CLTA Negotiates Amendments to Unsolicited Offer Legislation

​Assembly Bill AB 851 (McKinnor) was amended to delete a six months right to cancel a sale in the wildfire areas of Los Angeles. 

​Instead, the bill now prohibits a buyer from making an unsolicited offer to purchase any one to 4 family residential real properties in the ZIP Codes in the County of Los Angeles covered by the Governor’s fire-related executive orders, and requires that a buyer and seller would have to execute a written attestation affirming that the sale is not the result of a prohibited unsolicited offer prior to the close of escrow. An attestation would be required to be attached to the deed or other conveyance of title when recording the transfer of title. The amendments were the result of negotiations with CLTA and the California Association of Realtors, which had both expressed concerns with the bill’s language as introduced.