AB 968: California's Seller Disclosure Rule Explained for LA

What Does California's AB 968 Require Sellers to Disclose?

Under California's AB 968 (Civil Code §1102.6h), sellers who have owned a property for less than 18 months must disclose all contractor work performed during their ownership, including contractor names and contact information, permits obtained, and instructions for accessing those permits. The law applies to any work costing $500 or more and has been in effect since July 1, 2024. Non-disclosure gives the buyer grounds for rescission of the contract and damages.

By Paul Blair | September 23, 2026

If you bought an LA home in 2024 or early 2025 and you're listing it now, California Assembly Bill 968 applies to your sale. Full stop.

Most sellers who've heard of AB 968 assume it's a flipper law. It is, in part. But the law doesn't ask why you're selling quickly or what your intentions were when you bought. It asks one question: have you owned this property for less than 18 months? If yes, the additional disclosure requirements kick in.

Here's what that means for you.

The 18-Month Trigger

AB 968 amended Civil Code §1102.6h and went into effect July 1, 2024. It applies to sellers of single-family residential properties who are selling within 18 months of acquiring the property.

"Acquiring" means the date you took title. If you closed on a purchase in January 2025 and list in August 2026, you're outside the window. If you closed in March 2025 and list in June 2026, you're inside it. The distinction matters because the disclosure package you're required to provide changes substantially once you cross that threshold.

What You Have to Disclose

Under AB 968, if you've owned the property less than 18 months, you must disclose:

• Every contractor who performed work on the property during your ownership, along with their name and contact information
• Whether permits were obtained, and if so, how the buyer can access copies (or attach copies directly to the disclosure)
• The contractor's license number, when available

This applies to any work costing $500 or more.

This goes beyond what the standard Transfer Disclosure Statement (TDS) and Seller Property Questionnaire (SPQ) require. Those forms ask you to disclose known material defects and work that affects the property's condition. AB 968 requires you to document the work itself, who performed it, and whether it was permitted.

The California Association of Realtors added an AB 968 disclosure addendum after the law took effect. Your agent will include it in the disclosure package, but the information has to come from you.

Why Regular LA Homeowners Get Caught

The situations that trigger AB 968 for non-flippers are more common than you'd think, especially in a market like Los Angeles.

Job relocation. A buyer closes on a Silver Lake bungalow in late 2024, updates the kitchen and bathrooms, and gets transferred to New York 14 months later. They're inside the 18-month window, and every contractor who touched that renovation needs to be documented and disclosed.

Estate situations. If someone passes away and heirs sell a property that was recently renovated, AB 968 may apply depending on how title was held and when the heirs formally acquired it.

Divorce. A couple buys a home together, renovates substantially, and separates. If a court order or marital settlement transfers the property from one spouse to the other, and that spouse sells within 18 months of taking sole title, the clock may have started fresh. The overlap with California's community property rules and disclosure requirements is worth understanding before you list.

Unexpected life changes. You bought a Hollywood Hills home with long-term plans, did meaningful work on it, and now need to sell before 18 months have passed. The law applies regardless of the reason you're selling.

The common thread: AB 968 doesn't care about intent. It cares about timeline.

The Exposure If You Don't Comply

Non-compliance with AB 968 gives the buyer grounds for rescission of the contract and potential damages. Rescission means the buyer can attempt to unwind the transaction after closing, return the property, and recover what they paid, along with costs they incurred during the process.

For a $4 million property in Los Feliz or a $9 million estate in Bel Air, that's an exposure that dwarfs the cost of proper documentation. A post-close rescission claim based on undisclosed contractor work creates legal and financial consequences that ripple well past the original transaction.

The disclosure can't be corrected after closing. If you failed to document contractor work and the buyer discovers it later, you've handed them a legal basis that survives the sale.

Getting It Right Before You List

Building a proper AB 968 disclosure package requires some organization before your listing goes live. Here's what to pull together:

• Invoices and contracts from every contractor who performed work during your ownership
• Names, license numbers, and contact information for those contractors
• Permit documentation from the Los Angeles Department of Building and Safety (LADBS) or the relevant permitting authority in your city (Beverly Hills, Santa Monica, and other incorporated cities have their own departments)
• Written records of any work you self-performed and its cost, if applicable

If permits were pulled, they're public record. You can look them up through the LADBS permit portal. If a contractor told you they'd "handle the permits" but you never saw confirmation, check now. Better to find out during the listing prep stage than during the buyer's contingency period.

A lot of sellers in the luxury market work with multiple contractors simultaneously during a renovation. If that describes your situation, the disclosure list can get long. That's fine. A complete disclosure is protection. A missing one is liability.

AB 968 adds to an already substantial disclosure stack for LA sellers. If your home has an HOA, you're also managing the disclosure package requirements under California Civil Code section 4525, which expanded in 2026 to include the SB 326 balcony inspection report for condos. Getting organized before you list prevents surprises during escrow.

What Buyers' Agents Are Looking For

Experienced buyer's agents in LA now specifically ask about AB 968 compliance during due diligence on any property where the seller's ownership period looks short. The MLS listing history and public records make it easy to check.

If the listing shows a purchase date from 2024 or early 2025 and there's no AB 968 addendum in the disclosure package, that's a flag. A well-represented buyer will request the addendum and, if it's missing, use the gap during contingency negotiations.

The cleanest way to avoid that scenario is to document the work correctly before you list.

Frequently Asked Questions

Does AB 968 apply if I inherited the property?

It depends on how and when you acquired title. If a property passed to you through a trust, probate, or direct transfer, and you are now selling within 18 months of that acquisition, AB 968 may apply. The trigger is the date you took title, not when the original owner purchased the home. Talk to your attorney and listing agent to confirm your specific situation before you list.

What if I did the renovation work myself?

AB 968 covers contractor work, but your TDS and SPQ still require you to disclose material facts about the property's condition, including work you performed yourself. If you pulled permits for the work, document those. If you didn't pull permits for work that required them under the Los Angeles Municipal Code, that's a separate disclosure concern your agent can help you navigate.

Does AB 968 apply to condos and townhomes?

AB 968 was written primarily for single-family residential properties. Condos and townhomes involve a mix of individually owned and common-area components, and the disclosure obligations for work on common elements often run through the HOA, not the individual seller. If you performed work inside your unit, the standard disclosure requirements still apply. Confirm your situation with your agent.

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

Provide as much documentation as you have: the contractor's name, any license number, invoices, and any correspondence. If the contractor was licensed at the time, that information is searchable through the California Contractors State License Board (CSLB) even if they've since closed. The goal is a good-faith documented effort, not a guarantee that every contractor is still reachable.

How does a buyer's agent verify AB 968 compliance?

They check the permit history through LADBS (or the relevant city department), review the CAR disclosure addendum in the package, and cross-reference the disclosed contractor work against what the permit record shows. If the permit pulls match the renovation scope described in the disclosure, the package holds up. Missing permits for significant work become a due diligence conversation.

Selling within 18 months of buying in California is legal. The law just requires you to be thorough about what you disclose. Getting it right before you list means you're not managing contingency issues or post-close claims in a market where the stakes are already high.

If you're preparing to sell an LA property and want to make sure your disclosure package is complete, I'm happy to walk you through what applies to your situation and connect you with attorneys who've worked through AB 968 compliance before.

Check your home's value at greysq.com/home-value or reach out directly to talk through your timeline.

About Paul Blair

Paul Blair is the founder and broker of Grey Square, a virtual real estate brokerage representing buyers and sellers across Dallas and Los Angeles. With 22 years in the business and more than $200 million in closed transactions, Paul works the full range of the market, from luxury homes in the Park Cities and Preston Hollow to estates in the Hollywood Hills and across the Westside. Connect with Paul and the Grey Square team at greysq.com. TX TREC #9011505 · CA DRE #01792671.