Protecting Homeowners –
Especially in Altadena and Pacific Palisades Burn Zones
In times of crisis, like after a wildfire or other disaster, homeowners can be targeted by predatory real estate practices. These often come in the form of calls, emails, or texts that seem helpful but are actually designed to take advantage of people during a vulnerable time. With new legislation like Assembly Bill 1345 (AB 1345) in effect, homeowners in California now have stronger protections against these practices. But it’s still important to know how to identify what’s legitimate and what’s not.
Here’s a guide to help you recognize the red flags and understand what legitimate communication should look like.
What Are Predatory Real Estate Practices?
Predatory practices involve deceptive or unfair tactics to lock homeowners into long-term, restrictive contracts or undervalue their property. Companies like MV Realty, for example, convinced homeowners to sign deals that gave them exclusive rights to list their property for up to 40 years, often in exchange for a small upfront payment. These agreements came with steep penalties and restrictions, leaving many homeowners trapped.
The new law, AB 1345, now prohibits these kinds of agreements in California, providing greater protection for homeowners.
Red Flags to Watch Out For
1. Promises of Fast Cash or “No Hassle” Deals
- Messages offering immediate cash in exchange for the right to sell your home.
- Example: “Get $2,000 upfront today, and let us handle your home sale!”
- Claims of risk-free processes without mentioning legal reviews.
- Example: “No need to worry about lawyers or fine print. We’ll handle it all!”
2. Long-Term or Vague Agreements
- Offers of contracts lasting 10, 20, or even 40 years.
- No clear explanation of the terms or penalties involved.
3. Aggressive Pressure Tactics
- Repeated calls, texts, or emails urging you to act immediately.
- Example: “This offer is only good for 24 hours! Don’t miss out!”
- Emotional appeals aimed at taking advantage of your situation.
- Example: “We know how hard this fire has been for you. Let us make it easier.”
4. Requests for Personal Information
- Asking for sensitive details like your deed information, mortgage account, or Social Security number early in the conversation.
5. Offers to “Record” or “Secure” Your Home Title
- Promising to record agreements as a “security measure.”
- Example: “We’ll record this agreement so you don’t have to worry about anything.”
6. Misleading Claims About Market Value
- Undervaluing your property to pressure you into a quick sale.
- Example: “Your home is only worth $200,000 in its current condition, but we’ll still pay you $10,000 upfront to sign with us.”
7. Mention of Automatic Renewals or Fees
- Agreements that renew automatically or have high cancellation penalties.
- Example: “This agreement will renew unless you pay a $5,000 fee.”
8. Unlicensed or Unfamiliar Companies
- Companies or agents without licenses or a visible online presence.
- You can verify a real estate licensee here
What Does a Legitimate Communication Look Like?
Legitimate real estate professionals will always act with transparency, professionalism, and respect for your time and decisions. Here are some examples of what you should expect:
1. Clear Introduction
- They will provide their name, company, and license number.
- Example: “Hi, this is Sarah Johnson with Johnson Realty Group. I’m a licensed real estate agent in California, and my license number is [1234567].”
2. Reason for Contact
- They will explain why they are reaching out in a straightforward, non-invasive way.
- Example: “I’m reaching out because I noticed your property is in an area affected by recent wildfires. I’d like to offer my assistance if you’re considering selling or need help navigating recovery resources.”
3. Offer of Value, Not Pressure
- They will focus on helping you make informed decisions, not pressuring you.
- Example: “If you’re thinking of selling, I can provide a free market analysis of your home’s value.”
4. Transparent Terms
- They will explain contracts clearly, allow you to ask questions, and encourage you to seek third-party advice.
- Example: “Our listing agreements are 6 months long and can be canceled at any time without penalty.”
5. Invitation to Verify Credibility
- They will provide ways to verify their license and reviews.
- Example: “Feel free to look me up on the Department of Real Estate website. My license is in good standing.”
6. Respectful Tone
- They will not use scare tactics or create urgency.
- Example: “Take your time deciding what’s best for you. If you’d like to talk further, I’m happy to help.”
Examples of Legitimate Messages
Legitimate Text Example:
Hi [Homeowner’s Name], this is Tom Martinez with South Bay Homes. I’m a licensed real estate agent (DRE #9876543), and I’m reaching out to offer assistance to homeowners in your area impacted by the fires. If you’re considering selling or need advice on home recovery options, I’d be happy to help. Feel free to call me at [phone number] or visit our website [website link] for more info.
Legitimate Email Example:
Subject: How We Can Support You After the Fires
Dear [Homeowner’s Name],
I hope this message finds you well. My name is Lisa Carter, and I’m a licensed real estate agent with Coastal Realty (DRE #1234567). I know many homeowners in [area] are facing tough decisions after the recent wildfires, and I’d like to offer my support.
If you’re considering selling your property, I’d be happy to provide a free market analysis or discuss rebuilding options. My goal is to help you make informed decisions that are right for you.
Feel free to reach out by replying to this email or calling me at [phone number]. You can also learn more about our services on our website: [website link].
Take care,
Lisa Carter
What to Do If You Suspect Predatory Behavior
- Don’t sign anything without fully reading the contract and consulting a trusted professional.
- Report suspicious activity to:
- Keep records of all communication, including names, phone numbers, and messages.
How Klapper Group Can Help
At Klapper Group, we’re dedicated to being a trusted resource for homeowners, especially during challenging times. Here’s how we can support you:
- Transparent Guidance: Our team provides honest, straightforward advice with no pressure or hidden terms.
- Market Expertise: We offer free, comprehensive market analyses to help you understand your home’s true value.
- Community Support: As local experts, we know the resources available to help you recover and rebuild.
- Verified Credibility: Our agents are fully licensed and ready to answer your questions. Feel free to verify us through the California Department of Real Estate.
If you need help navigating your options, contact us directly. We’re here to listen, educate, advocate and act as a guide for you every step of the way.