Tenant Buyout Notification Program
The Los Angeles City Council approved (Ordinance # 184673) an amendment to the RSO to require notice to tenants prior to executing a “cash for keys” agreement. The Tenant Buyout Notification Program (LAMC 151.31) provides for regulation, monitoring and enforcement of voluntary vacancies of RSO rental units occurring pursuant to a Buyout Agreement. To promote fairness during buyout negotiations and agreements, landlords must inform tenants of their RSO rights before executing a Buyout Agreement. Disclosure notices must be filed with the City and must provide the following:
- Tenants may rescind agreements within 30 days or at any time if requirements are not met.
- Tenants are not required to accept a buy-out agreement.
- Buyout Agreements must contain language in conformance with 151.31.
- Contact information for HCIDLA.
A Buyout Agreement is a written agreement where a landlord pays a tenant money or other consideration to voluntarily move out of a Rent Stabilization Ordinance (RSO) unit. A Buyout Agreement is not an eviction notice. Starting January 25, 2017, written Buyout Agreements must meet the RSO requirements.
- Before making a buyout offer, the landlord must give to the tenant the RSO Disclosure Notice, which must be signed and dated if the tenant chooses to accept the offer.
- The Buyout Agreement must be in the primary language of the tenant.
- The Buyout Agreement must contain in 12 point bold language above the signature line as follows: “You, (tenant name), may cancel this Buyout Agreement any time up to 30 days after all parties have signed this Agreement without any obligation or penalty.”
- The landlord must file a copy of the signed and dated RSO Disclosure Notice and Buyout Agreement with HCIDLA within 60 days of both parties signing the Buyout Agreement.
- The tenant is not required to accept or sign the Buyout Agreement.
- The tenant may consult with an attorney or call HCIDLA prior to accepting the landlord’s offer.
- The tenant may cancel the Buyout Agreement up to 30 days after signing it without obligation or penalty.
- If the owner does not comply with the requirements above, then the tenant has the right to cancel the Buyout Agreement for any reason at any time without obligation or penalty.
- If the owner does not comply with the requirements above, then the tenant may assert an affirmative defense to an Unlawful Detainer action and may have a private civil remedy against the owner.
The landlord must must file the Disclosure Notice and the executed Buyout Agreement with the HCIDLA within 60 days of the tenant and landlord signing the Buyout Agreement.
Filing of Disclosure Notice & Buyout Agreement
Executed Disclosure Notices & Buyout Agreements can be submitted by:
Submit ONLY via Email: firstname.lastname@example.org