With a wealth of experience in tenant buyout agreements during every era and in every Bay Area locale, Bornstein Law is uniquely positioned to survey a patchwork of rules related to tenant surrender of possession agreements.
In a tenant buyout agreement or tenant surrender of possession agreement to be proper, the tenant volunteers to voluntarily vacate the premises in exchange for compensation, a waiver of rent, or both.
At first, these agreements were unregulated by Big Brother. During this period of laissez-faire, our offices were doing several tenant buyouts a week. Then politicians and regulators said that these contracts didn’t pass the smell test.
Fearing that tenants were bamboozled into handing over the keys without knowing the true value of their rental unit and wanting to keep track of how many buyouts were being inked in the shadows, rules were enacted to require landlords to provide a statement of rights to the tenant and give them the ability to mull over an offer and change their minds, even if they initially agree to the buyout agreement.
Have a willing taker that accepts the bait? Hold on.
Tenants also now have ample opportunity to consult with a tenants’ attorney or counselor to discuss their options and no means no – when a tenant turns down a buyout agreement, the owner has to wait a long time to broach the topic again. And localities want to know that the conversation is taking place, requiring owners to file paperwork with cities to bring these agreements into the light of day.
After new regulatory regimes were put into place, Bornstein Law continued to effectuate ethical, legal, and enforceable buyout agreements, but with onerous new rules, considerably less. Now with COVID upon us, we have been busy drafting these agreements because they are one of the few vehicles landlords have to transition tenants out of the unit.
So, it seems we have come full circle.
We were the engine of a lot of buyout agreements at first, only to see a decline after regulators put a damper on them, and now we are experiencing a surge. With buyout agreements back in vogue, Daniel Bornstein will be hosting an August 12th webinar on this topic. Some points to be discussed:
- The confluence of factors in managing landlord-tenant relationships during the pandemic and in what circumstances a tenant buyout agreement might make sense.
- Myriad disclosure requirements, rules and timeframes tenants have to rescind the agreement, taking time to explain the nuances in cities throughout the Bay Area
- From start to finish, how to broach the topic of a tenant buyout agreement and negotiate the “just right” dollar amount and why, whenever possible, we like to stay behind the scenes of these negotiations and take more of an advisory role.
- Why we often prefer tenant buyout agreements over owner move-in or relative move-in agreements (OMI/RMI) and why buyout agreements are sometimes mistaken for “cash for keys.”
We don’t say this in a braggadocio way, but we know of no other law firm that can explain tenant buyout rules across multiple jurisdictions in an easily digestible fashion. Our hard-won experience has given us the specialized knowledge to speak authoritatively on this subject, and we look forward to imparting our insights in this online event. To our knowledge, this is the first webinar of its kind and we invite you to join today.RSVP HERE