Building sales are a fact of life for California tenants. Every sale invokes feelings of uncertainty, and, in some circumstances, fear of what may happen to the California tenants residing in the building placed on the market. However, California tenants protected by a local rent ordinance – such as San Francisco tenants, Oakland tenants, San Jose tenants, and Los Angeles tenants – or California Rent Control are put at ease knowing their landlords cannot terminate their tenancy because the building is being offered for sale. And, when protected by a price control provision, California tenants are protected from dramatic rent increases. However, a decision to put an apartment building up for sale likely fosters numerous questions related to California tenant rights related to the sale of a building. This article provides information related to the sale of an apartment building in California.

Do I Have to Move When My Landlord Sells the Building?

No. California tenants are not required to move simply because the landlord places their building on the market or closes on a sale. Their tenant rights remain the same. Nothing changes by virtue of the landlord placing the building on the market or closing on a building sale. The only substantive change is to whom the California tenant pays rent.

To terminate a tenancy in California, the landlord must serve the California tenant with an advanced written notice:

  • For tenancies where the California tenant has resided in the unit for less than one (1) year, the California tenant need only receive thirty (30) days advanced written notice; and,
  • For tenancies where the California tenant has resided in the unit for at least one (1) year, the California tenant must receive sixty (60) days advanced written notice. California Civil Code § 1946.1(b) & (c).

If the landlord does not serve a written termination of tenancy notice, the California tenant need not move even where the building is up for sale, or the landlord completes a sale. In California, an advanced written notice terminating the tenancy is always required to force a California tenant from their home.

Where a local rent ordinance does not protect the California tenant’s just cause for eviction provision, or California Rent Control, the landlord need not assert a reason for terminating the tenancy in the written termination of tenancy notice. Instead, the landlord may terminate the tenancy without reason. However, where the California tenant can establish that the termination is retaliatory, they may be able to defeat the termination of tenancy notice and remain in their home. California Civil Code § 1942.5. An example of retaliation may occur when the California tenant complains about the landlord’s excessive and unreasonable entry into the home related to the building sale, and the landlord terminates the tenancy. In contrast, the building remains on the market for only one (1) month following the California tenant’s legitimate complaint.

For California tenants protected by just cause for eviction, which requires the landlord to assert a just cause or legally permissible reason, the California tenant will not likely have to move when terminating the tenancy. Most rent ordinances, including California Rent Control, do not allow a landlord to terminate a tenancy due to a building sale. Therefore, California tenants protected by a rent ordinance’s just cause for eviction protection provision will not likely have to move when their landlord sells the building or puts the building up for sale.

Click here to read our sale of building article written specifically for San Francisco tenants.

May the Landlord Increase My Rent When Selling the Building?

Rent increases and building sales are two (2) different legal events with no legal relationship. Generally, a landlord may not increase the rent simply because they put the building up for sale or selling the building. For California tenants protected by local or state rent control, the landlord is generally not permitted to increase the rent because of a building sale. The landlord may only increase the rent by the amount provided by the local or state rent control ordinance, and not to market rate. For California tenants not protected by local or state rent control, the landlord is entitled to increase the rent, provided they provide requisite advanced written notice, on the tenant without regard that the building is up for sale. Here, the California tenants recourse to defeat the rent increase is to argue that the written rent increase notice is invalid or that it is retaliatory.

To Whom Do I Pay My Rent While an Apartment Building Remains for Sale on the Market?

While a building remains on the market for sale, California tenants must continue paying their rent to their landlord, or property manager. Until a sale closes or the California tenant receives written notices specifying otherwise, the California tenant should continue paying rent as they usually did. However, the California tenant must obtain proof of payment by requesting a receipt or paying via check or electronically.

To Whom Do I Pay My Rent After a Sale of the Apartment Building Closes?

Following a sale of the building, the California tenant should contact their landlord, property manager, or the landlord’s realtor and inquire about paying their rent. If the California tenant does not obtain a clear response, and uncertainty remains regarding the sale, they have the following options:

  • Obtain a copy of the most recent deed from their local Recorder’s Office, which should indicate the current property owner and address to where they should pay the rent;
  • Scour online databases to determine the current property owner;
  • Contact a private investigator to perform a skip trace to determine the current property owner (for a fee);
  • Contact a title search company, as they may be able to determine the current property owner (for a fee);
  • Contact the county tax assessor to determine the current property owner; or,
  • Visit the local library or law library to use their databases, which likely include advanced records searches not available on free web search engines.

Once the California tenant determines who is likely to receive the rent, they may pay that person the rent. They should retain a copy of the payment and consider paying via check or electronic funds transfer if a dispute arises.

To Whom Do I Pay Rent When Two (2) People Demand Rent from Me?

Sometimes due to miscommunication, maliciousness, or some other reason, two (2) people may demand rent from a California tenant simultaneously. Typically, both the former and new, current landlord may demand rent from the California tenant during the same month. Here, the California tenant need only pay rent once. A California tenant is never obligated to pay rent twice for the same month. Prakashpalan v. Engstrom, Lipscomb & Lack, 223 Cal. App. 4th 1105, 1132 (2014) (“The theory of unjust enrichment requires one who acquires a benefit which may not justly be retained, to return either the thing or its equivalent to the aggrieved party so as not to be unjustly enriched.”). Once the California tenant determines who is likely to receive the rent, they may pay that person the rent. They should retain a copy of the payment and consider paying via check or electronic funds transfer if a dispute arises.

What is the Best Landlord Tenant Law Firm to Handle a Sale of the Building in California?

Astanehe Law is the best landlord-tenant law firm to handle a sale of building issue in California. Astanehe Law has dealt with hundreds of landlord-tenant cases in California. Astanehe Law has handled sale of building wrongful and constructive eviction claims. The firm only represents California tenants, and never landlords. It is never too early to establish a relationship with an experienced California tenant attorney when your landlord places your apartment building up for sale or closes on a sale. Contact Astanehe Law today to discuss your rights and options as a California tenant when your landlord puts the building up for sale or sells the building.