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Question: Does California prohibit a person from making an unsolicited offer to purchase a residential property located in certain zip codes of Los Angeles and Ventura counties for less than the property’s fair market value?

Answer:  Yes, in January 2025 in response to the devastating California wildfires that month, California’s Governor Newsom issued an Executive Order prohibiting such conduct.  Effective November 10, 2025, California enacted California Assembly Bill 851 codifying this prohibition.  The law reflects a broader legislative effort to ensure fair treatment of property owners during emergencies and to prevent exploitation of homeowners in real estate transactions.  

The new law prohibits a “person” from making an “unsolicited offer to purchase” residential real property in specified zip codes in Los Angeles and Ventura counties that were affected by the January 2025 wildfires. 

“Unsolicited offer to purchase” is defined as any offer to purchase a property made by any person by text message, email, telephone call, mail, or other means of communication, unless either of the following conditions are met:

• At or before the time that the offer is made, there is public indicia that the owner is willing to sell the property, including, but not limited to:
  • The property is listed for sale by the owner or their agent on a multiple listing service or in any publicly available marketing platform for the sale of the property.

• • The owner placed a “for sale” sign on the property, posted in a public place a flyer listing the property for sale, or advertised the property in a print publication.

• The offer was made prior to the enactment of this law.

“Person” includes a corporation, firm, partnership, or association existing under or authorized by the laws of this state or any other state, or any foreign country.

The law requires a buyer and seller to execute a written attestation affirming compliance with the law, prior to the transfer of title. The signed attestation creates a presumption that the accepted offer was solicited by the seller or the property, unless there is clear and convincing evidence to the contrary. The attestation must be attached to the deed as a condition of recording the transfer of title. 

The prohibition of unsolicited offers is set to last until January 1, 2027, at which time the law will automatically be repealed, providing a temporary safeguard for homeowners in affected areas. 

Violations of the law can result in civil penalties in amount of up to $25,000 per violation. A person who violates the law can result in misdemeanor charges, and, upon conviction thereof, may results in a fine of up to $1,000 or imprisonment up to six months. 

Additionally, the law grants the seller the right to cancel a contract in violation of the law which right may be exercised with four months of the contract date. 

The following zip codes are subject to the law: 90019, 90041, 90049, 90066, 90265, 90272, 90290, 90402, 91001, 91024, 91040, 91103, 91104, 91106, 91107, 91367, 93535, and 93536.