Seattle Passes Ban on Predatory Home-Buying

Seattle King County REALTORS® was proud to support legislation in Seattle sponsored by REALTOR®-supported Mayor Bruce Harrell, Councilmember Joy Hollingsworth, and Councilmember Mark Solomon to prohibit predatory home-buying.

The legislation will encourage prospective home-sellers to consult and retain experts like REALTORS® before entering a real estate transaction.

The legislation establishes vital consumer protections for homeowners targeted by unsolicited offers to purchase residential property. It is a thoughtful and necessary response to the growing prevalence of predatory home-buying practices that disproportionately affect vulnerable homeowners, particularly seniors, those facing financial distress, and communities of color.

Specifics include:

• Requires clear disclosures to homeowners before a purchase contract is signed, including notice of their right to an  independent appraisal, legal counsel, and representation by a
  licensed real estate broker.
• Provides a meaningful cancellation window, empowering homeowners to reconsider offers made under pressure or without full market exposure.
• Establishes enforcement mechanisms and a private right of action, ensuring accountability for bad actors who exploit gaps in consumer awareness.

The legislation complements existing state law while tailoring protections to Seattle’s unique housing market and equity goals. It aligns with the City’s broader anti-displacement strategy and reinforces the importance of informed decision-making in residential transactions.