Real property transactions: Counties of Los Angeles and Ventura wildfires: unsolicited offers.
Impact
The bill specifically targets areas that experienced emergency conditions, reinforcing protections for homeowners against exploitative practices that may arise during vulnerable periods. By mandating that buyers acquire a written attestation from sellers affirming that a purchase agreement was not a result of unsolicited offers, AB 851 seeks to ensure market integrity. The bill also provides for civil penalties for breaches of these provisions and empowers local and state authorities to enforce compliance, strengthening regulatory frameworks within the California real estate sector.
Summary
Assembly Bill 851, introduced by Assembly Member McKinnor, addresses the issue of unsolicited offers to purchase residential real property in specific ZIP Codes affected by wildfires in the Counties of Los Angeles and Ventura. Following the state of emergency declared on January 7, 2025, due to devastating fires, the Governor issued executive orders to prohibit unsolicited offers for properties in areas impacted by these natural disasters. The bill builds upon this prohibition by establishing legal requirements around property transactions in affected areas, emphasizing consumer protection and fair market value.
Sentiment
The sentiment surrounding AB 851 appears to be largely supportive among its proponents, who view it as a necessary measure to protect residents from predatory real estate practices in the wake of disaster. However, there may be contention from real estate professionals and investors who may perceive the restrictions as limiting their ability to conduct business in the affected areas. The discussions reflect a balance between ensuring consumer protections and maintaining market freedoms in real estate transactions, highlighting the need for thoughtful regulatory oversight.
Contention
A notable point of contention is the classification of unsolicited offers and the definition of fair market value as the bill delineates these concepts within its framework. The requirement for written attestations creates additional complexities in the transactional processes, which may draw criticism from industry stakeholders concerned about implementation burdens. Furthermore, the bill is set to expire on January 1, 2027, which could lead to future debates about its effectiveness and the ongoing need for such protections beyond the specified date.
Standards for rent and utility payments, fees, and charges in manufactured home park provided; safety inspections required; sale of manufactured home parks provisions modified; and penalties modified.