In response to the devastating wildfires that have impacted communities across the Greater Los Angeles Area, Governor Newsom issued Executive Order N-7-25. This order aims to safeguard property owners from exploitation during this vulnerable time.
Protecting Against Predatory Offers
In the aftermath of the fires, some homeowners, business property owners, and community leaders have reported receiving unsolicited offers to purchase properties at prices significantly below their fair market value prior to the disaster. While property owners retain the right to sell, those affected by the fires may be more susceptible to unfair practices. If you receive such an offer, report it to the California Department of Real Estate (DRE) at [email protected].
Key Provisions of Executive Order N-7-25
The Executive Order prohibits unsolicited offers to purchase properties for less than their fair market value as of January 6, 2025, in the zip codes affected by the fires. Violations of this order are considered misdemeanors and can result in fines of up to $1,000 and/or imprisonment for up to six months. The prohibition is effective until April 14, 2025.
Important: This order does not restrict property owners who choose to sell on their own terms.
Affected Areas
The Executive Order applies to properties in the following zip codes: 90019, 90041, 90049, 90066, 90265, 90272, 90290, 90402, 91001, 91040, 91104, 91106, 91107, 93535, and 93536. These areas include hard-hit neighborhoods such as Pacific Palisades, Malibu, Santa Monica, Topanga, Pasadena, Altadena, Eagle Rock, and others.
What Is an Unsolicited Offer?
An unsolicited offer refers to a purchase proposal made to a property owner who has not actively listed or advertised their property for sale. These offers may arrive via text, email, phone call, or mail and often:
- Promise quick, hassle-free closings or all-cash deals.
- Include vague or evasive responses to questions.
- Suggest selling immediately to avoid future insurance complications.
- Offer prices significantly below pre-fire market values.
If you receive an unsolicited offer that feels unfair or fraudulent, report it to DRE at [email protected].
Spotting Unlawful Practices
Watch for these red flags when evaluating unsolicited offers:
- Pressure Tactics: Claims that you won’t qualify for insurance unless you sell.
- Too Good to Be True Promises: Offers of full lien payments, pre-closing cash advances, or no commissions.
- Lowball Offers: Prices far below your property’s value before the fires.
Take Time to Evaluate Offers
This Executive Order ensures property owners can make informed decisions without undue pressure. While unsolicited offers are restricted, you can still:
- Research the value of your property.
- Seek advice from real estate professionals or attorneys.
- Market your property at a price that meets your needs.
Resources for Property Owners
If your property was damaged or destroyed, the following resources may assist you:
- Your Lender/Loan Servicer: Contact them for potential payment relief options.
- Insurance Providers: File claims for rebuilding if you have fire insurance. For disputes, call the California Department of Insurance at 1-800-927-4357.
- HUD-Approved Housing Counselors: Get advice on renting, foreclosure avoidance, and more by calling 1-800-569-4287.
- Legal Aid: Seek assistance from local organizations like the Legal Aid Foundation of Los Angeles.
- Contractor Verification: Confirm contractors are licensed via the Contractors State License Board (https://www.cslb.ca.gov).
Final Reminder
Be cautious when considering offers, especially during challenging times. For more information or assistance with evaluating offers and exploring your options, reach out to a trusted real estate professional.
Contact Westside Los Angeles Luxury Real Estate Broker Abdo Pierre Faissal at Nourmand & Associates for more information:
📞 310-620-1038
📧 [email protected]