In response to the ongoing recovery efforts following the devastating Los Angeles area firestorms, Governor Gavin Newsom has extended protections against predatory land speculation through July 1, 2025, via a new executive order issued April 14, 2025.
This order continues the ban on unsolicited, undervalued real estate offers targeting firestorm survivors—an important safeguard for families facing pressure to sell their homes during a vulnerable time.
Rental price restrictions are still in place under a separate executive order.
What’s Prohibited Under the Executive Order
Licensed and unlicensed real estate investors, agents, and speculators are prohibited from making unsolicited offers to purchase residential property at prices below fair market value as of January 6, 2025, in the specified ZIP codes impacted by the fires. This includes aggressive “we pay cash” tactics and other predatory approaches aimed at distressed homeowners.
Violators may be subject to criminal penalties (misdemeanor: up to 6 months in jail and/or $1,000 fine).
Where the Ban Applies – Affected ZIP Codes
The order applies to properties located in the following fire-impacted ZIP codes:
- Los Angeles: 90019, 90041, 90049, 90066
- Malibu: 90265
- Pacific Palisades: 90272
- Topanga: 90290
- Santa Monica: 90402
- Altadena: 91001
- Sierra Madre: 91024
- Sunland: 91040
- Pasadena: 91103, 91104, 91106, 91107
- Woodland Hills: 91367
- Lancaster: 93535, 93536
These areas experienced significant loss from the fires and are now protected from exploitative speculative real estate activity.
What This Means for Real Estate Professionals
This extension reinforces that no unsolicited offers—especially at below-market prices—should be made in the affected areas unless initiated by the homeowner. Real estate professionals operating in or near these zones should:
- Avoid door knocking, cold calling, or mailers targeting distressed sellers.
- Refrain from engaging in any off-market offer activity in the listed ZIP codes unless explicitly invited.
- Maintain documentation and transparency for any homeowner-initiated discussions.
While Orange County is not subject to this specific order, professionals should remain cautious when marketing to homeowners in neighboring regions or working with displaced fire survivors.
Does This Affect Rent Increases?
No. The April 2025 executive order only addresses sales-related activity (i.e., unsolicited purchase offers).
However, rental price restrictions are still in place under a separate executive order:
- Executive Order N-23-25, issued March 7, 2025, extends price gouging protections for rental housing until July 1, 2025.
- Landlords in affected counties, including all of Orange County, must comply with:
- A 10% cap on rent increases, regardless of lease term length.
- No evictions to re-list at a higher price.
- Continued use of HUD Fair Market Rent (FMR) calculations, unless exempt (e.g., newly constructed buildings or qualifying LA luxury ZIP codes).
Important distinction: Even exempt properties cannot raise prices above previous rates if the home was rented or listed within the past year.
How to Report Violations
Survivors who receive unsolicited or undervalued offers can report them to:
📧 [email protected]
📞 California Department of Real Estate
How We Can Help
Lucas Real Estate – REALTOR® and Attorney Devin Lucas and REALTOR® and CPA Courtney Lucas – are your local experts in property management and real estate sales and acquisitions in Newport Beach, Costa Mesa, Newport Coast, Corona del Mar, and all of Orange County.
Want to discuss real estate laws, tax planning, tax considerations or real estate legal matters? We conduct paid one-hour confidential consultations via Zoom, walking families through Prop 19 impacts, potential tax exposure, capital gains considerations, and the pros and cons of gifting, sales, LLCs, or hybrid solutions. For discussions requiring real estate legal advice, private family sales, family transfers, or tax-related matters, please schedule a paid one-hour consultation via Zoom, phone, or in person using this calendar (Book a consultation here.) Upon booking, you’ll receive instant confirmation and a Zoom link if applicable.
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-Devin Lucas
Lucas Real Estate Group is a top-rated residential real estate team based in Newport Beach, led by Devin R. Lucas – a Real Estate Attorney, Broker, and REALTOR®, and Courtney Lucas – CPA and REALTOR®. We specialize in trust sales, intra-family transfers, luxury transactions, and confidential representation, offering unmatched experience in California property tax law, Proposition 19, and beyond.
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sources:
- Executive Order N-26-25 (located here: https://www.gov.ca.gov/wp-content/uploads/2025/04/Land-Speculation-Extension-EO.pdf)
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