Does AB 851 apply to my zip code?

AB 851 covers residential property in specified Los Angeles County zip codes designated under Governor Newsom's Executive Orders N-7-25 and N-17-25, which were tied to the Eaton and Palisades wildfires beginning January 7, 2025. The primary affected areas include Pacific Palisades (90272) and the Altadena and Pasadena areas impacted by the Eaton Fire. If your property is in a covered zip code, you're protected until the law sunsets on January 1, 2027. Contact the California DRE or a licensed real estate professional to confirm your specific address.

Can I still accept a cash offer from an investor under AB 851?

Yes — AB 851 doesn't prohibit cash transactions or investor purchases. It prohibits the practice of a buyer contacting you without your invitation and making a below-market offer. If you list your home through the MLS, post a for-sale sign, or publicly indicate you're open to offers, any response you receive is considered 'solicited' and fully permitted. The law targets buyers who approach fire-affected homeowners who haven't indicated they want to sell.

What if I already signed a contract that resulted from an unsolicited offer?

If you entered into a purchase agreement because of an unsolicited offer, California law gives you the right to cancel that contract within a 4-month window — potentially even after closing. You also have the right to pursue civil damages. If you're in this situation, consult a real estate attorney promptly and consider filing a complaint with the DRE at LAFires@dre.ca.gov.

What is the attestation I'll be asked to sign at closing?

Before title can transfer on a covered property, both buyer and seller must sign a written attestation confirming the purchase agreement was not the result of an unsolicited offer. Your escrow or title company will include this in the closing package — it's attached to the deed as a condition of recording. Signing it creates a legal presumption that the offer was seller-initiated, which can only be challenged with clear and convincing evidence.

Where can I report an unsolicited offer in a fire-affected area?

Report predatory offers to the California Department of Real Estate at LAFires@dre.ca.gov. If a licensed agent or broker was involved, that professional is deemed to have violated their licensing law and can face discipline in addition to misdemeanor charges and up to a $25,000 civil penalty per violation.