The “Katy Perry Law” is an informal name for the PERRY Act (Protecting Elderly Realty for Retirement Years Act), a California proposal that would have given homeowners over age 75 a 72-hour cooling-off period after signing a contract to sell their primary residence. It was never enacted. Seniors selling a home in California today still rely on existing mental capacity rules and elder financial abuse statutes rather than any automatic right to cancel.
What the Proposed PERRY Act Would Have Done
The core idea was simple. Any homeowner over 75 selling a primary residence would get a mandatory 72 hours after signing the sales contract to cancel the deal without penalty. The right would have been automatic. The seller would not have had to prove duress, fraud, or lack of capacity to walk away during that window.
The design was preventative. Instead of forcing an elderly seller to hire lawyers and prove cognitive impairment after the fact, the three-day pause would have created built-in time to consult family, an attorney, or a financial advisor before the contract became binding. Supporters framed it as a low-cost safeguard that could head off exactly the kind of drawn-out litigation that gave the proposal its nickname.
Why It’s Called the Katy Perry Law
The name traces to a three-year court fight between pop star Katy Perry and Carl Westcott, an 80-year-old Texas entrepreneur and disabled veteran. In July 2020, Westcott signed a contract to sell his Montecito mansion to Perry and Orlando Bloom for $15 million, then tried within days to back out. His legal team argued he had Huntington’s disease, had undergone a six-hour back surgery less than a week before signing, and was taking opiates multiple times a day, leaving him “of unsound mind” when the contract was presented.
In December 2023, a Los Angeles County Superior Court judge sided with Perry after a bench trial, finding Westcott had sufficient mental capacity to enter the agreement, and ordered specific performance, meaning Westcott had to complete the sale rather than simply pay damages. The facts of the case — an elderly veteran with a degenerative brain disease signing a multimillion-dollar deal days after major surgery — fueled public pressure for a specific statutory protection for senior sellers.
Current Legal Status
The PERRY Act was launched in 2023 and generated significant press, but no version of the bill has advanced through the California legislature. It stalled after its initial rollout and is not law.
It is sometimes confused with California Senate Bill 611 from the 2023–2024 session. SB 611 is a different measure addressing residential rental properties and landlord fees. It has nothing to do with elderly home sellers or cooling-off periods.
What Actually Protects Senior Home Sellers in California
Even without the PERRY Act, California law gives sellers several ways to challenge a real estate contract. These protections apply to anyone, but they tend to matter most when age-related cognitive decline, medication, or a degenerative condition is in play.
Mental Capacity Standards
California Civil Code distinguishes two levels of incapacity. A person “entirely without understanding” has no power to make a contract at all, and any such agreement is void from the start. A person who has some understanding but is “of unsound mind” can have the contract rescinded, but it is not automatically void — the person or their representative has to take affirmative steps to undo it.1Justia Law. California Civil Code Part 1 – Persons With Unsound Mind
Courts look at whether the person was “substantially unable to manage his or her own financial resources or resist fraud or undue influence” at the time of signing. Proof requires more than isolated lapses in judgment. Medical records, psychiatric evaluations, behavior during the transaction, the complexity and fairness of the deal, availability of independent advice, and whether the transaction departed from the person’s normal patterns all factor in. This is where Westcott’s case broke down: the court found the evidence didn’t establish that his capacity was sufficiently impaired at the moment he signed.1Justia Law. California Civil Code Part 1 – Persons With Unsound Mind
Elder Financial Abuse Protections
California’s Elder Abuse and Dependent Adult Civil Protection Act is a separate framework. Financial abuse of an elder occurs when someone takes or retains an elder’s real or personal property through wrongful means, fraud, or undue influence. It also reaches conduct where the person “knew or should have known” their actions were likely harmful to the elder. The statute covers property obtained through agreements and transfers, so a signed real estate contract doesn’t automatically insulate a buyer from an elder abuse claim if the circumstances suggest exploitation.2U.S. Department of Justice. Elder Abuse and Elder Financial Exploitation Statutes
Elder abuse claims carry weight because they can unlock remedies a simple breach-of-contract case cannot, including attorney’s fees and potential punitive damages. They also require proving the buyer acted wrongfully, which is a high bar in transactions handled through professional agents and business managers.
The Narrow Cooling-Off Rights That Do Exist
California does provide rescission rights in one narrow real estate context. Homeowners facing foreclosure who sell to an “equity purchaser” get five business days to cancel the contract after signing, without any reason required. The cancellation takes effect when the seller delivers written notice to the address in the contract, and any notice expressing the seller’s intent not to be bound counts regardless of the specific form.3California Legislative Information. California Civil Code Division 3, Title 5, Part 2, Chapter 2.5 – Home Equity Sales Contracts
If the equity purchaser took unconscionable advantage of a homeowner in foreclosure, the transaction can be rescinded for up to two years after the deed is recorded, through written notice to the purchaser and recording with the county recorder’s office.3California Legislative Information. California Civil Code Division 3, Title 5, Part 2, Chapter 2.5 – Home Equity Sales Contracts
Standard residential sales between a typical seller and buyer carry no automatic cooling-off period. That gap is precisely what the PERRY Act aimed to close for sellers over 75, and it remains open.
Practical Steps for Senior Sellers Given There’s No Automatic Right to Cancel
Without the PERRY Act, a senior seller in California has to build protection into the process before signing, because unwinding the contract afterward is hard. The Westcott outcome shows how hard: even with Huntington’s disease, recent major surgery, and documented opiate use, the court enforced the sale and later awarded the buyer $1.8 million in damages against him.
- Get a capacity evaluation beforehand. If you or a family member has any cognitive concerns, a written evaluation from a physician dated close to signing creates a contemporaneous record. Reconstructing capacity months later is far harder.
- Have independent counsel review the contract before signing. The strongest single protection is a real estate attorney who works only for you, not the agent or business manager running the deal.
- Don’t sign during recovery. If you’ve recently had surgery or started a new medication, waiting a week or two costs nothing. A contract signed under those conditions is extremely difficult to challenge later.
- Document everything. Keep records of communications, medications taken around the time of any contract discussions, and the names of everyone present when documents are signed.
- Consider a power of attorney. A trusted family member with durable power of attorney can add oversight to major financial decisions, especially during recovery or declining health.
One point worth understanding before signing anything: real estate is treated as unique under California law, so courts can order specific performance and force a reluctant seller to complete the sale. Money damages are not the only remedy a buyer can seek, and in a dispute over a high-value home they often aren’t the remedy the buyer wants.