New protections will help prevent deceptive and unfair homebuying tactics that contribute to displacement and loss of generational wealth
Seattle – Today, Mayor Bruce Harrell announced new legislation to create new regulations aimed at reducing predatory homebuying practices in Seattle and creating new consumer protections for homeowners.
The legislation is a result of Mayor Harrell’s Executive Order issued earlier this year to strengthen the City’s efforts to prevent displacement and help keep communities in place.
“Being born and raised in the Central District and serving as a representative for South Seattle on the City Council, I’ve seen first-hand how exploitative homebuying practices have robbed families of generational wealth opportunities and pushed long-time neighbors out of the community,” said Mayor Harrell. “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. These new protections promote transparency, fairness, and accountability, ensuring homeowners know their rights while helping keep Seattle’s vibrant, diverse communities rooted in place.”
Predatory homebuying practices are unsolicited offers for homes that are not currently on the market. They often 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. Predatory homebuying often involve aggressive and heavy-handed tactics to pressure homeowners to sell their property.
Protections in the legislation include:
- Requires potential buyers to provide information to homeowners about their rights, including how to access fair market value of home; the owner’s right to appraisal, with buyer responsible for cost of appraisal; and right to hire real estate agent and seek legal counsel.
- Allows homeowner to cancel purchase contract within 10 business days after signing or 10 days after receiving appraisal.
- Gives the City the ability to fine businesses or individuals who do not comply with new regulations.
- Establishes a private right of action if a buyer fails to comply with City ordinance.
The protections in the new legislation closely align with State House Bill 1081, but imposes more stringent fines on violators, provides more notice to property owners of their rights and legal protections, provides them more time to cancel the purchase contract, and provides residential property owners a private right of action.
In January, Mayor Harrell issued an Executive Order to improve implementation of the City’s anti-displacement programs and resources to complement the growth strategy in the One Seattle Comprehensive Plan Update, which focuses on expanding housing supply and diversity to lower costs and improve affordability.
The legislation has been transmitted to the Council’s Housing and Human Service Committee for consideration.
What People Are Saying:
Councilmember Mark Solomon
“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. 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.”
Councilmember Joy Hollingsworth
“This legislation adds essential protections for longtime legacy homeowners, particularly those vulnerable to deceptive practices in neighborhoods experiencing intense development. It reinforces the anti-displacement strategies outlined in our Comprehensive Plan, and I look forward to continuing this important work. I’m grateful to Mayor Harrell for championing these efforts to protect our communities and for helping create a path for our residents to age in place with dignity and stability.”
Director Rico Quirindongo, Office of Planning and Community Development
“This legislation is a critical step toward protecting homeowners from predatory real estate practices that fuel displacement and erode generational wealth. For too long, Black and Brown communities have been targeted by unsolicited offers that exploit lack of access to information and legal support. By ensuring transparency, appraisal rights, and legal recourse, this ordinance puts power back in the hands of residents and helps keep families rooted in the neighborhoods they’ve built and sustained for generations.”
Chukundi Salisbury, Executive Director, Black Legacy Homeowners
“For too long, Black homeowners in Seattle have been targeted, pressured, and pushed out by predatory buyers who see our homes as profit, not legacy. This legislation is about putting power back in the hands of our elders, our families, and our community. At Black Legacy Homeowners, we’ve seen how some high-pressure, shady deals can tear apart neighborhoods and erase decades of hard-earned equity. These protections will help Black homeowners stay rooted and strong in the face of gentrification and displacement.”