The Los Angeles Rent Stabilization Ordinance regulates Los Angeles tenant buyouts.  When your landlord desires to initiate buyout negotiations, the Los Angeles RSO’s tenant buyout provisions, codified at Los Angeles Municipal Code section 8.52.100, provides protections covering Los Angeles tenants covered under the RSO as they negotiate and facilitate a buyout agreement.  Continue reading this article to learn more about how the Los Angeles RSO protects Los Angeles tenants during buyout negotiations with their landlord.

What is a Los Angeles Buyout Agreement?

A buyout agreement is not an eviction or a termination of tenancy.  Rather, a buyout agreement is a contract.  In exchange for a tenant voluntarily agreeing to vacate their home, the landlord agrees to pay a monetary payment.  Buyouts are always optional and, to the extent not prohibited by law, the terms are negotiable.  This means the vacate date, payment, and other terms of the agreement are completely negotiable.  Los Angeles tenants are free to refuse to enter buyout negotiations, negotiate the agreement themselves, or retain an attorney to try and reach a deal.  Although buyout agreements are negotiable contracts, the Los Angeles Buyout Ordinance protects Los Angeles tenants by regulating certain aspects of the buyout negotiation and agreement process.

What Requirements Must Los Angeles Buyout Agreements Meet to be Effective? 

To be effective, the Los Angeles buyout agreement must meet the following requirements:

• The Los Angeles buyout agreement must be written in the Los Angeles tenant’s primary language;
• The landlord must provide each Los Angeles tenant forty-five (45) days to review the proposed Los Angeles buyout agreement before signing it;
• The written Los Angeles buyout agreement must contain the following statements in at least 12-point boldface type near the Los Angeles’ tenant signature block:
  • “You may cancel this buyout agreement in writing at any time before the forty-fifth (45th) day after all parties have signed this buyout agreement.”
  • “You have a right not to enter into a buyout agreement.”
  • “You may choose to consult with an attorney before signing this buyout agreement. The County of Los Angeles Department of Consumer and Business Affairs may also have information about other buyout agreements in your neighborhood.”
• The landlord must provide the Los Angeles tenant a copy of the fully executed Los Angeles buyout agreement within ten (10) days of execution; and,
• The landlord must also file a copy of the executed Los Angeles buyout agreement with the City of Los Angeles.

What are the Los Angeles Buyout Ordinance’s Buyout Disclosure Requirement

The City of Los Angeles’ buyout provisions require Los Angeles tenants to receive buyout disclosure documents.  Los Angeles Municipal Code § 8.52.100.  At the time a proposed buyout agreement is provided, the landlord must provide each Los Angeles tenant in a dwelling unit with a form containing the following information:

• A statement that the Los Angeles tenant has a right not to enter into buyout negotiations or a Los Angeles buyout agreement;
• A statement that the Los Angeles tenant may consult with an attorney before entering into a Los Angeles buyout agreement;
• A statement that the Los Angeles tenant may rescind the Los Angeles buyout agreement for up to forty-five (45) days after it is fully executed;
• A statement that the Los Angeles tenant may contact the City of Los Angeles for information about other buyout agreements in the Los Angeles tenant’s neighborhood and other relevant information;
• Any other information required by the City of Los Angeles consistent with the purpose and provisions of this Section; and,
• A space for each Los Angeles tenant to sign and write the date the Los Angeles landlord provided the Los Angeles tenant with the disclosure. Los Angeles Municipal Code § 8.52.100.

After Signing a Los Angeles Buyout Agreement, How Long Do Los Angeles Tenants Have to Rescind the Los Angeles Buyout Agreement?

After signing a Los Angeles buyout agreement, Los Angeles tenants have forty-five (45) days to rescind the agreement.  To rescind a Los Angeles buyout agreement, the Los Angeles tenant must hand-deliver, email, or send by certified mail return receipt requested, a statement to the landlord indicating the recission.

To discuss the Los Angeles Buyout Ordinance, the Los Angeles Rent Stabilization Ordinance, Los Angeles Ellis Act Evictions, Los Angeles Owner Move-In Evictions, Los Angeles wrongful evictions, Los Angeles Rent Control, or California Rent Control (AB 1482) with a tenant attorney, contact Astanehe Law.