California now requires sellers of older homes in wildfire-prone areas to disclose fire risks and mitigation measures to potential buyers. This new mandate, effective since July, applies to homes built before 2010, when the state updated its building codes to better withstand wildfires. Sellers must inform buyers of any vulnerabilities, such as wood-shingle roofs or single-pane windows, and outline steps taken to reduce these risks.
According to Bloomberg, this disclosure is part of a broader effort to encourage homeowners to retrofit properties against wildfires. The law, a provision of a 2019 California statute, aims to enhance buyer awareness and potentially reshape the housing market by influencing home prices.
As reported by the San Francisco Chronicle, sellers must also provide a list of low-cost measures buyers can take to mitigate wildfire risks. This rule helps buyers understand a property’s preparedness against wildfires and could aid in securing insurance coverage, especially in high-risk areas like the East Bay hills.
Experts believe this law could lead to a price premium for homes with demonstrated fire safety measures. However, HousingWire notes that while targeted climate disclosures can influence buyer behavior, the overall impact on sales remains uncertain. California plans to enforce stricter rules in 2029, requiring property owners in high-risk zones to remove vegetation and combustible materials near structures.
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