California has enacted a temporary ban on lowball offers for homes in fire-affected areas
This order is aimed at preventing speculators from taking advantage of people who are already dealing with so much loss. It covers places like Malibu and Pacific Palisades, where the damage has been severe.
The wildfires have been raging for over a week, burning thousands of acres and destroying homes. Sadly, at least 25 lives have been lost. Newsom emphasized that during such tough times, the last thing families need is greedy investors trying to profit from their pain.
The new rule bans any offers below the fair market value as of January 6, 2025, which is the day before the fires started. This move is similar to what Hawaii did after their wildfires last year.
If anyone breaks this order during the state of emergency, they could face a fine or even jail time. Newsom is determined to protect working-class neighborhoods like Altadena, where many residents have deep roots in the community.
Even in upscale areas, not everyone is wealthy. A young woman from the Palisades shared her story of having to evacuate her home, highlighting that many in her building are just regular workers.
There are also worries about rental prices skyrocketing as people look for new places to live. A real estate expert pointed out that some landlords are trying to take advantage of the situation by raising rents. He stressed that now is the time to support each other, not to profit from others’ misfortunes.
