Existing law regulates sale transactions of real property, including requiring real property sales contracts to include specified disclosures. On January 7, 2025, the Governor proclaimed a state of emergency to exist in the Counties of Los Angeles and Ventura due to fire and windstorm conditions that caused multiple fires. Executive Order No. N-7-25, signed by the Governor on January 14, 2025, prohibits a buyer from making an unsolicited offer to an owner of real property located in specified ZIP Codes in the County of Los Angeles to purchase the real property for an amount less than what the fair market value of the property was on January 6, 2025. Executive Order No. N-17-25 expanded that prohibition to include real properties in additional specified ZIP Codes. Executive Order No. N-7-25 imposes the prohibition for 3 months from January 14, 2025. Existing law makes a violation of the executive order a misdemeanor, as specified.
Existing law, the Real Estate Law, provides for the licensure and regulation of real estate brokers and salespersons by the Real Estate Commissioner, the chief officer of the Department of Real Estate within the Business, Consumer Services, and Housing Agency. Existing law makes a willful violation of the Real Estate Law a crime.
This bill would prohibit a buyer from making an unsolicited offer to purchase residential real property in the ZIP Codes in the County of Los Angeles covered by the above-described executive orders. The bill would require a buyer and seller to execute a written attestation affirming compliance with this provision, as specified, prior to the transfer of title, which, if signed, would create a presumption that the accepted offer was solicited by the seller, as specified. The bill would require a county recorder to require that the signed attestation be attached to the deed or other conveyance of title as a condition of recording the transfer of title. Because the bill would expand the crime of perjury and impose a new duty on county recorders, the bill would impose a state-mandated local program.
This bill would make a written offer on behalf of a buyer in violation of these provisions by a licensed person under the Real Estate Law a violation of the person's licensing law. The bill would authorize the Attorney General, a county counsel, city attorney, or a district attorney to bring a civil action to enforce these provisions. In addition to any other available remedies or penalties, for violations of these provisions, the bill would grant a seller the right to cancel a real property sales contract, authorize an assessment of a civil penalty, and make the violations a misdemeanor, as specified. By making a violation of the bill's provisions a violation of the Real Estate Law and creating a new crime, this bill would impose a state-mandated local program.
This bill would repeal these provisions on January 1, 2027.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for specified reasons.
This bill would declare that it is to take effect immediately as an urgency statute.