“Cash for Keys” in Los Angeles: What the RSO Buyout Rules Require

What is a cash for keys agreement in Los Angeles?

A cash for keys agreement — the City calls it a Buyout Agreement — is a written agreement in which a landlord pays a tenant money or other consideration to move out of a rent-stabilized unit voluntarily. It is not an eviction notice, and no court is involved. Because a buyout removes a tenant from an RSO unit without the protections that come with an unlawful detainer case, the City regulates the process separately under the Tenant Buyout Notification Program, Los Angeles Municipal Code Section 151.31, added by Ordinance 184673. Written buyout agreements have had to meet these requirements since January 25, 2017.

The program covers only rental units subject to the City of Los Angeles Rent Stabilization Ordinance. Units outside the RSO, and rentals in other cities within Los Angeles County, follow different rules or none at all.

1st

The RSO Disclosure Notice must be signed and dated before any buyout offer is made

30

Days after signing during which the tenant can cancel for any reason, with no penalty

60

Days after signing within which the landlord must file both documents with LAHD

What has to happen before a buyout offer is made?

The Disclosure Notice comes first — before the offer, not alongside it and not after. Before making a buyout offer, the landlord must give the tenant the RSO Disclosure Notice on the form authorized by LAHD, and both the landlord and the tenant must sign and date it.

Two points get mixed up constantly: the Disclosure Notice is not the Buyout Agreement. They are two separate documents, and both eventually get filed with the City. The Disclosure Notice exists to put the tenant’s RSO rights in front of them in writing before any negotiation starts. LAHD publishes the form in English and Spanish.

What must the Buyout Agreement itself contain?

Two requirements sit on the face of the document. First, the agreement must be written in the primary language of the tenant. Second, it must carry a cancellation statement in 12-point bold type above the tenant’s signature line, in the wording the ordinance prescribes:

“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.”

Note what the ordinance does not do: it sets no minimum payment, no formula, and no schedule. The amount is whatever the parties agree to. LAHD does keep the compensation figure out of the public record.

Can a tenant cancel a buyout agreement after signing it?

Yes — for any reason, for up to 30 days after all parties have signed, with no financial obligation or penalty. The tenant does not have to give a reason and does not have to show that anything went wrong.

The window can also stay open far longer. If the Disclosure Notice or the Buyout Agreement does not conform to LAMC 151.31 or the RAC Regulations, the tenant keeps the right to cancel throughout the applicable statute of limitations period. In practice that means a defect in the paperwork can leave a deal unwound months after everyone thought it was done.

Does the landlord have to file the agreement with LAHD?

Yes, and the deadline is firm: the landlord must file copies of the signed and dated RSO Disclosure Notice and the Buyout Agreement with the Los Angeles Housing Department within 60 days of both parties signing the agreement.

Filing method matters too. LAHD now accepts these submissions only through its Tenant Buyout Online System at lahd.service-now.com/tb, which lets the filer check status later using an Angeleno Account. LAHD publishes step-by-step filing instructions with screenshots.

What happens if the rules are not followed?

Non-compliance shifts real leverage to the tenant. Where the landlord has not met the requirements above:

• The tenant may cancel the Buyout Agreement at any time, for any reason, without obligation or penalty.
• The violation may be raised as an affirmative defense in an unlawful detainer action.
• The tenant may have a private civil remedy against the owner.

That second point is why this matters well beyond the buyout itself. A buyout that was papered incorrectly in year one can surface as a defense in an eviction case in year two. If you are preparing or responding to an unlawful detainer on an RSO unit where a buyout was ever discussed, the Disclosure Notice and the LAHD filing are worth locating early — see our eviction document preparation page, or our guide to what to do after being served with an unlawful detainer.

What rights does the tenant keep throughout?

• The right to say no. A tenant is not required to accept or sign a Buyout Agreement, and the landlord may not retaliate for a refusal.
• The right to get advice first. A tenant may consult an attorney, a legal aid agency, or LAHD before deciding whether to accept, and may seek help cancelling afterward.
• The 30-day cancellation right described above.
• An open-ended cancellation right where the paperwork does not comply with the ordinance.

Frequently asked questions

What is a cash for keys agreement in Los Angeles?

A cash for keys agreement, formally called a Buyout Agreement, is a written agreement in which a landlord pays a tenant money or other consideration to voluntarily move out of a unit covered by the Los Angeles Rent Stabilization Ordinance. It is not an eviction notice, and it is regulated separately under LAMC Section 151.31.

Can a tenant cancel a buyout agreement after signing it in Los Angeles?

Yes. Under LAMC 151.31 a tenant may cancel a Buyout Agreement for any reason for up to 30 days after all parties have signed, without obligation or penalty. If the landlord did not meet the ordinance requirements, the tenant may cancel at any time within the applicable statute of limitations period.

Does a landlord have to file a buyout agreement with LAHD?

Yes. The landlord must file both the signed and dated RSO Disclosure Notice and the Buyout Agreement with the Los Angeles Housing Department within 60 days of both parties signing the agreement. LAHD accepts these filings only through its Tenant Buyout Online System.

What happens if a landlord does not follow the cash for keys rules?

If the landlord does not comply with LAMC 151.31, the tenant may cancel the Buyout Agreement at any time without obligation or penalty. A violation may also be raised as an affirmative defense in an unlawful detainer action, and the tenant may have a private civil remedy against the owner.

Is a tenant required to accept a cash for keys offer?

No. A tenant is not required to accept or sign a Buyout Agreement, and may consult an attorney, a legal aid agency, or LAHD before deciding. Declining a buyout offer is not a ground for eviction.

Does the RSO buyout program apply to every rental unit in Los Angeles?

No. The Tenant Buyout Notification Program applies only to rental units covered by the City of Los Angeles Rent Stabilization Ordinance. Units outside the RSO, and units in other cities within Los Angeles County, are governed by different rules.

Primary sources

• LAMC § 151.31 — Tenant Buyout Notification Program (full ordinance text)
• LAHD — Tenant Buyout Notification Program (forms, filing, webinars)
• Ordinance No. 184673 (the RSO amendment that created the program)
• LAHD Tenant Buyout Online System (the only accepted filing channel)