Seattle’s housing market is fraught with affordability and inventory concerns, making it a prime target for those who use shady tactics to scoop up homes for less than market value.
City leaders recently introduced a legislative proposal that aims to protect homeowners — including seniors — from predatory home-buying practices. Seattle Mayor Bruce Harrell said the goal is to keep residents from being “robbed” of generational wealth-building opportunities and limit gentrification that pushes longtime residents out of the city.
In January, Harrell issued an executive order that sought to prevent displacement and keep communities intact. Last week, he introduced legislation to that effect, which has been passed to a Seattle City Council committee for consideration.
“Homeowners — especially seniors, low-income families, and those in historically marginalized communities — deserve to stay in their homes without being targeted by deceptive or aggressive buyers,” Harrell said in a statement.
“These new protections promote transparency, fairness, and accountability, ensuring homeowners know their rights while helping keep Seattle’s vibrant, diverse communities rooted in place.”
According to the city’s announcement of the proposed law, predatory home-buying practices include “unsolicited offers for homes that are not currently on the market.” They frequently target “vulnerable homeowners, including the elderly or financially distressed, offering cash for their homes that may be lower than what they would otherwise receive on the open market.”
These unsolicited offers may also involve “aggressive and heavy-handed tactics to pressure homeowners to sell their property,” the announcement explained.
New protections for vulnerable homeowners
If passed, the law would implement several protective measures. Buyers would be required to inform prospective sellers of their rights, such as:
- Obtaining fair market value for their property
- Receiving an appraisal and the buyer’s responsibility for appraisal costs
- Hiring a real estate agent and/or legal counsel
Homeowners would be allowed to cancel the sale within 10 days of signing a purchase contract or within 10 days after receiving an appraisal. Additionally, the law would give the city recourse to fine businesses or individuals who don’t comply, and it establishes a private right of action for the homeowner to sue based on alleged buyer violations.
Other city officials have voiced their support for the proposal.
“As a south Seattle representative and neighbor, one of my top priorities is to ensure that Black families in my district are able to build and pass on generational wealth in the same neighborhoods where they have lived for decades,” Seattle Councilmember Mark Solomon said in a statement.
“That’s why I fully support this legislation to ensure that families can stay in their homes and are not displaced, especially by deceitful practices, when so many are already struggling amid a housing crisis.”
Builds on state protections already in place
Seattle’s bill is not the first proposal of its kind. The state of Washington recently passed H.B. 1081, which will go into effect in 2026. It also mandates, among other things, that “when a potential buyer actively solicits the purchase of real property not currently listed on the market, the owner has the right to an appraisal by a licensed appraiser, which must be included in the purchase contract.”
The statewide bill does not apply to home sales in which the buyer or seller is represented by a licensed real estate broker.
Seattle officials clarified that their bill builds on the new state law by imposing larger fines on violators while giving more notice to homeowners of their legal rights and protections.
Earlier this month, legislators in Pennsylvania began reviewing a bill that’s also designed to protect homeowners from losing their home and accumulated wealth. The so-called “Cephas bill” would mandate in-person financial counseling before a borrower can obtain a reverse mortgage.
The proposal, which is under consideration by the Pennsylvania State Senate, drew pushback from the National Association of Reverse Mortgage Lenders. The trade group believes that the bill incorrectly targets loan processors, rather than approved counselors, while also placing strain on the limited number of Home Equity Conversion Mortgage counselors in the state.
English (US) · 