Home flipping has long been a popular real estate investment strategy in California, with average gross profits on flipped homes reaching $73,500 in 2024 (ATTOM Data Solutions). But as of July 1, 2024, a new California law—AB 968, codified as Civil Code § 1102.6h—significantly changes the disclosure obligations for certain sellers. Known as the California Flipper Law, it aims to increase transparency and protect homebuyers from hidden defects in recently renovated properties.
Here’s what real estate investors, sellers, and buyers need to know about this new law.
What Is the California Flipper Law?
Effective July 1, 2024, Civil Code § 1102.6h applies to sellers who:
- Sell a residential property with one to four units
- Accept an offer to purchase within 18 months of acquiring title
If these …
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