California Gov. Gavin Newsom, D, signed an executive order this week to stop what he calls predatory real estate investors from taking advantage of wildfire victims. The order makes it illegal for anyone to make an unsolicited offer on property for an amount less than the fair market value in areas impacted by the Palisades and Eaton Fires for the next three months.

Newsom said the ban comes after hearing from people in the community who’ve received unwelcome and unfair offers.

“This predatory behavior is disgusting at the best of times and of course here in the midst of this tragedy, it’s disgraceful,” Newsom said in a video posted to X.

Today, I signed an executive order prohibiting greedy land developers from ripping off LA wildfire victims with unsolicited, undervalued offers to buy their destroyed property.

Make no mistake — this is a prosecutable crime. pic.twitter.com/FhrqEhaaE0

— Governor Newsom (@CAgovernor) January 15, 2025

The Los Angeles area remains under a state of emergency, which means the order took effect immediately as it was announced Tuesday, Jan. 14.

Those who fail to comply can get up to six months in prison, a $1,000 fine, or both.

The ban, which is modeled after a similar order made by Hawaii Gov. Josh Green, D, for the Lahaina wildfires, is getting some criticism from Sen. Ted Cruz, R-Texas.

“Now, Dem politicians are making it harder for those devastated by the wildfires to sell their destroyed properties. This will only hurt the victims,” Cruz said on X.

Misguided CA policies (1) limited fire mitigation efforts, (2) produced water shortages & (3) under-funded fire fighters.

Now, Dem politicians are making it HARDER for those devastated by the wildfires to sell their destroyed properties.

This will only hurt the victims. https://t.co/vLpSmQKZQm

— Ted Cruz (@tedcruz) January 15, 2025

Newsom responded to Cruz, “Our executive order doesn’t prevent anyone from selling their property. It prohibits scammers from making unsolicited offers to buy property for pennies on the dollar.”

Openly shilling for scammers and bottom feeder land speculators is a weird play — even for you, Ted.

Our Executive Order doesn’t prevent anyone from selling their property.

It prohibits scammers from making unsolicited offers to buy property for pennies on the dollar. https://t.co/agSnPwT1d4

— Gavin Newsom (@GavinNewsom) January 15, 2025

The disaster left homeowners with several questions about insurance coverage.

State Farm reversed its initial plan to cancel hundreds of policies for homes in the Pacific Palisades over the summer to avoid “financial failure,” but is now offering renewals for policy holders in the Los Angeles area.

AccuWeather estimates the total damage and economic loss from the wildfires is at least $250 billion.

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