Broker Risk Management (“BRM”) is evaluating the risks and issues arising from the devastating Los Angeles fires. Attached is an Executive Order N-7-25, wherein the Governor of the State of California has issued an Order prohibiting the unsolicited offer to an owner of the real property located in certain zip codes in Los Angeles or to acquire an interest in that real estate for less than the fair market value as established on January 6, 2025.

The Department of Real Estate will be pursuing licensing violations against any real estate agents involved in violating this Executive Order.

Agents should also be aware that “price gouging” in wildfire areas is illegal and constitutes a crime. The “price gouging” laws prohibit increases beyond 10% of any rental housing, including hotels and motels, as well as leasing of residential homes, and consumer food items and other goods for thirty (30) days from the date the emergency was declared. The Governor proclaimed a State of Emergency in Los Angeles and Ventura Counties due to the fires on January 7, 2025.

BRM will be issuing a risk management tip on Friday, January 17, 2025, addressing legal risks relating to the fires in more detail.

State of California’s Executive Order Arising out of the Fires