California Gov. Gavin Newsom issued an executive order to protect Los Angeles County victims of the ongoing wildfires from predatory land speculators offering unsolicited cash offers to purchase their property.
In a statement from the governor’s office, the executive order is designed to allow the state to hold these predatory speculators accountable through stronger enforcement and prosecution. It also directs the Department of Real Estate and other state agencies to provide notice to the public of their rights under the law, resources for more information. 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.
Newsom’s office acknowledged the executive order is modeled on a similar order issued by Hawaii Governor Josh Green to preserve local communities and protect residents from exploitation after the Maui wildfires in August 2023. Earlier this week, Newsom waived the state’s environmental laws in areas impacted by the wildfires to expedite the rebuilding of damaged and destroyed properties.
“As families mourn, the last thing they need is greedy speculators taking advantage of their pain,” said Newsom. “I have heard first-hand from community members and victims who have received unsolicited and predatory offers from speculators offering cash far below market value — some while their homes were burning. We will not allow greedy developers to rip off these working-class communities at a time when they need more support than ever before.”
Photo by Gage Skidmore / Flickr Creative Commons
He made the right Call!!
I don’t agree with Nescum. It is one thing to warn people, but who is he to tell people what they can sell their Real Estate for??
Read the story. He never told them what to sell for. Your reading comprehension is typical for MAGA!
Not Maga. I read the story and saw it in the news, I am well informed.
He is trying to meddle in “Fair market value”. California Government needs to stay out of Real Estate.
They lie, example: The “Mansion Tax”, which it’s real name is the “Homelessness and Housing Solutions Tax” to deceive people to vote for it. (You would know this if you have done any deal above $5M)
He already let our City burn to the ground. You may want to sit this one out “John”
I understand the good intentions but making an offer to buy someone’s property and having them accept the offer is not “predatory.” It seems more predatory of the government to now limit the buying pool by making potential buyers afraid of litigation. And it will become near impossible to figure out the “market value” of those lots in the state they are in. The market value is simply the junction of what an informed reasonable seller will offer and what an informed reasonable buyer will accept.
For those that their insurance was cancelled and they still have a mortgage to pay, their saving grace might be a quick sale. People should consult an agent or appraiser before selling and not take below market in most circumstances anyway.
If the developers are afraid to bid for fear of prosecution, the prices could lower and re-development could be slowed down. This is the law of unintended consequences.