Disclosure of Rights to Tenants Before and After Sale of Rental Units

Before property containing rental units subject to Section 37.9 may be sold, the owner/seller shall disclose to tenants of the property the rights of tenants during and after the sale of the property.  This disclosure shall be in writing and shall include:

• A statement that tenants cannot be evicted or asked to move solely because a property is being sold or solely because a new owner has purchased that property
• A statement that tenants cannot have their rent increased above that permitted by Chapter 37 solely because a property is being sold or solely because a new owner has purchased that property
• A statement that the rental agreements of tenants cannot be materially changed solely because a property is being sold or solely because a new owner has purchased that property
• A statement that the owner’s right to show units to prospective buyers is governed by California Civil Code section 1954, including a statement that tenants must receive notice as provided by Section 1954, and a statement that a showing must be conducted during normal business hours unless the tenant consents to an entry at another time
• A statement that tenants are not required to complete or sign any estoppel certificates or estoppel agreements, except as required by law or by that tenant’s rental agreement
  • The statement shall further inform tenants that tenant rights may be affected by an estoppel certificate or agreement and that the tenants should seek legal advice before completing or signing an estoppel certificate or agreement
• A statement that information on these and other tenants' rights are available at the San Francisco Rent Board, 25 Van Ness Ave, San Francisco, California, and at the counseling telephone number of the Rent Board and at its web site

Within 30 days of acquiring title to rental units, the new purchaser/owner shall disclose to tenants of the property the rights of tenants following this sale of the property.  This disclosure shall be in writing and shall include:

• A statement that tenants cannot be evicted or asked to move solely because a new owner has purchased that property
• A statement that tenants cannot have their rent increased above that permitted by Chapter 37 solely because a new owner has purchased that property
• A statement that the rental agreements of tenants cannot be materially changed solely because a new owner has purchased that property
• A statement that any tenants, sub-tenants or roommates who were lawful occupants at the time of the sale remain lawful occupants
• A statement that tenants' housing services cannot be changed or severed from the tenancy solely because a new owner has purchased that property; and that tenants' housing services that were supplied in connection with the use or occupancy of a unit at the time of sale (such as laundry rooms, decks, or storage space) cannot be severed from the tenancy by the new purchaser/owner without just cause as required by Section 37.9(a)

Click here to review the text under 37.9(k) of the San Francisco Rent Ordinance.

Tags: Topic 265A