Section § 2079.26

Explanation

In certain California ZIP Codes, you can't make an unsolicited offer to buy a home. Before buying, both parties must confirm in writing that they didn't make or receive any unsolicited offers. If they fail to do so, it's assumed the offer was solicited unless proven otherwise. This confirmation must be recorded with the property deed. Real estate agents violating this rule break licensing laws. The Attorney General and other officials can enforce these rules. Sellers may cancel a contract made from an unsolicited offer within four months, and violations can lead to penalties or even criminal charges. A person includes individuals, companies, and organizations, and the law specifies what counts as unsolicited offers. This law becomes active 30 days after the act is effective and ends on January 1, 2027.

(a)CA Civil Law Code § 2079.26(a) A person shall not make an unsolicited offer to purchase residential real property in the 90049, 90263, 90265, 90272, 90290, 90402, 91001, 91024, 91103, 91104, 91106, 91107, 91301, 91302, or 91320 ZIP Codes.
(b)Copy CA Civil Law Code § 2079.26(b)
(1)Copy CA Civil Law Code § 2079.26(b)(1) Prior to the transfer of title in the purchase of residential real property described in subdivision (a), the buyer and seller shall execute a written attestation affirming that the purchase agreement was not entered into as a result of an unsolicited offer in violation of subdivision (a).
(2)CA Civil Law Code § 2079.26(b)(2) The signed attestation described in paragraph (1) shall create a presumption that the accepted offer was solicited by the seller of the property, unless there is clear and convincing evidence to the contrary.
(3)CA Civil Law Code § 2079.26(b)(3) The buyer shall record the signed attestation described in paragraph (1) as an attachment to the deed or other conveyance of title when recording the transfer of title.
(4)CA Civil Law Code § 2079.26(b)(4) Failure to record the signed attestation described in paragraph (1) as an attachment to the deed or other conveyance of title shall not affect any constructive notice imparted by proper recordation of the deed or other conveyance and shall not affect the rights of any subsequent bona fide purchaser or encumbrancer.
(c)CA Civil Law Code § 2079.26(c) A person licensed pursuant to Division 4 (commencing with Section 10000) of the Business and Professions Code who makes a written offer on their own behalf, or on behalf of another person while conducting licensed activity, in violation of this section shall be deemed to have violated that person’s licensing law.
(d)CA Civil Law Code § 2079.26(d) The Attorney General, a county counsel, city attorney, or a district attorney may bring a civil action to enforce this section.
(e)Copy CA Civil Law Code § 2079.26(e)
(1)Copy CA Civil Law Code § 2079.26(e)(1) A seller shall have the right to cancel a purchase agreement entered into in violation of this section, exercisable until four months after the date of execution of the contract.
(2)CA Civil Law Code § 2079.26(e)(2) A person who violates subdivision (a) may be assessed a civil penalty not to exceed twenty-five thousand dollars ($25,000) per violation. The civil penalty may be assessed and recovered in a civil action brought in any court of competent jurisdiction.
(3)CA Civil Law Code § 2079.26(e)(3) A person who violates subdivision (a) shall be guilty of a misdemeanor and, upon conviction thereof, shall be punishable by a fine not to exceed one thousand dollars ($1,000) or by imprisonment not to exceed six months.
(4)CA Civil Law Code § 2079.26(e)(4) The remedies and penalties provided by this subdivision are nonexclusive and are in addition to any other remedies or penalties available under other laws.
(f)CA Civil Law Code § 2079.26(f) For purposes of this section:
(1)CA Civil Law Code § 2079.26(f)(1) “Person” includes a corporation, firm, partnership, or association existing under or authorized by the laws of this state or any other state, or any foreign country.
(2)CA Civil Law Code § 2079.26(f)(2) “Unsolicited offer to purchase” means any offer to purchase a property made by any person by text message, email, telephone call, mail, or other means of communication, unless either of the following conditions are met:
(A)CA Civil Law Code § 2079.26(f)(2)(A) At or before the time that the offer is made, there is public indication that the owner is willing to sell the property, including, but not limited to:
(i)CA Civil Law Code § 2079.26(f)(2)(A)(i) The property is listed for sale by the owner or their agent on a multiple listing service or in any publicly available marketing platform.
(ii)CA Civil Law Code § 2079.26(f)(2)(A)(ii) The owner placed a “for sale” sign on the property or advertised the property for sale in a print publication or a flyer posted in a public place.
(B)CA Civil Law Code § 2079.26(f)(2)(B) The offer was made prior to the enactment of this section.
(g)CA Civil Law Code § 2079.26(g) The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(h)CA Civil Law Code § 2079.26(h) This article shall become operative 30 days after the effective date of the act that added this section.
(i)CA Civil Law Code § 2079.26(i) This article shall be repealed on January 1, 2027.