IMPACT: Tenants Right To Purchase
Tenants have more ways to purchase than ever!
Many rental agreements and leases contain rent-to-own or installment sales provisions. Unscrupulous landlords use these provisions to charge tenants extra for years and then evict them. Tenants may think they are behind in "rent" when in fact they are buyers, not tenants, and state law gives such buyers an absolute right to redeem.
Some leases provide tenants with preemptive rights to purchase, such as: a right of first refusal (to match an offer from a 3rd party), or an option (right to purchase on certain terms). Local laws also grant tenants in some buildings a right to purchase in certain circumstances, such as the San Francisco Condominium Conversion Ordinance.
A unique new California law, Civil Code § 2924m, enables “eligible tenant buyers” and “prospective owner-occupants” to purchase one to four unit residential buildings in foreclosure. Tenants pay the trustee sale (bank) price. The process moves quickly and it has to be done just right, but this law presents major advantages to tenant buyers. Tenant bidders should consult with an attorney, the sooner the better. IMPACT represents tenant buyers statewide.
We are lawyers and real estate professionals enabling our clients to buy buildings, using old fashioned negotiation, and enforcing tenants legal rights to purchase. Call or email us for more information.
Many rental agreements and leases contain rent-to-own or installment sales provisions. Unscrupulous landlords use these provisions to charge tenants extra for years and then evict them. Tenants may think they are behind in "rent" when in fact they are buyers, not tenants, and state law gives such buyers an absolute right to redeem.
Some leases provide tenants with preemptive rights to purchase, such as: a right of first refusal (to match an offer from a 3rd party), or an option (right to purchase on certain terms). Local laws also grant tenants in some buildings a right to purchase in certain circumstances, such as the San Francisco Condominium Conversion Ordinance.
A unique new California law, Civil Code § 2924m, enables “eligible tenant buyers” and “prospective owner-occupants” to purchase one to four unit residential buildings in foreclosure. Tenants pay the trustee sale (bank) price. The process moves quickly and it has to be done just right, but this law presents major advantages to tenant buyers. Tenant bidders should consult with an attorney, the sooner the better. IMPACT represents tenant buyers statewide.
We are lawyers and real estate professionals enabling our clients to buy buildings, using old fashioned negotiation, and enforcing tenants legal rights to purchase. Call or email us for more information.