How Katy Perry Inspired A New Real Estate Act & What It Means

According to its official website, the Protecting Elder Realty for Retirement Years (PERRY) Act "addresses the risks of elder financial abuse, especially as it relates to property and real estate sales and transfers." Also known as the Katy PERRY Act, the proposed legislation — which has bipartisan support — was born from an ongoing real estate legal battle involving singer Katy Perry and her husband, Orlando Bloom. In July 2020, the couple purchased a $15-million Santa Barbara home from 84-year-old Carl Westcott, the founder of 1-800-Flowers — a property deal he and his family dispute, claiming Westcott was of "unsound mind" when he agreed to the sale.

If passed, the PERRY Act would create a 72-hour "cool-down" period following the sale of a personal residence, during which time either party can back out of the deal — where one of the parties is 75 years of age or older. If the sale is dissolved within this cool-down period, there is no penalty.

Carl Westcott and his family pitched the legislation after Katy Perry's business manager, Bernie Gudvi, purchased Westcott's Montecito, California, estate on behalf of the "The Voice" judge and her husband Orlando Bloom in July 2020. This was just two months after Westcott bought the home for $11,250,000. A week after making the deal with Gudvi, Westcott said he wanted out of the sale.

As noted, Westcott says he was of "unsound mind" when he agreed to sell his eight-bedroom California mansion, since he had been taking prescribed opiates after undergoing six hours of back surgery. Westcott also has Huntington's disease, a rare degenerative brain disease. Per his complaint, filed in Los Angeles Superior Court, Westcott decided to renege on the deal after he was "mentally clear again," saying he wanted to live in the Santa Barbara home "for the rest of his life," and have a home that's safe and comfortable for seniors like him who suffer from disease progression.

But Gudvi and his clients countered, arguing that Westcott was totally "competent" throughout the transaction. While Perry and Bloom aren't named in the actual lawsuit against Gudvi, they're countersuing for lost rent and other damages. The trial for the lawsuit began in late September while the PERRY Act is being promoted by the Westcott Family for elected officials to consider sponsoring.

The (Katy) PERRY Act hasn't entered the legislative process as of yet. There are, however, 37 different legislators from the Republican and Democratic parties who say they support the bill. "Government's primary responsibility is to protect the rights of all citizens," said Assemblyman Ken Gray of Nevada, one of the act's current endorsers (via the PERRY Act website). As Gray notes, the legislation "sends a strong message that notoriety and wealth do not give anyone the right to prey on the elderly."

Further, if passed, the PERRY Act will mean corporations, like HomeVestors of America, Inc. (aka, We Buy Ugly Houses), won't be able to take advantage of the elderly either. A May 2023 ProPublica investigation into HomeVestor's practices found that franchisees often targeted seniors and similarly vulnerable homeowners. Such real estate victims and their families are in favor of a "cooling-off period" for property deals as proposed by the PERRY Act, as well, but, according to ProPublica, are advocating for more than three days' time (to allow for proper communication and consultation on what to do).

According to the FBI's 2022 Elder Fraud Report, total losses for elderly victims rose 84% year-over-year from 2021. And as the ProPublica investigation uncovered, many people will target the elderly outright for financial gain. If the PERRY Act, or a similar form of legislation, were to become U.S. law, it could help fight the growing issue of elder financial abuse and protect seniors from predatory buyers.