A freshly renovated home can look ready for market while its documentation is not. A seller may have new flooring, a rebuilt kitchen, upgraded electrical work and a finished addition, yet still struggle to identify which contractor performed each job or where the permits went. California AB 968 makes that documentation gap particularly important for certain short-term resales of single-family homes.
The law is relevant to house flippers, but it is not limited to people who describe themselves as flippers. What matters is the type of property, when the seller acquired title, when an offer is accepted, and the contractor-performed work covered by the statute. This guide explains the statutory framework, illustrates how to prepare the records, and provides free tools for organizing them. It is educational information, not legal advice.
What is California AB 968?
Assembly Bill 968 added California Civil Code §1102.6h. It requires additional disclosures when a seller of single-family residential property accepts an offer within 18 months after title was transferred to that seller. The section applies to offers accepted on or after July 1, 2024. These disclosures are in addition to other applicable California residential transfer disclosures.
The trigger is the date the offer is accepted, not the listing date or closing date. For example, if title transferred to an investor on January 15 and the investor accepted an offer 17 months later, the timing condition may be met even if the transaction closes after the 18-month anniversary. A seller should confirm exact dates and transaction-specific applicability with the real estate professionals handling the sale.
Watch: California AB 968 renovation disclosures
This short FolioProjects video introduces the documentation problem behind the law and why renovation records matter when a property is sold.
If the video does not display in your browser, watch it directly on YouTube.
Who must pay attention to the 18-month rule?
A useful first step is to separate the legal applicability question from the record-collection task. The additional requirements in §1102.6h concern sellers of single-family residential property meeting the timing test. The statute does not say that only professional investors are covered, and a property owner should not assume the rule disappears simply because the work was intended for personal use.
| Question | What to check | Why it matters |
|---|---|---|
| What property is being sold? | Confirm the property type and applicable disclosure regime. | AB 968 addresses single-family residential property. |
| When did title transfer to this seller? | Use the recorded title transfer date. | Starts the 18-month period. |
| When was the buyer’s offer accepted? | Use the actual acceptance date. | Determines whether the timing condition is met. |
| Was the offer accepted on or after July 1, 2024? | Confirm the transaction date. | The statute applies from this offer-acceptance date. |
| Was contractor-performed work done after acquisition? | Review all contracts and work performed since title transfer. | Identifies work potentially subject to the additional disclosure. |
An 18-month resale is not itself evidence of a problem. The practical issue is whether the seller can describe the covered work accurately and provide the supporting information the law requires. Even where this particular section does not apply, other disclosure duties may still exist.
What renovation work must be disclosed?
Section 1102.6h(a)(1) addresses room additions, structural modifications, other alterations, and repairs made after the seller acquired title when the work was performed by a contractor with whom the seller contracted. It is broader than a list of major renovations. A seller should review contracted repairs as well as visible upgrades rather than limiting the review to work featured in marketing photographs.
A practical renovation register can capture the work area, description, approximate dates, contractor, contract reference, and the location of relevant evidence. Common categories worth reviewing include kitchens and bathrooms, additions, roof or exterior work, plumbing, electrical systems, heating and cooling, structural alterations, and repair projects. These are examples for record collection, not a legal conclusion that every example requires a permit.
The statute also permits the work-disclosure obligation to be satisfied by providing a list of the covered work prepared and supplied by the contractor. That can be helpful, but an owner should check that the list is complete and corresponds to the property and the period in question.
Contractor names, contact information, and the dollar threshold
The law separately addresses the name of each contractor engaged for the covered work and any contact information that contractor provided to the seller. Importantly, the obligation to provide the contractor’s name applies only when the aggregate contract price for the project or undertaking exceeds the amount specified in Business and Professions Code §7027.2. That cross-reference means a permanently printed dollar amount can become outdated.
Do not confuse this name-reporting threshold with a blanket exemption from disclosing the work itself. The text of §1102.6h(a)(1) and (a)(2) addresses different information. When in doubt, retain a complete contractor directory and let the seller’s agent or legal adviser determine what must be included in the formal disclosure package.
The register should record the contractor’s business name, the name appearing on the contract, available phone or email information, the scope, and the aggregate contract price. Store the contract and change orders as supporting evidence. Do not invent missing contact details or treat an internet search result as contact information actually provided by the contractor.
What does AB 968 say about permits?
Under §1102.6h(c)(1), if the seller obtained a permit for covered work, the seller must provide a copy of that permit to the buyer. The statute also provides a specific alternative when the seller contracted with a third party for certain work and was not provided copies of permits obtained: the seller may inform the buyer that permit information can be obtained from that third party and provide the third party’s contact information that was provided to the seller.
This is not a rule that all work is automatically permitted, nor a substitute for confirming whether work required a permit. Permit requirements vary by jurisdiction and scope. A contractor’s statement that a permit was unnecessary is not the same thing as confirmation from the relevant building department. Likewise, a permit number is not necessarily evidence that required final inspections were completed.
A practical permit-record review
| Record | What it helps establish | Follow-up if missing |
|---|---|---|
| Permit application or issued permit | Which work and address were covered. | Check the jurisdiction’s permit records. |
| Approved plans | The scope reviewed by the authority. | Ask the contractor or design professional for copies. |
| Inspection history | Whether inspections were recorded. | Request available inspection records. |
| Final approval or closeout | Whether the permit process was closed. | Confirm status with the authority. |
| Third-party contact information | Who may hold permits not supplied to the seller. | Document the contact information actually provided to the seller. |
Keep unresolved questions visible. A record marked “permit not found” should not be silently converted into “permit not required.” This distinction protects the integrity of the owner’s records and makes discussions with professionals more productive.
Free AB 968 renovation disclosure resources
To make the preparation process easier, FolioProjects provides two complementary downloads. They are organizational resources, not California’s official statutory disclosure forms. Complete the required transaction documents with the appropriate professionals.
1. AB 968 Renovation Disclosure Checklist — PDF
Use the free AB 968 Renovation Disclosure Checklist (PDF) to review the timing test, contractor-performed work, contractor information, permits, missing evidence, and final handoff. It is designed for an owner or project manager who needs a concise list of questions to resolve before the sale.
2. Renovation and Contractor Disclosure Register — Excel
Download the free Renovation and Contractor Disclosure Register (Excel) to maintain separate records of work, contractors, permits, and readiness questions. The workbook includes a start-here sheet, renovation register, contractor directory, permit register, and readiness review. Add rows as needed and link each entry to the location of the underlying evidence.
For example, a kitchen remodel entry might reference a signed contract, change orders, payment invoices, before-and-after photographs, a permit file, and the final inspection record. The workbook does not certify compliance or automatically determine whether a permit was required; it helps make the evidence easier to locate and review.
A realistic house-flip example: beautiful renovation, incomplete file
Consider an illustrative investor who purchases a California single-family home, hires several contractors, completes improvements, and accepts a buyer’s offer 11 months after taking title. The work includes a kitchen renovation, bathroom updates, roof repairs, and a structural opening between two rooms. The listing photographs are strong and the buyer likes the property. The problem emerges when the buyer asks for the renovation history.
The investor has a general contractor’s invoice but cannot readily locate the subcontractor contact information, a roof repair scope, or the structural permit documentation. One contractor has changed businesses. The permit portal shows a record, but the investor has not confirmed whether the inspection was finalized. None of these facts alone determines a legal violation. Together, they create a record-reconstruction problem at the worst possible moment.
A better approach: reconstruct the evidence before listing
First, list every contractor-performed alteration or repair since title transfer. Second, match each item to a contractor and its contract or invoice. Third, record permits obtained by the seller and copies available, while separately investigating other permit questions. Fourth, mark gaps as unresolved rather than filling them with assumptions. Finally, review the completed register with the transaction professionals responsible for the disclosure package.
| Work item | Evidence found | Open question | Next action |
|---|---|---|---|
| Kitchen remodel | Contract, invoices, dated photographs | Contractor contact record incomplete | Review original contract and messages. |
| Bathroom updates | Invoice and scope of work | Permit applicability not confirmed | Ask the relevant authority or qualified professional. |
| Roof repairs | Payment receipt | Detailed work scope missing | Request contractor work summary. |
| Structural opening | Drawings and permit reference | Final inspection status unknown | Check permit and inspection records. |
The goal is not to create a polished story about the renovation. It is to preserve an accurate, verifiable account of what happened, including the parts that still require follow-up.
How to build a reliable renovation record from day one
The least expensive time to capture documentation is while the work is happening. After a contractor has completed a job, moved away, or changed companies, collecting the same information can take much longer. A simple owner-controlled recordkeeping routine can prevent the scramble.
Before work begins
Create a project record tied to the correct property. Save the signed scope, contractor details, quoted price, insurance or license information where relevant, and any drawings or permit applications. Clarify who is responsible for obtaining permits and delivering copies. Use a consistent project identifier so the same work can be traced across contracts, payments, photographs, and correspondence.
During the project
Save change orders, dated site photographs, inspection notices, material substitutions, and significant decisions. Record who approved changes and when. If a contractor says the scope changed or a permit is unnecessary, retain the correspondence and independently confirm issues that require professional or government interpretation.
At completion
Collect final invoices, payment confirmations, warranties, final inspection documentation when applicable, and a concise list of work actually performed. Do not close the project record simply because the contractor has been paid. Make sure the completed scope and the supporting documents agree.
When preparing to sell
Use the renovation register as a starting point, not as the legal disclosure itself. Review dates, work descriptions, contractor-name threshold questions, and permits with your agent or attorney. Maintain a dated copy of the disclosure materials delivered to the buyer. Preserve the underlying evidence for future reference.
Where FolioProjects fits: records that stay with the property
A spreadsheet is useful for assembling a sale package, but a property owner may own the building for years before deciding to sell. Renovation records can be scattered among email attachments, contractor portals, personal drives, and old project folders. A portal may disappear, an employee may leave, or a contractor may stop responding. The owner still needs the property history.
FolioProjects is designed around the owner’s continuing property record. Organize documents under the relevant property and improvement project, preserve the context behind the work, and control what information is shared when another party needs it. The same evidence may later help with insurance questions, capital improvement tracking, maintenance, refinancing, or sale preparation.
You can explore FolioProjects accounts and pricing, review the guide to tracking capital improvements, or use the free Property Sale Preparation Checklist Builder for a broader seller-readiness review. AB 968 is one example of why the owner benefits from retaining an organized history rather than rebuilding it at closing.
Frequently asked questions about California AB 968
Does AB 968 apply only to professional house flippers?
No. The statute is written around qualifying single-family residential sales and the 18-month offer-acceptance test, not whether the seller identifies as a professional flipper. Specific transaction questions should be reviewed with a California real estate professional.
Does the 18-month clock stop when the home is listed or when it closes?
Neither. Section 1102.6h refers to the date the seller accepts an offer, measured from the date title transferred to the seller. Confirm the dates using the transaction documents.
Does AB 968 require every renovation to have a permit?
No. The law establishes additional disclosure obligations. Whether particular work requires a permit is a separate issue governed by applicable building and local rules. Owners should verify the permit status rather than assume a renovation was exempt.
What if a contractor obtained the permit but never sent a copy?
Section 1102.6h(c)(2) provides a specific alternative involving disclosure of the third party as a source for permit information and the contact details that party provided to the seller. The wording and circumstances matter, so ask the transaction professional how to apply it. Do not describe an unknown permit status as approved.
Does the contractor-price threshold eliminate the need to describe smaller jobs?
The statutory threshold is stated for the obligation to provide a contractor’s name. It should not be treated as a blanket exclusion for all contracted alterations or repairs. Keep the complete work register and seek transaction-specific guidance.
Is the FolioProjects Excel workbook an official California disclosure form?
No. The workbook and PDF are free organizational aids. They do not replace California’s required transfer disclosure documents, professional inspection, legal advice, or any applicable local requirements.
The Owner’s Takeaway
A finished renovation is not the same as a complete property record. California AB 968 gives certain short-term sellers another reason to retain contractor information, work descriptions, and permits. But the benefit of organizing those records begins long before a sale. Start with the free checklist, build your renovation register, and keep the supporting documents attached to the property and project they belong to.
Legal references and further reading
- California Civil Code §1102.6h — additional disclosures for certain short-term sales of single-family residential property.
- California Business and Professions Code §7027.2 — the provision cross-referenced for the contractor-name threshold.
- California Department of Real Estate, Real Estate Law excerpts — includes §1102.6h.
Educational disclaimer: This article and the downloadable resources are general information, not legal, tax, construction, or real estate brokerage advice. Statutes and local requirements can change. Confirm current law and the disclosure requirements for your transaction with qualified California professionals.
