L.A. Mun. Code ch. XV art. 1; ch. XVI art. 5 § 151.31
TENANT BUYOUT NOTIFICATION PROGRAM (Los Angeles Rent Stabilization Ordinance and Just Cause for Eviction Ordinance)
Operative Text
(Added by Ord. No. 184,673, Eff. 1/25/17.) A. Purpose. The Tenant Buyout Notification Program provides for regulation, monitoring and enforcement of voluntary vacancies of RSO rental units occurring pursuant to a Buyout Agreement. To promote fairness during buyout negotiations and agreements, this section requires tenants be informed of their RSO rights before executing a Buyout Agreement. 1. The Rent Adjustment Commission may promulgate regulations to implement this section. B. Definitions. The following words and phrases, whenever used in this section, shall be construed as defined in this section. Words and phrases not defined in this section shall be construed as defined in Section 151.02 of this Chapter, if defined therein. Buyout Agreement. A written agreement where a landlord pays a tenant money or offers other consideration to voluntarily vacate an RSO rental unit. Buyout Offer. An offer, written or oral, by a landlord to a tenant to pay money or other consideration to vacate an RSO unit. C. RSO Disclosure Notice. Before making a Buyout Offer, the landlord shall provide the tenant(s) with the RSO Disclosure Notice of tenant rights on a form authorized by the Department, which shall be dated and signed by the landlord and the tenant(s). D. Buyout Agreement Requirements. 1. Written Buyout Agreement. a. 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.” b. Every Buyout Agreement shall be signed and dated by the landlord and tenant. c. A copy of the fully executed Buyout Agreement shall be given to the tenant. 2. Cancellation of Buyout Agreement. a. A tenant shall have the right to cancel a Buyout Agreement for any reason for up to 30 days after execution by the landlord and the tenant without any financial obligation or penalty. b. Whenever an RSO Disclosure Notice and/or Buyout Agreement does not conform to the requirements of this section or RAC Regulations, the tenant shall have the right to cancel the Buyout Agreement through the applicable statute of limitations period. 3. Filing Executed RSO Disclosure Notice and Buyout Agreement. The landlord shall file with the Department copies of the RSO Disclosure Notice signed by the tenant and the landlord, and the Buyout Agreement within 60 days of the Buyout Agreement execution. E. Affirmative Defense. A violation of this section may be asserted as an affirmative defense in an unlawful detainer action. F. Private Right of Action. A tenant may bring a private right of action against a landlord who violates a provision of this section and recover damages and a penalty of $500.
Under L.A. Mun. Code § 151.31, landlords who want to offer a tenant money or other consideration to voluntarily leave a rent-stabilized (RSO) unit must first provide a city-authorized disclosure notice, and any resulting written agreement must meet specific formatting, language, and filing requirements. Tenants retain a 30-day right to cancel a signed buyout agreement without penalty, and that window extends through the applicable statute of limitations if the required disclosures or agreement terms were defective.
Plain English — not legal advice.
Under § 151.31, a compliant operator delivers the Department-authorized RSO Disclosure Notice—signed and dated by all parties—before making any buyout offer, whether oral or written. The written Buyout Agreement is prepared in the tenant's primary language, includes the required 12-point bold cancellation language above the signature line, and a fully executed copy is given to the tenant. Within 60 days of execution, the landlord files copies of both the signed Disclosure Notice and the Buyout Agreement with the Department.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 151.31 gives RSO tenants the right to receive a city-authorized disclosure of their rights before a landlord may make any buyout offer, and a 30-day penalty-free cancellation window after signing any buyout agreement. If the disclosure notice or agreement did not meet the code's requirements, that cancellation right may extend much longer under the applicable statute of limitations. Tenants who believe a landlord violated § 151.31 can raise it as an affirmative defense in an eviction proceeding, pursue a private lawsuit for damages plus a $500 penalty, or contact a local tenant-rights organization or the Los Angeles Housing Department to learn more about available options.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 10, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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