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AB 851 would extend protections for wildfire survivors against unsolicited offers and allow a 4‑month rescission window for home sales
Summary
Assemblymember presented AB 851 to codify Governor Newsom’s executive order banning unsolicited below‑market offers in affected LA ZIP codes and to let sellers within declared disaster ZIP codes rescind residential sales within four months of close of escrow; sponsors said the change would shield survivors from predatory buyers during recovery
Assemblymember McKinner told the committee AB 851 would codify Governor Newsom’s executive order protecting homeowners affected by the January 2025 Eaton and Palisades fires from unsolicited below‑market offers and would extend those emergency protections through January 1, 2027.
The bill would also create a limited four‑month rescission window after close of escrow for sellers of residential properties located within the designated disaster ZIP codes, giving homeowners additional time to decide whether to sell or rebuild. Supporters — including the California Community Land Trust Network and local land‑trust leaders — described survivors being relentlessly targeted by “cold‑call” buyers and investors who approach families at FEMA shelters, leave business cards on damaged property, and phone survivors repeatedly when they are at their most vulnerable.
Testimony included a first‑hand account from a third‑generation Altadena resident who described persistent unsolicited approaches and the emotional pressure survivors experience when they are trying to rebuild. Backers said the rescission window would allow time for survivors to obtain counsel, make insurance and rebuilding decisions, and avoid hasty sales prompted by predatory practices.
There were no witnesses in opposition in the hearing room. Committee members praised the bill’s protections; Senator Perez and others said they would support the measure. The committee later recorded AB 851 as passing to appropriations on a 5–1 vote.
Ending: Sponsors said AB 851 would provide a narrow, time‑limited protection against predatory buyers in ZIP codes affected by the Eaton and Palisades fires; supporters urged the bill to move forward so counties can protect vulnerable homeowners during recovery.
