Home » California attorney general says bidding wars not exempt from price-gouging rules – Jobsmaa.com

California attorney general says bidding wars not exempt from price-gouging rules – Jobsmaa.com

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California Atty. Gen. Rob Bonda warned landowners Saturday Price rise The rules in place because of the Los Angeles County fire also apply in cases where bidding wars erupt against their properties.

Under those rules, when the governor declared a state of emergency, local landlords could not charge more than 10% more than what they normally charged or advertised before the crisis.

Many landlords have tried to charge above those amounts anyway, posting listings online that sometimes increase by 50% or even more than 100%.

The rental ads have drawn outrage from politicians, tenant groups and some landlord organizations, all of whom have called for tougher enforcement.

Bonda has promised Proceed with the caseBut there is confusion among some agents, property owners and tenants as to whether the law applies to instances of bidding wars.

In some cases, fire victims — either at the insistence of the property owner or of their own volition — have submitted offers above the starting price, desperate to find homes in a tight market after fires destroyed their homes.

In a news release on Saturday, the Attorney General's Office sought to clear up any confusion, clarifying that the price gouging law applies to bidding wars, and that landowners cannot accept offers that exceed the limits set by the law.

“The bottom line is this: Landlords cannot charge or accept rent that exceeds the 10 percent limit set by California's price gouging law, even if they find someone willing to pay it,” Bonta said in a statement. “Our Legislature has enacted strong protections for renters in times of crisis, and I am committed to making sure those protections are followed and respected.”

If convicted of price gouging, landlords face up to a year in jail and a $10,000 fine per violation. The Attorney General's Office urged Californians who believe they have been affected by price gouging to report them at this address. oag.ca.gov/report.

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