Los Angeles fire victims get protections from predatory real estate investors under new order from Gov. Gavin Newsom
On Tuesday, January 14th, Governor Gavin Newsom issued an executive order to protect firestorm victims in the Los Angeles area from predatory land speculators making aggressive and unsolicited cash offers to purchase their property. Taking advantage of the disaster and associated trauma, these predatory and exploitative practices endanger the financial well-being and security of vulnerable victims.
The executive order safeguards residents of hard-hit zip codes (including 90272) in Los Angeles County from these predatory practices. Undermarket offers by opportunistic investors in communities such as Pacific Palisades and Altadena threaten the character and vibrancy of the community and could displace and endanger vulnerable residents who have long ties and investments in the community.
The Governor’s executive order:
- Makes unsolicited undervalued offers to purchase property from property owners in specified zip codes of Los Angeles County unlawful for a period of three months from the date of this Order.
- Directs the Department of Real Estate, along with other state agencies, to provide notice to the public of their rights under the law, resources for more information, and contact information for law enforcement agencies, such as the Attorney General’s Office and District Attorney, with the power to enforce the prohibition.
- California law makes it a misdemeanor to violate a Governor’s order during a state of emergency, which can be prosecuted by the Attorney General or local district attorneys. Violations can be reported to the Attorney General’s office at oag.ca.gov/report.
This executive order is modeled on a similar order issued by Hawaii Governor Josh Green to preserve local communities and protect residents from exploitation after wildfires destroyed the town of Lahaina and surrounding areas in August 2023.
A copy of the executive order can be found here.