Estate sale companies drop estate deal with Coran
A group of real estate companies and their agents are closing their doors in an attempt to turn around their fortunes after the US Supreme Court overturned a previous ruling that struck down California’s ban on sale of a large amount of real property to non-citizens.
The estate industry has been in a tailspin since the US Court of Appeals for the Ninth Circuit ruled in June that the state’s prohibition on foreign nationals buying large blocks of real properties was unconstitutional, and that the Supreme Court should have struck it down.
While there are still a handful of companies in the real estate industry that will continue to operate in California, many others have been ordered to close their doors and said they would no longer handle their own sales.
In a letter sent to clients, the Association of California Real Estate Associations (ACREA), the trade group representing the most active and well-known California estate agents, said it was closing its doors.
ACREA’s letter to clients said that its members are closing the doors of agents and representatives to comply with the court ruling and the Trump administration’s latest effort to limit the number of people in the country who can buy large blocks.ACREAs letter said:The Trump administration has also instructed state governments to begin implementing the so-called moratorium on foreign buyers in California and elsewhere, in which some state governments are expected to enact new rules that would impose restrictions on the number and type of people that can buy homes and apartments.
The government has said it intends to follow the Supreme Courts ruling.
A spokesman for the Attorney General’s office said the Trump government would continue to enforce existing federal and state laws against foreign buyers and was confident that it would prevail in the appeals court case.ACRETA, which represents many California agents, also said it had agreed to drop its appeal of the Ninth Cir.
ruling in 2018, but would continue its fight against the ban.
A federal judge in Sacramento recently ruled that the ban on foreign ownership of large tracts of land was unconstitutional.ACreta has said that many of the agents it represents have experienced significant financial losses as a result of the ban, and they have sought to recoup some of those losses by raising funds for a new real estate brokerage firm.
It is unclear whether other real estate groups will follow suit.