each contractor, as provided to the seller.
  4. Documentation:

    • It's crucial for sellers to document and retain all modifications made to the property to ensure compliance with the new disclosure requirements.

How Does This Impact You?

If you are a seller planning to flip a residential property, it's essential to understand and comply with these new disclosure requirements. Proper documentation and transparency about recent repairs and renovations will not only keep you in compliance with the law but also build trust with potential buyers.

For buyers, this law provides additional protection by ensuring they are fully informed about the property's history, including any recent improvements or modifications.


The Flipper Law represents a significant step towards greater transparency in real estate transactions, ensuring buyers are well-informed about the properties they are purchasing. Sellers must be diligent in documenting and disclosing any modifications to stay compliant.

If you have any questions about the new Flipper Law or how it affects your real estate transactions, feel free to reach out for more information. 

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Hamid has worked in every aspect of the industry representing sellers, buyers, and investors in the residential market. High ethical standards, hard work, savvy negotiations, and cutting-edge marketing strategies join uncompromising integrity as the hallmark of Hamid's service.

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