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.
This bill would codify and extend that prohibition until January 1, 2027. By creating a new crime, this bill would impose a state-mandated local program. The bill also, until January 1, 2027, would require a real property sales contract entered into on or after the bill's effective date for a property in one of those ZIP Codes to contain provisions that give the seller the right to cancel the contract for 6 months after the date of execution of the contract, and, if so canceled, entitle the buyer to reimbursement of the purchase price and cost of improvements.
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 a specified reason.
This bill would declare that it is to take effect immediately as an urgency statute.