Cash for Keys agreements IN LOS ANGELES RENT CONTROL PROPERTIES

Also known as "Voluntary Vacate Agreements" or "Buyout Agreements"

landlords can offer to pay their tenants a sum of money in exchange for agreeing to vacate the leased premises

Buyout Agreement

A Buyout Agreement is a written agreement which states that the landlord must pay a tenant money or other consideration in exchange for volunatrily moving out of a Rent Stabilization Ordinance (RSO) unit.  A Buyout Agreement is not an eviction notice.  Beginning January 25, 2017, written Buyout Agreements must meet the RSO requirements.

Requirements for Cash for Keys Agreements in Los Angeles RSO Properties:

Per Ordinance # 184673, an amendment to the RSO, notice must be provided to tenants prior to executing a “cash for keys” agreement and several requirements must be complied with.

Landlords must inform tenants of their RSO rights before executing a Buyout Agreement, and these disclosure notices must be (1) filed with the city of Los Angeles and (2) state the following: 

(a) Tenants may rescind agreements within thirty (30) days or at any time if the requirements are not met.

(b) Tenants are not required to accept any buy-out agreement.

(b) Buyout Agreements must contain language in conformance with LAMC 151.31. 

LAMC 151.31(D)(1)(a) states:

Every Buyout Agreement shall be written in the primary language of the tenant and state in a minimum of 12-point bold type above the tenant 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."

Landlord Requirements

1. 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.
2. The Buyout Agreement must be in the primary language of the tenant.
3. 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.”
4. The landlord must file a copy of the signed and dated RSO Disclosure Notice and Buyout Agreement with LAHD within 60 days of both parties signing the Buyout Agreement.

 Tenant Rights

1. The tenant is not required to accept or sign the Buyout Agreement.
2. The tenant may consult with an attorney or call LAHD prior to accepting the landlord’s offer.
3. The tenant may cancel the Buyout Agreement up to thirty (30) days after signing the Buyout Agreement without any obligation or penalty.
4. If the owner does not comply with the requirements above, then the tenant has the right to cancel the Buyout Agreement for any reason and at any time, without obligation or penalty.
5. 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.

Disclosure Notice & Buyout Agreement must be Filed with the LAHD

The landlord must file the Disclosure Notice and the executed Buyout Agreement with the LAHD within sixty (60) days of the tenant(s) and landlord signing the Buyout Agreement. See disclosure notice in English and in Spanish below. 

Disclosure Notice (English)

Disclosure Notice (Spanish)

How to File with the LAHD

The landord must upload both the Disclosure Notice and the Buyout Agreement with the LAHD by using the links below. 

Submit ONLY via our Tenant Buyout Online System https://lahd.service-now.com/tb. This will allow you to view your filings and their status at any time using your Angeleno Account.

For assistance, review the “Instructions: How to File A Buyout Online”