Real property transactions: Counties of Los Angeles and Ventura wildfires: unsolicited offers.
Impact
If enacted, AB 851 would introduce new requirements and penalties for making unsolicited offers. It mandates that both buyers and sellers execute a written attestation affirming that any purchase agreement did not arise from an unsolicited offer. This attestation must be recorded alongside the title deed when recording the property transfer. Moreover, violators of this prohibition would face a civil penalty of up to $25,000 and potential misdemeanor charges, thereby reinforcing the importance of compliance with these new regulations. The bill is structured to be operational within 30 days of its passage and will expire on January 1, 2027.
Summary
Assembly Bill 851, introduced by Assembly Member McKinnor, addresses real property transactions in the wake of wildfires that affected the Counties of Los Angeles and Ventura. The bill seeks to prevent exploitative practices in the housing market by prohibiting unsolicited offers to purchase residential properties in specifically designated ZIP Codes that were impacted by the January 2025 wildfires. This measure aims to protect property owners, who might be vulnerable in the aftermath of such disasters, from offers that could undermine the fair market value of their homes.
Sentiment
Supporters of AB 851 view it as a necessary measure to safeguard homeowners in the affected communities, emphasizing the importance of consumer protection in real estate transactions following natural disasters. However, there are concerns from some stakeholders regarding the practical implications of implementing such a prohibition on unsolicited offers. They worry about how this might affect market dynamics and the ability of buyers to approach property owners, potentially leading to a more rigid housing market.
Contention
The legislation includes provisions that expand the crime of perjury related to false attestations, raising concerns among real estate professionals about the increased liabilities they will face. The requirement to record attestation could be seen as an administrative burden that complicates transactions. Critics argue that while the intent is to protect consumers, the restrictions might inadvertently stifle legitimate offers, resulting in unintended consequences in the real estate market.
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.