In the wake of the devastating wildfires that recently swept through Southern California, property owners across Los Angeles have become targets of unsolicited, low-ball offers to purchase their damaged properties. Recognizing the vulnerability of displaced homeowners and business owners, Governor Gavin Newsom issued Executive Order N-7-25 to provide legal protections against predatory real estate practices.
As a firm focused on real estate law, Strategy Law is committed to ensuring property owners are informed and protected during this critical time.
Understanding Executive Order N-7-25
Effective as of January 14, 2025, the Order prohibits unsolicited offers to purchase properties in fire-impacted zip codes below their fair market value as of January 6, 2025. This temporary but powerful safeguard aims to prevent opportunistic buyers and real estate speculators from exploiting homeowners and business owners still reeling from disaster-related losses.
Violators of this order may face misdemeanor charges, including fines up to $1,000 and/or six months of imprisonment.
What Constitutes an Unsolicited Offer?
An unsolicited offer includes any outreach, via text, email, call, or mail, to a property owner whose property is not listed for sale. These offers often come with promises of quick closings, all-cash deals, or pre-closing cash advances. While they may sound attractive, they often significantly undervalue the property and can pressure vulnerable owners into making rushed decisions.
Recognizing Unfair or Fraudulent Real Estate Practices
Real estate law professionals advise watching out for:
- Offers that threaten lack of insurance coverage or claim urgency.
- Buyers who are vague or unwilling to answer questions.
- Offers that are substantially below pre-fire market values.
- Individuals presenting themselves as “helpers” or “investors” promising no fees or commissions.
If you’ve received such an offer, report it to the Department of Real Estate (DRE) at LAFires@dre.ca.gov or to the California Attorney General’s Office.
What You Can Do as a Property Owner
You have the legal right to sell your property, but the key is doing so on your terms, free from coercion or manipulation. Take time to:
- Consult with a licensed real estate attorney to evaluate any offers.
- Engage a trusted real estate agent to help you determine fair value.
- Explore your options for rebuilding with the help of lenders, insurance providers, and local aid programs.
- Ensure your contractor is licensed by checking with the Contractors State License Board (CSLB).
Why Legal Guidance Matters
Navigating real estate decisions after a natural disaster is stressful. At Strategy Law, our real estate law team provides sound legal guidance to help you:
- Evaluate the legality and fairness of offers.
- Understand your rights under Executive Order N-7-25.
- Connect with resources such as insurance claims, mortgage relief, and legal aid.
- Avoid legal pitfalls that may arise from hastily signed contracts or unclear agreements.
Conclusion
Executive Order N-7-25 reinforces that real estate law is not just about transactions, it’s about protection, fairness, and justice. If you or someone you know has received an unsolicited, undervalued offer for property in Los Angeles’s wildfire-affected areas, take action. Protect your rights. Don’t sell under pressure.
For guidance tailored to your situation, contact Strategy Law LLP today. Our attorneys are here to help you make informed, empowered decisions.
This blog is written as of August 2025. Recommendations and legal requirements are changing rapidly, so please continue to review our legal updates or review postings on relevant government websites.
All blogs on this site are for educational purposes only, do not constitute legal advice or opinion, and should not be applied to your situation, or any specific situation, without consultation with counsel. Strategy Law, LLP does not provide any legal advice concerning any matter discussed in a blog except upon formal engagement including, without limitation, execution of Strategy Law, LLP’s formal legal services agreement, and with respect to specific factual situations. No blog constitutes a guaranty, warranty, or prediction regarding the result of any legal matter discussed in the blog or any representation
