CALIFORNIA ASSEMBLY BILL 851
Real Property Transactions Wildfire Unsolicited Offers
What is Assembly Bill 851
Effective immediately, California Assembly Bill 851 was enacted in response to devastating wildfires in Los Angeles and Ventura counties. The law aims to protect homeowners in disaster-affected areas from predatory real estate practices, specifically unsolicited offers to buy their property at below-market prices. It formalizes and extends emergency protections originally issued by the Governor, ensuring fair treatment for vulnerable homeowners during recovery.
A few highlights and key benefits for Assembly Bill 851 include:
Unsolicited offer to purchase - Means any offer to purchase a property made by text, email, call, mail, or other means of communication, unless the property is listed for sale by the owner or their agent on an MLS or public marketing platform. Or the owner placed a “for sale” sign on the property or advertised the property for sale in a print publication or a flyer posted in a public place. Unsolicited Offers Prohibited - Buyers cannot make unsolicited offers to purchase residential property in designated fire-affected ZIP codes until January 1, 2027. Mandatory Compliance Attestation - Buyer and seller must sign and record an attestation confirming the offer was not unsolicited before title transfer. Seller Cancellation Rights - Sellers can cancel contracts entered into due to unsolicited offers for up to 4 months after signing, with reimbursement of purchase price and improvements. Penalties for Violations - Civil penalties up to $25,000, misdemeanor charges, and possible license discipline for real estate professionals. Affected Areas - Includes areas impacted by the Eaton and Palisades fires in Los Angeles and Ventura Counties. (Zip Codes: 90049, 90263, 90265, 90272, 90290, 90402, 91001, 91024, 91103, 91104, 91106, 91107, 91301, 91302, or 91320)
Why it matters
AB 851 is designed to protect families during one of the most vulnerable times—recovering from a wildfire disaster. When homes are damaged or destroyed, owners often face immense financial and emotional stress, making them targets for predatory buyers offering quick, below-market deals. By restricting unsolicited offers and providing clear cancellation rights, this law ensures homeowners have the time and security to make informed decisions about their property. It’s about fairness, transparency, and giving communities the chance to rebuild without exploitation.
https://www.clta.org/uploads/1/5/2/2/152207072/2025_summary.pdf As shown on page 12 of the 2025 CLTA Summary of Legislation
1
Find more important Assembly Bill 851 details here: https://calmatters.digitaldemocracy.org/bills/ca_202520260sb79
Information deemed reliable but not guaranteed. Consult your legal or real estate professional regarding your specific situation. © 2026 Chicago Title
Made with FlippingBook - professional solution for displaying marketing and sales documents online