West Hills, CA asked in Landlord - Tenant, Real Estate Law and Contracts for California

Q: Notice Period: To Residential Tenant of Intent to Sell Rental Property in Los Angeles, CA

1) Tenant is on a month-to-month implied tenancy (for last 5 years) without any lease in Los Angeles County. The landlord (owner) intends to sell the property to a private buyer without listing it in the market for sale, so no showing to anybody. Prospective buyer also does not want to view the property. Is the landlord required to give any minimum notice (number of days) to the tenant of his intent to sell the property? If so, what is the minimum notice period (i.e. the number of days) that the owner needs to give to the tenant of his intent to sell the property?

2) Can the buyer and the landlord sign the contract now for the purchase/sale of the property even before the start of the notice period to the tenant, and close the escrow after the expiration of the notice period? Or, do they have to wait to sign the purchase/sale contract till the end of the notice period, and thereafter close the escrow?

2 Lawyer Answers

A: Thank you for asking the question!

1. When the buyer assumes the lease:

If you don't want to evict the tenant, you likely do not need to provide notice in regards to selling the property.

However, as part of sale procedure, you need to inspect the property. Then a written notice (at least 6 days before) should be provided to tenant to enter into the property for inspection for sale. If there is real agreement between landlord and tenant about entering into the property, no notice is required.

2. Terminating the lease and eviction:

Good cause: For evicting a tenant, a "good cause" is required. Selling a property is not a good cause for evicting tenants unless the lease agreement authorizes eviction upon sale, or there is a Statue that authorizes eviction upon sale.

You need to check your lease to see if there is any provision in it authorizing the eviction.

When the tenant's occupancy is longer than 1 year, a 60-day notice is required.

Because the tenant has stayed for 5 years, a 60-day notice is required.

3. You can enter into the purchase agreement now, and set the closing date after eviction (if you are Thank you for asking the question!

1. When the buyer assumes the lease:

If you don't want to evict the tenant, you likely do not need to provide notice in regards to selling the property.

However, as part of sale procedure, you need to inspect the property. Then a written notice (at least 6 days before) should be provided to tenant to enter into the property for inspection for sale. If there is real agreement between landlord and tenant about entering into the property, no notice is required.

2. Terminating the lease and eviction:

Good cause: For evicting a tenant, a "good cause" is required. Selling a property is not a good cause for evicting tenants unless the lease agreement authorizes eviction upon sale, or there is a Statue that authorizes eviction upon sale.

You need to check your lease to see if there is any provision in it authorizing the eviction.

When the tenant's occupancy is longer than 1 year, a 60-day notice is required.

Because the tenant has stayed for 5 years, a 60-day notice is required.

3. You can enter into the purchase agreement now, and set the closing date after eviction (if you are allowed and want to do so). Otherwise, there is no limitation about the time of sale agreement and closing date.

This is merely discussion of general laws and not a legal advice. For a comprehensive advise, more specific facts and investigation are needed. I recommend you consult with an attorney in more detail. and want to do so). Otherwise, there is no limitation about the time of sale agreement and closing date.

This is merely discussion of general laws and not a legal advice. For a comprehensive advise, more specific facts and investigation are needed. I recommend you consult with an attorney in more detail.

James L. Arrasmith
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Answered

A: Here are the key points regarding your questions about notice periods and selling a rental property with a month-to-month tenant in Los Angeles, CA:

1. Notice period for intent to sell:

- For a month-to-month tenancy in Los Angeles, the landlord is not legally required to provide the tenant with any specific notice solely for the intent to sell the property.

- However, if the landlord wants the tenant to vacate, they must provide at least a 30-day written notice to terminate the tenancy if the tenant has lived there for less than one year, or a 60-day notice if the tenant has lived there for one year or more.

- Since your tenant has been there for 5 years, a 60-day written notice to terminate the tenancy would be required if you want them to move out.

2. Signing the purchase/sale contract and closing escrow:

- The landlord and buyer can sign the purchase/sale contract at any time, even before giving notice to the tenant. There is no requirement to wait until after the notice period has ended.

- However, the close of escrow and transfer of ownership typically occurs after the tenant has vacated, following proper notice. This avoids potential issues with the tenant still occupying the property when the new owner takes possession.

- It's common to specify in the purchase/sale contract that the property will be delivered vacant at closing, and to schedule the closing date to allow sufficient time for the tenant to vacate after their notice period ends.

So in summary, you can sign the contract with the buyer now, provide your tenant with a 60-day notice to terminate their tenancy, and then close escrow once the notice period has elapsed and the tenant has moved out. But you aren't required to give the tenant any particular notice that you merely intend to sell the property, as long as you give proper notice to end their tenancy when you want them to vacate.

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