Mayor transmits predatory home‑buying ordinance to Seattle Council; legislation would add disclosures, cancellation rights and fines

City Hall officials presented proposed legislation aimed at restricting predatory direct‑to‑seller home‑buying practices and asked the council to act before the fall budget process. The mayor transmitted the ordinance to the council; Finance and Administrative Services (FAS) consumer‑protection staff and council central staff described how the rule would work and how the city would implement and enforce it.

City staff described predatory home‑buying as unsolicited approaches — calls, postcards, texts or visits — to homeowners offering to buy properties not listed on the MLS. Officials said the most at‑risk groups include elderly homeowners, financially distressed owners and legacy Black homeowners in neighborhoods experiencing displacement pressures.

Under the proposed ordinance, buyers sequencing a direct purchase would be required to provide written disclosures at least five days before a purchase contract is signed. The disclosures must explain the homeowner’s right to obtain an independent appraisal (paid for by the buyer), the right to consult a real‑estate agent and legal counsel, and provide contact information for reporting violations to the city. The purchase contract itself must include a separate disclosure and an explicit statement that the homeowner may cancel the contract without penalty.

If a homeowner obtains an appraisal after signing, the homeowner may cancel the contract without penalty up to 10 business days after receipt of the appraisal. If no appraisal is obtained, the homeowner may cancel within 10 days after execution of the contract. The city said those timeframes give homeowners a buffer to assess fair market value and seek counsel. The ordinance also contains recordkeeping and documentation requirements so the city can verify that disclosures were delivered.

FAS consumer‑protection staff detailed enforcement and outreach plans: complaints would be received online, in person or by phone and assigned to consumer‑protection inspectors for investigation. FAS said its planned enforcement would include civil citations — $7,500 for a first violation and $10,000 for a second violation occurring within 12 months — with citations appealable to the hearing examiner within 10 days. The ordinance also creates a private right of action so affected homeowners may sue for violations.

City attorneys and staff said the draft aims to align with recently enacted state legislation but adds stronger local protections: longer homeowner cancellation windows in some instances, more stringent documentation requirements, higher local fines and an explicit private right of action. Staff noted the state statute was scheduled to take effect in January 2026, and the city ordinance is intended to complement and, in some respects, exceed the state standard.

FAS said it would begin outreach and education if the council adopts the ordinance: update consumer‑protection webpages, mail and phone outreach to businesses and residents, provide informational cards at community centers, libraries and clinics, and translate materials into high‑priority languages. FAS also told the committee it expects to absorb enforcement workload within existing staff capacity for 2025 and will reassess resource needs at the end of the year.

The mayor’s office, FAS and council staff asked the committee for timely consideration so the ordinance could be adopted before the next budget cycle; the city transmitted legislation for council consideration. Committee members welcomed the proposal, asked about coordination with community groups (including legacy Black homeowner organizations and county partners), and pressed for clear public education channels to reach at‑risk homeowners.

Discussion only at the community meeting; the ordinance has been transmitted and awaits council action. If adopted, the ordinance will add local disclosure, appraisal and cancellation protections for homeowners approached with unsolicited purchase offers, establish civil fines, and create a private right of action for homeowners.