§98.0707 Buyout Agreements

It is the purpose and intent of section 98.0707 to regulate buyout agreements to increase the fairness of buyout negotiations and agreements, to ensure that tenants who enter into buyout agreements are aware of their rights, and to prevent landlords from contracting around the legal rights and remedies available to tenants under existing law.

• (a) Disclosure Prior to Buyout Offers . Prior to making a buyout offer , the landlord shall provide each tenant in a residential rental property a written disclosure that shall include the following:

  • (1) a statement that the tenant has a right not to enter into a buyout agreement ;

  • (2) a statement that the tenant may choose to consult with an attorney before entering into a buyout agreement ;

Ch. Art. Div. 9 8 7 16

San Diego Municipal Code

Chapter 9: Building, Housing and Sign Regulations

(3-2024)

• (3) a statement that the landlord may not retaliate against the tenant for refusing to enter into or negotiate a buyout agreement ;

• (4) a statement that all tenants of a residential rental property may refuse to receive future buyout offers by providing landlord written notice of their refusal, which shall be effective for six months, and all tenants of a residential rental property may rescind the refusal to receive future buyout offers by providing landlord written notice of the rescission;

• (5) a statement that the tenant is eligible for relocation assistance and the amount of the required relocation assistance in section 98.0706(c);

• (6) the names of all people authorized to discuss the buyout offer and enter into a buyout agreement on the landlord’s behalf;

• (7) a space for each tenant to sign and write the date the landlord provided the tenant with the disclosure; and

• (8) a space for the landlord to sign and write the date on which the landlord provided the tenant with the disclosure.

• (b) The landlord shall provide each tenant a fully executed copy of the disclosure form within three days of its execution and retain a copy of each signed disclosure form for five years, along with a record of the date the landlord provided the disclosure to each tenant .

• (c) Requirements for Buyout Agreements . The landlord shall comply with the following:

  • (1) The buyout agreement shall be in writing.

  • (2) A copy of the buyout agreement shall be given to each tenant at the time the tenant signs the buyout agreement .

  • (3) The buyout agreement shall include the following statements in bold letters in at least 14-point font in close proximity to the space reserved for the signature of the tenant :

    • (A) You, the tenant, have a right not to enter into this buyout agreement.

Ch. Art. Div. 9 8 7 17

San Diego Municipal Code

Chapter 9: Building, Housing and Sign Regulations

(3-2024)

• (B) If you, the tenant, are entitled to relocation assistance under federal, state, or local law, a buyout agreement for less than the amount of the relocation assistance to which you are entitled violates Chapter 9, Article 8, Division 7 of the San Diego Municipal Code and is void.

  • (C) You, the tenant, may choose to consult with an attorney before signing this agreement.

• (4) If the tenant primarily negotiates the buyout agreement or lease , orally or in writing, in a non-English language, the landlord shall provide the tenant with an English and a translated version of the buyout agreement at the same time.

A buyout agreement that does not strictly comply with all the requirements of section 98.0707(c)(1)-(4) shall be void.

• (d) Void Buyout Agreements . Buyout agreements must be for an amount that is greater than the amount of relocation assistance available to the tenant in section 98.0706(c). A buyout agreement for less than the amount of relocation assistance owed to the tenant violates this Division and is void.

• (e) No Waiver. The provisions of section 98.0707 may not be waived by a buyout agreement . Any term of a buyout agreement , lease , contract, or other agreement which purports to waive or limit a tenant's rights under section 98.0707 is contrary to public policy, unenforceable, and void.

• (“Buyout Agreements” added 5-25-2023 by O-21647 N.S.; effective 6-24-2023.)