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Navigating the New Property "Flipping" Disclosures Going Into Effect in California on July 1, 2024

Updated: Apr 25


In the ever-evolving landscape of California real estate, staying informed about legislative changes is paramount. A significant development has emerged for individuals involved in "flipping" – the process of buying, renovating, and reselling residential properties. This blog post, presented by the Law Office of Jack Kakoian, offers a comprehensive overview of the newly enacted Civil Code section 1102.6h, detailing its implications, requirements, and effective date. Whether you are a seasoned flipper or considering your first project, understanding these changes is crucial for compliance and success in California's dynamic real estate market.

Understanding the Scope of Article 1.5:

Article 1.5 of the California Civil Code plays a central role in real estate transactions, specifically addressing the sale, exchange, or transfer of single-family residential properties. It encompasses various agreements, including sales contracts, leases with options to purchase, and other purchase options. The introduction of section 1102.6h further refines the legal framework, ensuring transparency and accountability in property flipping transactions.

Key Provisions of Civil Code Section 1102.6h:

Effective from July 1, 2024, for transactions where the seller accepts an offer on or after this date, section 1102.6h introduces specific obligations for flippers of residential properties with 1 to 4 units. The law targets properties resold within 18 months of acquisition, aligning with the typical flipping timeline, often ranging up to 12 months. Here's what flippers need to know:

  1. Disclosure of Repairs and Renovations:

  • Flippers must disclose any recent repairs, renovations, or improvements made to the property. This requirement is in addition to existing disclosure obligations, ensuring buyers are fully aware of the property's condition and history.

  1. Contractor Involvement:

  • The disclosure requirements apply when renovations or repairs are conducted by a licensed contractor under a formal contract with the seller/flipper.

  1. Continuity of Existing Disclosure Rules:

  • The standard transfer disclosure statement categories, exemptions, and cancellation rights remain in effect, maintaining consistency in the transaction process.

  1. Detailed Disclosure Requirements:

  • Sellers/flippers must disclose specific details about the property, including room additions, structural modifications, and other alterations. The disclosure should also include a copy of any permits obtained or, alternatively, a list provided by the contractor.

  1. Permit Transparency:

  • If the seller/flipper does not possess copies of the permits, they must guide the buyer on how to obtain them through the third party involved and provide the necessary contact information.

  1. Contractor Information Disclosure:

  • For projects with an aggregate contract price of $500 or more, the seller/flipper must disclose the name and contact information of each contractor involved in the project.

Navigating Compliance and Ensuring Transparency:

The introduction of Civil Code section 1102.6h reflects a commitment to enhancing transparency and protecting buyers in the real estate flipping market. As a seller/flipper, integrating these disclosure requirements into your transaction checklist will not only ensure compliance but also foster trust with potential buyers. It's essential to consult with a knowledgeable real estate attorney to navigate these changes effectively and align your practices with the new legal standards.


The Law Office of Jack Kakoian remains at the forefront of real estate legal expertise, guiding clients through the intricacies of California's real estate laws. With the enactment of Civil Code section 1102.6h, we are dedicated to providing our clients with the insights and support needed to navigate these changes confidently. For personalized advice and to ensure your flipping ventures comply with the latest legal requirements, contact our office today. Stay informed, stay compliant, and thrive in California's vibrant real estate market.

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