Voluntary Buyout Agreement Requirements

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As of January 17, 2019, a landlord must follow new rules when entering into voluntary buyout agreements.  A Voluntary Buyout Agreement is an agreement between a tenant and landlord to vacate their unit in exchange for payment.

IMPORTANT! Landlords should follow the following steps to ensure the voluntary buyout agreement is valid

PLEASE READ THE FOLLOWING. This page provides basic information on requirements for landlords to offer a voluntary buyout agreement. Additional information is coming soon, including links to a template disclosure of tenant rights and template agreement. For now, please review the information provided below and contact Rent Stabilization for guidance on completing the required forms at (323) 848-6450.


Step 1: Landlords Must Disclose Tenants' Rights:

When offering a voluntary buyout agreement, a landlord must provide each tenant in the rental unit with a disclosure of rights, in at least fourteen-point bold type in close proximity to the space for signatures.

The disclosure should include these statements:

  • You have the right not to enter into a buyout agreement.
  • You may consult an attorney before entering into a buyout agreement.
  • Within 30 days of entering into the agreement, you may backout (rescind the offer).
  • Visit www.weho.org/rent for information about other buyout agreements in your neighborhood.
  • If you accept a buyout and move, it is considered voluntary.  If you are involuntarily displaced by removal of your building from the housing market using the Ellis Act, you will receive a relocation fee from your landlord, relocation assistance from a non-profit agency, and could qualify for priority for affordable housing in the City's inclusionary housing program. 
  • Rent Stabilization has additional rights that must be included. For more information, please visit www.weho.org/rent.
  • Provide space for each tenant to sign and write the date the landlord provided the disclosure.

 Download the Tenants' Disclosure Template here - [coming soon]


Step 2: Voluntary Buyout Agreement

To be valid, the agreement Must:

  • Be in writing in the primary language of the tenant.
  • Be provided to the tenant at least 10 days before signed.

Download the Voluntary Buyout Agreement Template here - [coming soon]


Step 3: The Landlord Must File Voluntary Buyout Agreements with the signed Disclosures with Rent Stabilization:

  • No less than 31 days after and within 60 days of the agreement being signed by all parties.


For more information on filing the offer/agreement and disclosure please call 323.848.6450

     
   Tenants Know your Rights!

    You have a right not to enter into a voluntary buyout agreement.

    You may choose to consult an attorney before signing a voluntary buyout agreement.

    For more information on Legal Resources click on the link Legal Resources Information

    You may cancel the buyout agreement in writing at any time within 30 days after all parties have signed.

    If you accept a buyout and move, it is considered voluntary.  If you are involuntarily displaced by removal of your building from the housing market using the Ellis Act, you will receive a relocation fee from your landlord, relocation assistance from a non-profit agency, and could qualify for priority for affordable housing in the City's inclusionary housing program.