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Understanding the Perry Act: Protecting Elderly Homeowners from Financial Abuse
The Perry Act, or the Protecting Elder Realty for Retirement Years Act, aims to address the risks of elder financial abuse, particularly in relation to property and real estate transfers. The act establishes a 72-hour “cool down” period during which either party involved in a contract for the conveyance of a personal residence, where one party is over the age of 75, can rescind the agreement without penalty.
The act’s origins can be traced back to singer Katy Perry’s legal battles involving real estate transactions with elderly individuals. In 2015, Perry found herself in a dispute with the LA Archdiocese over the purchase of an 8.5-acre property originally gifted to the Sisters of the Immaculate Heart of Mary. Despite Perry’s attempts to win over the nuns, they remained unconvinced and instead opted to sell the estate to a local restaurant owner. The courts ultimately ruled in favor of Perry and the Catholic Church, awarding them nearly $10 million in damages.
Tragically, one of the nuns, 89-year-old Sister Catherine Rose Holzman, passed away during a court hearing, just hours after pleading with Perry to stop the legal proceedings.
In 2020, Perry faced another courtroom drama when Carl Westcott, founder of 1-800-Flowers, sued to rescind his offer to sell his Montecito home to Perry and her partner, Orlando Bloom, citing his mental incapacity. Westcott, who was diagnosed with Huntington’s disease in 2015, had recently undergone surgery and was under the influence of pain-killing opiates when he signed the contract. Despite this, the judge ruled in Perry’s favor in 2023.
While Perry may not have been specifically targeting elderly property owners, these cases highlight the vulnerability of seniors in real estate transactions. The Federal Trade Commission reported that in 2020, individuals aged 60 and older filed over 93,000 complaints related to fraud, with losses exceeding $500 million. Additionally, the rate of cognitive impairment and/or dementia increases to 15% by age 75 and 20% by age 80.
Supporters of the Perry Act argue that these statistics demonstrate the need for legislation to protect seniors from predatory acquisition, unfair dealing, and elder financial fraud. The act appears to have bipartisan support among legislators across the nation.
As the debate surrounding the Perry Act continues, it is essential to consider whether a 72-hour “cool down” period will effectively protect seniors and if 75 is the appropriate age minimum for such protection. While the act’s namesake may be controversial, the issue of elder financial abuse in real estate transactions remains a serious concern that demands attention and action.
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