As of July 1, 2021, California Assembly Bill 38 (AB 38) states that the seller of a residential property located in specified zones must submit documentation of compliance with locally adopted defensible space requirements prior to the close of escrow.
The new home hardening and defensible space disclosure requirement in California, related to Assembly Bill 38, took effect on July 1, 2021. This applies to sellers of residential property located in High or Very High Fire Hazard Severity Zones. The law requires sellers to provide documentation demonstrating compliance with defensible space requirements or, if unavailable, an agreement for the buyer to obtain such documentation within one year of escrow closing.
In June 2025, the California Association of Realtors revised its Fire Hardening and Defensible Space Disclosure and Addendum, whereby the Seller must disclose if 12 specific home hardening conditions have been satisfied.
Starting July 1, 2025, the new regulations now require sellers of homes in California’s high and very high fire hazard zones to disclose information about fire hardening and defensible space, including a list of affordable upgrades that have been completed. This disclosure, along with the Natural Hazard Disclosure, will help buyers understand the wildfire risk and potential mitigation measures.
KEY CHANGES FOR REALTORS STARTED JULY 1, 2025
- Mandatory Disclosure:
Sellers must disclose whether their property is in a high or very high fire hazard severity zone and provide information about defensible space and fire hardening. - Affordable Upgrades List:
Sellers must provide a list of low-cost retrofits for fire hardening and indicate which of these upgrades have been completed. - Defensible Space Compliance:
Sellers will need to provide documentation showing their property complies with local defensible space laws. - Impact on Buyers:
Buyers will be better informed about the wildfire risk and can make more informed decisions about purchasing a property.
IMPACT ON REAL ESTATE TRANSACTIONS:
- Increased Transparency:
The disclosures aim to create a more transparent real estate transaction process by providing buyers with more information about wildfire risks. - Potential for Increased Costs:
Sellers may need to invest in fire-hardening upgrades to make their properties more appealing to buyers. - Need for Agent Education:
Realtors need to be well-informed about these new requirements to provide their clients with proper advice.
ADDITIONAL CONSIDERATIONS AND INFORMATION:
- Local Ordinances:
Buyers and sellers should be aware of additional local ordinances regarding defensible space and home hardening. - AB 38:
Assembly Bill 38 (AB 38) requires real estate disclosures for properties in high or very high fire hazard zones. - CAL FIRE:
CAL FIRE manages Defensible Space Inspections related to selling real estate.
