In response to the aftermath of the recent firestorms in Los Angeles County, Governor Gavin Newsom has taken action to prevent the exploitation of fire victims by predatory real estate speculators. A new executive order issued by Newsom aims to curb the unwelcome advances of investors looking to capitalize on the misfortune of the affected families by making lowball cash offers for their damaged properties. According to the Governor's Office, this practice is now unlawful in specified zip codes within the region for three months starting from the order date.
Hard-hit areas, including the working-class neighborhood of Altadena, faced the brunt of the Eaton Fire's wrath, with widespread damage reported across the community. With houses still smoldering, some residents reported receiving undervalued offers for their properties, according to Governor 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," Newsom said, as stated by the Governor's Office. His executive action is focused on protecting the residents' financial interests and preserving the character and integrity of the communities at risk.
The executive order provides several directives to combat these practices, including a collaboration between the Department of Real Estate and other state agencies to educate the public on their rights and available resources. Enforcement will be a joint effort with the Attorney General’s Office and local District Attorneys empowered to prosecute any prohibition violations, as per the Governor's Office. Offending parties found in violation of the Governor's order during a state of emergency may face misdemeanor charges as detailed by California law.
