California 2023 2023-2024 Regular Session

California Assembly Bill AB968 Amended / Bill

Filed 03/29/2023

                    Amended IN  Assembly  March 29, 2023 Amended IN  Assembly  March 20, 2023 Amended IN  Assembly  March 02, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 968Introduced by Assembly Member GraysonFebruary 14, 2023An act to add Section 1102.6h to the Civil Code, relating to real property. LEGISLATIVE COUNSEL'S DIGESTAB 968, as amended, Grayson. Single-family residential property: disclosures.Existing law requires that specified disclosures be made upon any transfer by sale, exchange, real property sales contract, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements, of any single-family residential property. Existing law, after July 1, 2022, requires that every contract for the sale of single-family residential real property contain a notice stating that any appraisal of the property is required to be unbiased, objective, and not influenced by improper or illegal considerations.This bill would require a seller of a single-family residential property who sells that single-family residential property to a buyer within 18 months of purchasing that single-family residential property to disclose to the buyer specified information, including any room additions, structural modifications, other alterations, or repairs made to the property since the seller purchased the property that were performed by a licensed contractor and the name of each licensed contractor with whom the seller entered into a contract with for the room additions, structural modifications, other alterations, or repairs, as specified. The bill would alternatively authorize a seller to satisfy these obligations by providing a list of room additions, structural modifications, other alterations, or repairs performed by, and provided by, the licensed contractor with whom the seller contracted for the room additions, structural modifications, other alterations, or repairs. The bill would require the seller or licensed contractor to provide a copy of any permit for any room additions, structural modifications, other alterations, or repairs to the buyer, as specified. buyer or, if the seller contracted with a third party and was not provided with a copy of the permits, by informing the buyer that information on permits may be obtained from a third party and providing the third partys contact information. The bill would specify that these provisions apply to the sale of a single-family residential property where the seller and buyer enter into a contract or agreement for the property on or after July 1, 2024.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NO  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 1102.6h is added to the Civil Code, to read:1102.6h. (a) A seller of a single-family residential property who sells that single-family residential property to a buyer within 18 months of purchasing that single-family residential property shall disclose, in addition to any other disclosure required pursuant to this article, to the buyer both of the following:(1) Any room additions, structural modifications, other alterations, or repairs made to the property since the seller purchased the property that were performed by a licensed contractor with whom the seller entered into a contract.(2) The name of each licensed contractor with whom the seller entered into a contract with for the room additions, structural modifications, other alterations, or repairs disclosed in paragraph (1) and any contact information for the licensed contractor provided by the licensed contractor to the seller. The obligation to provide the name of the licensed contractor shall only apply to contracts where the aggregate contract price for labor, material, and all other items for the project or undertaking is in excess of the dollar amount specified in Section 7027.2 of the Business and Professions Code.(b) The sellers obligation to disclose the room additions, structural modifications, other alterations, or repairs made to the property performed by a licensed contractor may also be satisfied by providing a list of room additions, structural modifications, other alterations, or repairs performed by, and provided by, the licensed contractor with whom the seller contracted for the room additions, structural modifications, other alterations, or repairs.(c) (1) If the seller or licensed contractor obtained a permit for any room additions, structural modifications, other alterations, or repairs provided to the buyer pursuant to subdivision (a), the seller or licensed contractor shall provide a copy of the permit to the buyer.(2) If the seller does not have a copy of the permit obtained for the room additions, structural modifications, other alterations, or repairs, or is unaware of whether or not permits were obtained by the licensed contractor, contracted with a third party for any room additions, structural modifications, or repairs, and the seller was not provided with a copy of any permits obtained, the seller may satisfy the obligation pursuant to paragraph (1) in subdivision (a) by informing the buyer that any information on permits and copies of permits for the work disclosed pursuant to subdivision (a) may be obtained from the licensed contractor who performed the work. may be obtained from the third party and providing the contact information for the third party provided by the third party to the seller.(d) This section shall apply to the sale of a single-family residential property where the seller and buyer enter into a contract or agreement for the property on or after July 1, 2024.

 Amended IN  Assembly  March 29, 2023 Amended IN  Assembly  March 20, 2023 Amended IN  Assembly  March 02, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 968Introduced by Assembly Member GraysonFebruary 14, 2023An act to add Section 1102.6h to the Civil Code, relating to real property. LEGISLATIVE COUNSEL'S DIGESTAB 968, as amended, Grayson. Single-family residential property: disclosures.Existing law requires that specified disclosures be made upon any transfer by sale, exchange, real property sales contract, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements, of any single-family residential property. Existing law, after July 1, 2022, requires that every contract for the sale of single-family residential real property contain a notice stating that any appraisal of the property is required to be unbiased, objective, and not influenced by improper or illegal considerations.This bill would require a seller of a single-family residential property who sells that single-family residential property to a buyer within 18 months of purchasing that single-family residential property to disclose to the buyer specified information, including any room additions, structural modifications, other alterations, or repairs made to the property since the seller purchased the property that were performed by a licensed contractor and the name of each licensed contractor with whom the seller entered into a contract with for the room additions, structural modifications, other alterations, or repairs, as specified. The bill would alternatively authorize a seller to satisfy these obligations by providing a list of room additions, structural modifications, other alterations, or repairs performed by, and provided by, the licensed contractor with whom the seller contracted for the room additions, structural modifications, other alterations, or repairs. The bill would require the seller or licensed contractor to provide a copy of any permit for any room additions, structural modifications, other alterations, or repairs to the buyer, as specified. buyer or, if the seller contracted with a third party and was not provided with a copy of the permits, by informing the buyer that information on permits may be obtained from a third party and providing the third partys contact information. The bill would specify that these provisions apply to the sale of a single-family residential property where the seller and buyer enter into a contract or agreement for the property on or after July 1, 2024.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NO  Local Program: NO 

 Amended IN  Assembly  March 29, 2023 Amended IN  Assembly  March 20, 2023 Amended IN  Assembly  March 02, 2023

Amended IN  Assembly  March 29, 2023
Amended IN  Assembly  March 20, 2023
Amended IN  Assembly  March 02, 2023

 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION

 Assembly Bill 

No. 968

Introduced by Assembly Member GraysonFebruary 14, 2023

Introduced by Assembly Member Grayson
February 14, 2023

An act to add Section 1102.6h to the Civil Code, relating to real property. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 968, as amended, Grayson. Single-family residential property: disclosures.

Existing law requires that specified disclosures be made upon any transfer by sale, exchange, real property sales contract, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements, of any single-family residential property. Existing law, after July 1, 2022, requires that every contract for the sale of single-family residential real property contain a notice stating that any appraisal of the property is required to be unbiased, objective, and not influenced by improper or illegal considerations.This bill would require a seller of a single-family residential property who sells that single-family residential property to a buyer within 18 months of purchasing that single-family residential property to disclose to the buyer specified information, including any room additions, structural modifications, other alterations, or repairs made to the property since the seller purchased the property that were performed by a licensed contractor and the name of each licensed contractor with whom the seller entered into a contract with for the room additions, structural modifications, other alterations, or repairs, as specified. The bill would alternatively authorize a seller to satisfy these obligations by providing a list of room additions, structural modifications, other alterations, or repairs performed by, and provided by, the licensed contractor with whom the seller contracted for the room additions, structural modifications, other alterations, or repairs. The bill would require the seller or licensed contractor to provide a copy of any permit for any room additions, structural modifications, other alterations, or repairs to the buyer, as specified. buyer or, if the seller contracted with a third party and was not provided with a copy of the permits, by informing the buyer that information on permits may be obtained from a third party and providing the third partys contact information. The bill would specify that these provisions apply to the sale of a single-family residential property where the seller and buyer enter into a contract or agreement for the property on or after July 1, 2024.

Existing law requires that specified disclosures be made upon any transfer by sale, exchange, real property sales contract, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements, of any single-family residential property. Existing law, after July 1, 2022, requires that every contract for the sale of single-family residential real property contain a notice stating that any appraisal of the property is required to be unbiased, objective, and not influenced by improper or illegal considerations.

This bill would require a seller of a single-family residential property who sells that single-family residential property to a buyer within 18 months of purchasing that single-family residential property to disclose to the buyer specified information, including any room additions, structural modifications, other alterations, or repairs made to the property since the seller purchased the property that were performed by a licensed contractor and the name of each licensed contractor with whom the seller entered into a contract with for the room additions, structural modifications, other alterations, or repairs, as specified. The bill would alternatively authorize a seller to satisfy these obligations by providing a list of room additions, structural modifications, other alterations, or repairs performed by, and provided by, the licensed contractor with whom the seller contracted for the room additions, structural modifications, other alterations, or repairs. The bill would require the seller or licensed contractor to provide a copy of any permit for any room additions, structural modifications, other alterations, or repairs to the buyer, as specified. buyer or, if the seller contracted with a third party and was not provided with a copy of the permits, by informing the buyer that information on permits may be obtained from a third party and providing the third partys contact information. The bill would specify that these provisions apply to the sale of a single-family residential property where the seller and buyer enter into a contract or agreement for the property on or after July 1, 2024.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 1102.6h is added to the Civil Code, to read:1102.6h. (a) A seller of a single-family residential property who sells that single-family residential property to a buyer within 18 months of purchasing that single-family residential property shall disclose, in addition to any other disclosure required pursuant to this article, to the buyer both of the following:(1) Any room additions, structural modifications, other alterations, or repairs made to the property since the seller purchased the property that were performed by a licensed contractor with whom the seller entered into a contract.(2) The name of each licensed contractor with whom the seller entered into a contract with for the room additions, structural modifications, other alterations, or repairs disclosed in paragraph (1) and any contact information for the licensed contractor provided by the licensed contractor to the seller. The obligation to provide the name of the licensed contractor shall only apply to contracts where the aggregate contract price for labor, material, and all other items for the project or undertaking is in excess of the dollar amount specified in Section 7027.2 of the Business and Professions Code.(b) The sellers obligation to disclose the room additions, structural modifications, other alterations, or repairs made to the property performed by a licensed contractor may also be satisfied by providing a list of room additions, structural modifications, other alterations, or repairs performed by, and provided by, the licensed contractor with whom the seller contracted for the room additions, structural modifications, other alterations, or repairs.(c) (1) If the seller or licensed contractor obtained a permit for any room additions, structural modifications, other alterations, or repairs provided to the buyer pursuant to subdivision (a), the seller or licensed contractor shall provide a copy of the permit to the buyer.(2) If the seller does not have a copy of the permit obtained for the room additions, structural modifications, other alterations, or repairs, or is unaware of whether or not permits were obtained by the licensed contractor, contracted with a third party for any room additions, structural modifications, or repairs, and the seller was not provided with a copy of any permits obtained, the seller may satisfy the obligation pursuant to paragraph (1) in subdivision (a) by informing the buyer that any information on permits and copies of permits for the work disclosed pursuant to subdivision (a) may be obtained from the licensed contractor who performed the work. may be obtained from the third party and providing the contact information for the third party provided by the third party to the seller.(d) This section shall apply to the sale of a single-family residential property where the seller and buyer enter into a contract or agreement for the property on or after July 1, 2024.

The people of the State of California do enact as follows:

## The people of the State of California do enact as follows:

SECTION 1. Section 1102.6h is added to the Civil Code, to read:1102.6h. (a) A seller of a single-family residential property who sells that single-family residential property to a buyer within 18 months of purchasing that single-family residential property shall disclose, in addition to any other disclosure required pursuant to this article, to the buyer both of the following:(1) Any room additions, structural modifications, other alterations, or repairs made to the property since the seller purchased the property that were performed by a licensed contractor with whom the seller entered into a contract.(2) The name of each licensed contractor with whom the seller entered into a contract with for the room additions, structural modifications, other alterations, or repairs disclosed in paragraph (1) and any contact information for the licensed contractor provided by the licensed contractor to the seller. The obligation to provide the name of the licensed contractor shall only apply to contracts where the aggregate contract price for labor, material, and all other items for the project or undertaking is in excess of the dollar amount specified in Section 7027.2 of the Business and Professions Code.(b) The sellers obligation to disclose the room additions, structural modifications, other alterations, or repairs made to the property performed by a licensed contractor may also be satisfied by providing a list of room additions, structural modifications, other alterations, or repairs performed by, and provided by, the licensed contractor with whom the seller contracted for the room additions, structural modifications, other alterations, or repairs.(c) (1) If the seller or licensed contractor obtained a permit for any room additions, structural modifications, other alterations, or repairs provided to the buyer pursuant to subdivision (a), the seller or licensed contractor shall provide a copy of the permit to the buyer.(2) If the seller does not have a copy of the permit obtained for the room additions, structural modifications, other alterations, or repairs, or is unaware of whether or not permits were obtained by the licensed contractor, contracted with a third party for any room additions, structural modifications, or repairs, and the seller was not provided with a copy of any permits obtained, the seller may satisfy the obligation pursuant to paragraph (1) in subdivision (a) by informing the buyer that any information on permits and copies of permits for the work disclosed pursuant to subdivision (a) may be obtained from the licensed contractor who performed the work. may be obtained from the third party and providing the contact information for the third party provided by the third party to the seller.(d) This section shall apply to the sale of a single-family residential property where the seller and buyer enter into a contract or agreement for the property on or after July 1, 2024.

SECTION 1. Section 1102.6h is added to the Civil Code, to read:

### SECTION 1.

1102.6h. (a) A seller of a single-family residential property who sells that single-family residential property to a buyer within 18 months of purchasing that single-family residential property shall disclose, in addition to any other disclosure required pursuant to this article, to the buyer both of the following:(1) Any room additions, structural modifications, other alterations, or repairs made to the property since the seller purchased the property that were performed by a licensed contractor with whom the seller entered into a contract.(2) The name of each licensed contractor with whom the seller entered into a contract with for the room additions, structural modifications, other alterations, or repairs disclosed in paragraph (1) and any contact information for the licensed contractor provided by the licensed contractor to the seller. The obligation to provide the name of the licensed contractor shall only apply to contracts where the aggregate contract price for labor, material, and all other items for the project or undertaking is in excess of the dollar amount specified in Section 7027.2 of the Business and Professions Code.(b) The sellers obligation to disclose the room additions, structural modifications, other alterations, or repairs made to the property performed by a licensed contractor may also be satisfied by providing a list of room additions, structural modifications, other alterations, or repairs performed by, and provided by, the licensed contractor with whom the seller contracted for the room additions, structural modifications, other alterations, or repairs.(c) (1) If the seller or licensed contractor obtained a permit for any room additions, structural modifications, other alterations, or repairs provided to the buyer pursuant to subdivision (a), the seller or licensed contractor shall provide a copy of the permit to the buyer.(2) If the seller does not have a copy of the permit obtained for the room additions, structural modifications, other alterations, or repairs, or is unaware of whether or not permits were obtained by the licensed contractor, contracted with a third party for any room additions, structural modifications, or repairs, and the seller was not provided with a copy of any permits obtained, the seller may satisfy the obligation pursuant to paragraph (1) in subdivision (a) by informing the buyer that any information on permits and copies of permits for the work disclosed pursuant to subdivision (a) may be obtained from the licensed contractor who performed the work. may be obtained from the third party and providing the contact information for the third party provided by the third party to the seller.(d) This section shall apply to the sale of a single-family residential property where the seller and buyer enter into a contract or agreement for the property on or after July 1, 2024.

1102.6h. (a) A seller of a single-family residential property who sells that single-family residential property to a buyer within 18 months of purchasing that single-family residential property shall disclose, in addition to any other disclosure required pursuant to this article, to the buyer both of the following:(1) Any room additions, structural modifications, other alterations, or repairs made to the property since the seller purchased the property that were performed by a licensed contractor with whom the seller entered into a contract.(2) The name of each licensed contractor with whom the seller entered into a contract with for the room additions, structural modifications, other alterations, or repairs disclosed in paragraph (1) and any contact information for the licensed contractor provided by the licensed contractor to the seller. The obligation to provide the name of the licensed contractor shall only apply to contracts where the aggregate contract price for labor, material, and all other items for the project or undertaking is in excess of the dollar amount specified in Section 7027.2 of the Business and Professions Code.(b) The sellers obligation to disclose the room additions, structural modifications, other alterations, or repairs made to the property performed by a licensed contractor may also be satisfied by providing a list of room additions, structural modifications, other alterations, or repairs performed by, and provided by, the licensed contractor with whom the seller contracted for the room additions, structural modifications, other alterations, or repairs.(c) (1) If the seller or licensed contractor obtained a permit for any room additions, structural modifications, other alterations, or repairs provided to the buyer pursuant to subdivision (a), the seller or licensed contractor shall provide a copy of the permit to the buyer.(2) If the seller does not have a copy of the permit obtained for the room additions, structural modifications, other alterations, or repairs, or is unaware of whether or not permits were obtained by the licensed contractor, contracted with a third party for any room additions, structural modifications, or repairs, and the seller was not provided with a copy of any permits obtained, the seller may satisfy the obligation pursuant to paragraph (1) in subdivision (a) by informing the buyer that any information on permits and copies of permits for the work disclosed pursuant to subdivision (a) may be obtained from the licensed contractor who performed the work. may be obtained from the third party and providing the contact information for the third party provided by the third party to the seller.(d) This section shall apply to the sale of a single-family residential property where the seller and buyer enter into a contract or agreement for the property on or after July 1, 2024.

1102.6h. (a) A seller of a single-family residential property who sells that single-family residential property to a buyer within 18 months of purchasing that single-family residential property shall disclose, in addition to any other disclosure required pursuant to this article, to the buyer both of the following:(1) Any room additions, structural modifications, other alterations, or repairs made to the property since the seller purchased the property that were performed by a licensed contractor with whom the seller entered into a contract.(2) The name of each licensed contractor with whom the seller entered into a contract with for the room additions, structural modifications, other alterations, or repairs disclosed in paragraph (1) and any contact information for the licensed contractor provided by the licensed contractor to the seller. The obligation to provide the name of the licensed contractor shall only apply to contracts where the aggregate contract price for labor, material, and all other items for the project or undertaking is in excess of the dollar amount specified in Section 7027.2 of the Business and Professions Code.(b) The sellers obligation to disclose the room additions, structural modifications, other alterations, or repairs made to the property performed by a licensed contractor may also be satisfied by providing a list of room additions, structural modifications, other alterations, or repairs performed by, and provided by, the licensed contractor with whom the seller contracted for the room additions, structural modifications, other alterations, or repairs.(c) (1) If the seller or licensed contractor obtained a permit for any room additions, structural modifications, other alterations, or repairs provided to the buyer pursuant to subdivision (a), the seller or licensed contractor shall provide a copy of the permit to the buyer.(2) If the seller does not have a copy of the permit obtained for the room additions, structural modifications, other alterations, or repairs, or is unaware of whether or not permits were obtained by the licensed contractor, contracted with a third party for any room additions, structural modifications, or repairs, and the seller was not provided with a copy of any permits obtained, the seller may satisfy the obligation pursuant to paragraph (1) in subdivision (a) by informing the buyer that any information on permits and copies of permits for the work disclosed pursuant to subdivision (a) may be obtained from the licensed contractor who performed the work. may be obtained from the third party and providing the contact information for the third party provided by the third party to the seller.(d) This section shall apply to the sale of a single-family residential property where the seller and buyer enter into a contract or agreement for the property on or after July 1, 2024.



1102.6h. (a) A seller of a single-family residential property who sells that single-family residential property to a buyer within 18 months of purchasing that single-family residential property shall disclose, in addition to any other disclosure required pursuant to this article, to the buyer both of the following:

(1) Any room additions, structural modifications, other alterations, or repairs made to the property since the seller purchased the property that were performed by a licensed contractor with whom the seller entered into a contract.

(2) The name of each licensed contractor with whom the seller entered into a contract with for the room additions, structural modifications, other alterations, or repairs disclosed in paragraph (1) and any contact information for the licensed contractor provided by the licensed contractor to the seller. The obligation to provide the name of the licensed contractor shall only apply to contracts where the aggregate contract price for labor, material, and all other items for the project or undertaking is in excess of the dollar amount specified in Section 7027.2 of the Business and Professions Code.

(b) The sellers obligation to disclose the room additions, structural modifications, other alterations, or repairs made to the property performed by a licensed contractor may also be satisfied by providing a list of room additions, structural modifications, other alterations, or repairs performed by, and provided by, the licensed contractor with whom the seller contracted for the room additions, structural modifications, other alterations, or repairs.

(c) (1) If the seller or licensed contractor obtained a permit for any room additions, structural modifications, other alterations, or repairs provided to the buyer pursuant to subdivision (a), the seller or licensed contractor shall provide a copy of the permit to the buyer.

(2) If the seller does not have a copy of the permit obtained for the room additions, structural modifications, other alterations, or repairs, or is unaware of whether or not permits were obtained by the licensed contractor, contracted with a third party for any room additions, structural modifications, or repairs, and the seller was not provided with a copy of any permits obtained, the seller may satisfy the obligation pursuant to paragraph (1) in subdivision (a) by informing the buyer that any information on permits and copies of permits for the work disclosed pursuant to subdivision (a) may be obtained from the licensed contractor who performed the work. may be obtained from the third party and providing the contact information for the third party provided by the third party to the seller.

(d) This section shall apply to the sale of a single-family residential property where the seller and buyer enter into a contract or agreement for the property on or after July 1, 2024.