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Replacing Your HVAC System? Here's What You Need to Know.

California law requires a permit and Title 24 energy inspection every time an HVAC system is replaced or altered. Here's what that means for you — and how to make sure your contractor does it right.

When is a Permit & Title 24 Inspection Required?

In California, a permit and Title 24 energy compliance inspection are required any time your HVAC system is replaced or altered — regardless of the age of your home or the size of the system.

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AC / Condenser Replacement

Replacing your outdoor air conditioner or condenser unit requires a permit and Title 24 inspection in all California climate zones.

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Furnace / Heater Replacement

Replacing your furnace or forced air unit requires a permit to be pulled before work begins and a Title 24 inspection before the job is signed off.

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Ductwork Replacement

Any replacement or alteration of your home's ductwork requires a permit and duct leakage testing to verify the system is properly sealed.

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Heat Pump Installation

Installing or replacing a heat pump requires a permit and Title 24 verification. Under California's 2025 energy code, some AC replacements now require upgrading to a heat pump.

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Important — This Is Your Responsibility as a Homeowner

Even if your contractor does not mention a permit, California law requires one. If unpermitted work is discovered later — during a home sale, insurance claim, or city inspection — the consequences fall on you as the homeowner, not just the contractor.

What Can Go Wrong Without a Permit?

Most homeowners assume their contractor handles everything correctly. But many HVAC installations in California are completed without the required permit and Title 24 inspection — leaving homeowners exposed to serious risk.

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Home Sale Falls Through

Unpermitted HVAC work is flagged during escrow. Buyers walk away or demand price reductions — costing you thousands at closing and potentially derailing the sale entirely.

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Insurance Claim Denied

If a fire or damage occurs and the HVAC work was unpermitted, your insurance company can deny the entire claim — leaving you with nothing.

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Costly Retroactive Permits

Getting a permit after the fact costs 2–3x more than doing it right the first time. Walls may need to be opened for inspection access. You pay for all of it.

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Safety Risk

A Title 24 inspection verifies the system was installed correctly and safely. Without it, faulty installations go undetected and can create hazards in your home.

Documented California Case

A contractor completed an HVAC install without a permit. When the homeowner went to sell, the unpermitted work was flagged during escrow. The contractor paid a $2,800 fine, retroactive permit fees, and wall repair costs for inspection access. Total cost exceeded $7,000 on a job originally priced at $4,500 — and the home sale was delayed three weeks.

Questions to Ask Your Contractor Before Work Begins

Before signing anything or allowing work to start, ask your HVAC contractor these questions. A legitimate, licensed contractor will have no problem answering all of them.

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Official State of California Guidance

The California Contractors State License Board (CSLB) advises homeowners to beware of any contractor that offers a lower price to install a unit without a permit — having a permit ensures work will be inspected. A properly permitted and inspected HVAC system can yield up to a 300% return on your investment through lower energy bills over the life of the equipment.

Source: CSLB HVAC Ambassador Packet  ·  cslb.ca.gov  ·  Verify any contractor license: (800) 321-2752

Have questions? We're here to help.

Whether you're a homeowner trying to understand your rights or need help verifying that your HVAC work was done correctly — give us a call or send us an email. We're happy to point you in the right direction.