California Expands Efforts to Ban Unsolicited Home Purchase Offers After Wildfires

In the aftermath of wildfires, California homeowners face not only loss and displacement but also unwanted offers from opportunistic buyers hoping to acquire burned or damaged properties at bargain prices. The issue the Legislature addressed this fall was simple: how to protect vulnerable homeowners from being pressured into quick sales when they’re least able to make major decisions.

The result is new requirements pursuant to Assembly Bill 851, signed by Governor Gavin Newsom in October 2025. The new law prohibits unsolicited purchase offers for residential property in wildfire-affected ZIP codes in Los Angeles and Ventura counties. It also establishes a new recording requirement, a signed buyer–seller attestation must be recorded with the deed confirming that the sale was not the result of an unsolicited offer. This provision creates a legal presumption that any sale lacking such an attestation may have been improperly solicited.

Picture a homeowner sifting through fire debris when a stranger appears, offering fast cash and a promise to “take the property off your hands.” Desperate sellers might agree to unfair terms, only to realize later that they sold for a fraction of the home’s value. AB 851 stops this cycle by banning direct solicitation and requiring recorded proof that the sale was voluntary and informed. The law also gives sellers a four-month right to cancel if they entered a contract due to an unsolicited offer, a powerful safeguard against pressure tactics. Importantly, the law clarifies that failure to record the attestation doesn’t invalidate the deed or affect subsequent bona fide purchasers, ensuring title stability.

The conclusion is that California is drawing a clear line: disaster survivors deserve protection, not predation. For real estate consumers, this means greater fairness and transparency in post-disaster markets. It empowers homeowners to make decisions without coercion, assures buyers that transactions are legitimate, and reinforces ethical standards for all real estate professionals operating in recovery zones.