AB 851: Real property transactions: Counties of Los Angeles and Ventura wildfires: unsolicited offers.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law regulates sale transactions of real property. On January 7, 2025, the Governor proclaimed a state of emergency to exist in the Counties of Los Angeles and Ventura due to fire and windstorm conditions that caused multiple fires. Executive Order No. N-7-25, signed by the Governor on January 14, 2025, prohibited a buyer from making an unsolicited offer to an owner of real property located in specified ZIP Codes in the County of Los Angeles to purchase the real property for an amount less than what the fair market value of the property was on January 6, 2025. Executive Order No. N-17-25 expanded that prohibition to include real properties in additional specified ZIP Codes. Subsequent executive orders extended the prohibition until July 1, 2025. Existing law makes a violation of the executive order a misdemeanor, as specified.

Existing law, the Real Estate Law, provides for the licensure and regulation of real estate brokers and salespersons by the Real Estate Commissioner, the chief officer of the Department of Real Estate within the Business, Consumer Services, and Housing Agency. Existing law makes a willful violation of the Real Estate Law a crime.

This bill would prohibit a person, as defined, from making an unsolicited offer to purchase residential real property in certain ZIP Codes in the County of Los Angeles covered by the above-described executive orders and other specified ZIP Codes in the Counties of Los Angeles and Ventura. The bill would define “unsolicited offer to purchase” for this purpose. The bill would require the buyer and seller, before the transfer of title in the purchase of residential real property subject to the above-described prohibition, to execute a written attestation affirming compliance with that prohibition, which, if signed, would create a presumption that the accepted offer was solicited by the seller, as specified. The bill would require the buyer to record the signed attestation as an attachment to the deed or other conveyance of title when recording the transfer of title, as specified. Because the bill would expand the crime of perjury, the bill would impose a state-mandated local program.

This bill would make a written offer in violation of these provisions by a licensed person under the Real Estate Law on their own behalf, or on behalf of another person while conducting licensed activity, a violation of the person’s licensing law, unless SB 641 is enacted and becomes operative, in which case the offer would be a violation of a provision added by SB 641. The bill would authorize the Attorney General, a county counsel, city attorney, or a district attorney to bring a civil action to enforce these provisions. In addition to any other available remedies or penalties, the bill would grant a seller the right to cancel a purchase agreement entered into in violation of these provisions, as specified. The bill would subject a person who violates the above-described prohibition on making an unsolicited offer to purchase real property in those ZIP Codes to an assessment of a civil penalty, and would make the violation a misdemeanor, as specified. By creating new crimes, this bill would impose a state-mandated local program.

This bill would make these provisions severable, would make these provisions operative 30 days after the effective date of the bill, and would repeal these provisions on January 1, 2027.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Counties of Los Angeles and Ventura.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. October 10, 2025Chaptered by Secretary of State - Chapter 535, Statutes of 2025.
2. October 10, 2025Approved by the Governor.
3. September 23, 2025Enrolled and presented to the Governor at 4 p.m.
4. September 11, 2025Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 66. Noes 7. Page 3303.).
5. September 10, 2025In Assembly. Concurrence in Senate amendments pending.
6. September 10, 2025Read third time. Urgency clause adopted. Passed. Ordered to the Assembly. (Ayes 30. Noes 8. Page 2814.).
7. September 8, 2025Read second time. Ordered to third reading.
8. September 5, 2025Read third time and amended. Ordered to second reading.
9. September 2, 2025Read second time. Ordered to third reading.
10. August 29, 2025Read second time and amended. Ordered returned to second reading.
11. August 29, 2025From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (August 29).
12. August 18, 2025In committee: Referred to suspense file.