In the charred aftermath of California’s latest devastating wildfires, stories of resilience, compassion, and community support shine brightly. But alongside this resilience, concerns about potential price gouging in the real estate market often spark fear among vulnerable residents. The California Department of Real Estate (DRE) is clear: price gouging is not only unethical but also illegal during declared emergencies. Yet, in a surprising twist, Entar is pleased to report that actual cases of price gouging by real estate agents remain exceedingly rare.
What is Price Gouging?
Price gouging occurs when sellers unfairly increase prices for goods or services beyond a reasonable amount during an emergency. In California, Penal Code Section 396 prohibits raising prices by more than 10% during a declared state of emergency. This law applies to rental housing, hotels, motels, and even consumer goods, with violators facing fines of up to $10,000, a year in jail, or both.
A Few Bad Apples?
Contrary to the sensational headlines that suggest a widespread issue, Entar’s research and experience within the real estate community reveal a different narrative. The majority of agents and brokers adhere to the law and prioritize helping wildfire survivors find stable housing. “The market’s response has been overwhelmingly supportive,” says Corey Chambers, founder of Entar. “Agents and property owners are stepping up, not taking advantage.”
However, isolated cases do exist. For example, in 2018, Melissa “Missy” Echeverria, a property owner and licensed real estate agent, faced charges of price gouging after raising the rent on her Novato property from $5,000 to $9,000 per month. While the legal proceedings garnered attention, it’s worth noting that Echeverria acted as the property owner, not as a representative of a client. No disciplinary action from the DRE was recorded against her in this case.
DRE Takes a Stand
The DRE’s proactive stance ensures that licensed agents who exploit emergency situations face severe consequences. In addition to the legal penalties for price gouging, agents risk losing their licenses, tarnishing their reputations, and facing career-ending scrutiny. Complaints can be filed through the DRE’s website, providing a straightforward mechanism for accountability.
“We encourage licensees to stand with the victims and avoid actions that undermine trust in our profession,” the DRE emphasizes in its recent communication.
Entar’s Commitment to Fairness
At Entar, fairness is not just a legal obligation but a moral imperative. The company has consistently advocated for ethical practices, ensuring clients find not only homes but also a sense of stability and security. This ethos aligns with the broader culture of California’s real estate community, where most agents are driven by a desire to help, especially during crises.
Lessons from the Flames
As California rebuilds from yet another record-setting wildfire season, the focus shifts from survival to recovery. For real estate agents, this means navigating the fine line between market dynamics and ethical obligations. While instances of price gouging make headlines, they are the exception, not the rule.
California’s real estate professionals, backed by the vigilant oversight of the DRE, are proving that integrity can thrive even in the face of disaster. In a world often dominated by stories of greed, this commitment to fairness offers a refreshing reminder of the good that can prevail—even when the heat is on. #ENTAR
Copyright © This free information provided courtesy Entar.com with information provided by Corey Chambers, Broker DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 888-240-2500 or visit WeSellCal.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Text and photos created or modified by artificial intelligence. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.
