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Your Legal Corner - Client Alert Blog

NEW REQUIRED Tenant Buyout Disclosure Notice and Oversight by HCIDLA For Los Angeles Rent Stabilized Units

Written By: Melissa C. Marsh, Esq., California Attorney, January 2017 Add to Favorites

Effective January 25, 2017, the Los Angeles City Council and Mayor Garcetti added Section 151.31 to the Los Angeles Rent Stabilization Ordinance. Section 151.31 establishes a new Tenant Buyout Notification Program to regulate and monitor tenant buyout agreements (aka. cash for keys agreements and tenant vacate agreements) associated with properties subject to Los Angeles rent control. If your rental property is subject to Los Angeles Rent Control, and you want to offer your tenant a cash for keys agreement to voluntarily vacate, you are now required to jump through a lot more hoops.

Pursuant to Los Angeles Municipal Code §151.31, before making a Buyout Offer to a Los Angeles tenant in a rent controlled unit, the owner must first provide the tenant(s) with a formal RSO Disclosure Notice issued by the Los Angeles Housing Community and Investment Department (HCIDLA) and have the same both dated and signed by the landlord and the tenant.

Los Angeles Municipal Code §151.31 further provides that a Buyout Offer, Tenant Buyout Agreement, and/or Tenant Cash For Keys Agreement To Voluntarily Vacate that involves a Los Angeles tenant in a rent controlled unit must state:

  1. that the Tenant has the right to cancel (rescind) the Tenant Buyout Agreement (Cash For Keys Agreement) for any reason for up to 30 days after it is signed by the landlord and the tenant;
  2. that the Tenant is NOT required to accept a buy-out agreement;
  3. the amount of relocation assistance that the Tenant is entitled to under the Los Angeles Rent Stabilization Ordinance;
  4. the contact information for the Los Angeles Housing Community and Investment Development Department; and
  5. just above the Tenant’s signature in the primary language spoken by the tenant (whatever that is) and in 12 point bold type the Tenant Buyout Agreement (Cash For Keys Agreement) must state:
“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.”

Finally, if the Voluntary Agreement to Vacate (a.k.a. Tenant Voluntary Buyout Agreement, Tenant Cash For Keys Agreement) is executed, the landlord MUST file an executed copy of the required RSO Disclosure Notice and the Buyout Agreement with the HCIDLA within 60 days. The Ordinance does provide, however, that the amount of compensation set forth in the Cash For Keys Agreement (Tenant Buyout Agreement) will not be made public.


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Disclaimer: The information presented on this web site was prepared by Melissa C. Marsh for general informational purposes only and does not constitute legal advice. The information provided in my articles and alerts should not be relied upon, or used as a substitute for professional legal advice from an attorney you retain to advise or represent you. Your use of this Internet site does not create an attorney- client relationship. Transmission of this article is not intended to create, and receipt of it does not constitute, an attorney-client relationship. All uses of the contents of this site, other than personal uses, are prohibited. You may print or email a copy of any information posted on this web site for your own personal, non-commercial, use, but you may not publish any of the articles or posts on this web site without the Express Written Permission of Melissa C. Marsh.


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Located in Los Angeles, California, the Law Office of Melissa C. Marsh handles business law and corporation law matters as a lawyer for clients throughout Los Angeles including Burbank, Sherman Oaks, Studio City, Valley Village, North Hollywood, Woodland Hills, Hollywood, West LA as well as Riverside County, San Fernando, Ventura County, and Santa Clarita. Attorney Melissa C. Marsh has considerable experience handling business matters both nationally and internationally. We routinely assist our clients with incorporation, forming a California corporation, forming a California llc, partnership, annual minutes, shareholder meetings, director meetings, getting a taxpayer ID number (EIN), buying a business, selling a business, commercial lease review, employee disputes, independent contractors, construction, and personal matters such as preparing a will, living trust, power of attorney, health care directive, and more.