For the second time within a week, California Attorney General Rob Bonta has filed charges against a real estate agent involving alleged price gouge of a family evacuated from to the Los Angeles Eaton Fire.
According to a statement from Bonta’s office, the defendant offered the family a new price that exceeded the listing price by more than 50%, which is in excess of the 10% limit laid out in Penal Code section 396 while the Governor’s Emergency Orders are in effect. Bonta announced the charges were “another example of DOJ’s commitment to put an end to price gouging.”
Bonta’s office did not identify the agent, although media reports stated it was Lar Sevan Chouljian of Team Rock Properties. In a text message to LAist, Choulijian denied Bonta’s charges.
“There was absolutely no price gouging involved, and in fact, the property closed under the 10% limit,” the text stated.
Last week, Bonta’s office filed similar charges against Mike Kobeissi of Kobeissi Properties, who also denied he was engaged in price gouging.
The California Attorney General should be focused on why insurance companies were cancelling homeowner policies before the fire and how these horrific fires even happened.
Everyone puts the Real Estate agent down. Lets face it, most of them are pretty dopey and I speak to this as one of them.
Agents do not set prices. Property owners have to make the decision as to rental rates…and quite honestly the rental rates are determined by the market. So, if there is a situation where thousands of people lost their homes and need a rental, the owner of a property that is available for rent should be able to charge whatever they want.
It is California, so you know that there will always be some stupid law to work around.
If it was my listing I would advise owner to put the rent at market rate and have a tenant paid premium. So if rent is $3,000 a month, charge $3,000 a month, but have a tenant paid premium. I would make it like an auction. Best and final by a set time. Tenant pays rent at $3,000/month but has to pay a fee to get the lease. Highest bidder wins!
“Dopey is right! Hey D, Inform your client that the State is coming for them if you jack your price by more than 10% of typical rents during this period of extreme hardship for many. Forget about “highest and best”; Do your fiduciary duty and inform your client there is a new law prohibiting that kind of tasteless business practice.