Know Your Rights When Your Building Is Sold
“For sale” signs are popping up on properties all over town. What happens to your tenancy when a property is sold? It depends on what you’ve signed and where you live, but one thing is for certain--you have specific rights, no matter who owns the place you rent.
Some cities have ordinances that regulate owner-occupancy and payment to tenants who are asked to move out. If you are faced with an eviction, you may need to consult an attorney.
Start by pulling out your written lease. If you can’t find a copy, you are allowed to ask annually for a copy from your landlord.
If the lease has not expired, the document remains in force. All terms and conditions still apply.
Your rights run with the property, not the owner or person who signed the document.
With rare exception, you have the right to remain planted in your place until the lease period has ended. Negotiations can always take place, such as buying your lease out so you will depart early, but you should not feel forced out just because the property has sold.
If the lease has expired, examine the fine print. Most leases have a clause that creates a month-to-month tenancy when the lease expires. If so, you may be out of luck--and a home.
Your rights also vary depending on which city you live in, and any applicable ordinances. Basic research may be required. Check the front of your phone book under “government” for your specific city, which lists phone numbers for rent control agencies.
What if no local law applies? In that case, state law prevails. Usually the owner must give written notice 30 days before the end of your lease or monthly agreement.
In Los Angeles, West Hollywood and Santa Monica, 60 days’ notice is required. Longer notice periods apply in special circumstances.
What if the new owner wants to move into your place?
Not so fast. Some cities, such as Santa Monica, have highly detailed regulations. Chapter 9 of its city charter details the eviction process. The new owner must first specify the number of bedrooms they need. Location and amenities are not considered unless the owner documents a medical need.
Once the unit size has been established, the owner must select the tenant who moved onto the property most recently. Relocation benefits start at $3,400 for single or bachelor apartments and reach up to $7,200 for four bedroom units. Benefits are based on the number of bedrooms in the unit, with additional funds required to be paid to tenants who are 62 years and older, disabled or those having a minor (younger than 18) child in residence. The Santa Monica rent-control board can give further details at (310) 458-8751.
In Los Angeles, rent control applies only to certain units (usually built before 1978). Owners have specific rules to apply when asking you to move, which are detailed in the ordinance. If asked to move, tenant compensation is based on occupant age and family situation.
Couples or singles are given $2,000 to move for the entire unit (not per person). Seniors and families can receive $5,000 as a lump-sum parting gift. For Los Angeles, the Rent Registration Department can be reached at (213) 367-9136.
Wherever you may live, what happens to your security deposit when the place is sold? Do you have to get it back from the previous owner? Luckily, no. Security deposits are usually transferred to the new owner as a credit against the purchase price.
How do the new owners know the correct amount? Buyers are always given a copy of the lease, because they are bound by the agreement. This includes the security deposit, which remains owed to the tenant.
During escrow, you may be asked to fill out an estoppel certificate, which has space for your rental amount, any outstanding problems, costs or claims, and to certify the exact amount of your security deposit. If your place of residence is sold and you didn’t fill out an estoppel, contact whoever sends the introduction letter as new owner to review your file. You reap what you sow, so keep a positive attitude.
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H. May Spitz is a Los Angeles-based freelance writer. Comments may be sent to hmayspitz@aol.com.
