|
|
Hello CVAR Members,
C.A.R. Communications issued a warning regarding price gouging.
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) has been made aware of some rental listings, both on and off the MLS, where lease prices have increased by 25 percent or more since the onset of the wildfires in Southern California. REALTORS® should be aware and advise their clients that raising the price of essential goods and services, including housing, by more than 10 percent during a state of emergency violates California’s anti-price gouging statute and is prohibited by law.
Many evacuees and homeowners who have lost their properties are in urgent need of housing. In these circumstances, real estate professionals have a responsibility to ensure rental prices remain fair and compliant with California’s Penal Code 396(e), which prohibits increasing the rental price advertised, offered or charged for housing by more than 10 percent after a declaration of emergency.
C.A.R. has created the following resources to help address price gouging:
The California Attorney General also issued a Consumer Alert on price gouging following a state of emergency declaration in Los Angeles County and an FAQ on price gouging.
The Department of Real Estate has stated that it will diligently investigate complaints of unlawful price gouging related to rental housing by licensees and will take appropriate disciplinary action if the evidence warrants.
Additionally, violators of the price gouging statute are subject to criminal prosecution that can result in a one-year imprisonment in county jail and/or a fine of up to $10,000. Violators are also subject to civil enforcement actions including civil penalties of up to $2,500 per violation, injunctive relief, and mandatory restitution. The Attorney General and local district attorneys can enforce the statute.
Anyone who feels they are experiencing price gouging following a wildfire can file a complaint with the Attorney General’s office by calling 1-800-952-5225. Referrals to a lawyer also can be made by contacting the California State Bar at 866-442-2529 or visiting calbar.ca.gov.
Citrus Valley Association of REALTORS® 504 E. Route 66, Glendora, CA 91740 8229 Rochester Ave, Suite 120 Rancho Cucamonga, CA 91730 909.305.2827 | www.cvar.net |