Cash for Keys in California: Tenant Buyout Agreements and the Law
Cash for keys is a voluntary written agreement in which an owner pays an occupant to move out by a set date and hand over the keys, instead of ending the tenancy through a notice or an eviction. It is lawful in California, but it can’t be used to strip tenants of their rights: Civil Code section 1946.2 voids any waiver of the state’s just-cause protections, and San Francisco and Oakland regulate buyout negotiations with required disclosures, cancellation periods and city filing.
Owners use these agreements to deliver a property vacant for a sale, to move in themselves, to renovate, or after a foreclosure when a lender takes back a home with someone still living in it. The payment is negotiated, not set by statute, but local relocation amounts are a common reference point for both sides.
This guide covers the state rules, the San Francisco and Oakland ordinances, relocation benchmarks in Berkeley and unincorporated Sonoma County, and how to structure an agreement that holds up. It sits within our investment property guides.
When owners and buyers use cash for keys
- After foreclosure (REO). The Department of Real Estate’s consumer alert describes the practice growing out of REO sales: a lender or new owner pays the occupant to leave quickly, in broom-swept condition, and to turn over keys and garage openers. DRE explains the lender’s motive as avoiding the minimum three-to-six-month delay of a formal eviction.
- Before a sale. A seller who wants to offer a building vacant, or a buyer who needs it vacant, negotiates a move-out instead of relying on a no-fault notice that may not be available.
- Owner move-in or renovation. Even where a no-fault ground exists, a negotiated date and payment can be faster and more predictable than a contested notice.
For bank-owned property specifically, see our guides to investing in REO properties and, for lenders and servicers, REO asset management.
What California law requires
Under Civil Code section 1946.2, once a tenant has continuously and lawfully occupied a unit for 12 months, a covered owner can’t end the tenancy without a just cause. For a no-fault cause, the owner must either pay relocation equal to one month’s rent within 15 calendar days of serving the notice or waive the final month’s rent in writing, and that payment is credited against any other relocation required by law.
A notice that doesn’t comply is void, and section 1946.2 is currently set to expire on January 1, 2030. Our AB 1482 guide for landlords explains which units are covered.
A voluntary move-out agreement isn’t a termination notice; the tenant agrees to leave. Two parts of the statute shape how one should be written:
- Waivers are void. Subdivision (j) says any waiver of rights under the section “shall be void as contrary to public policy.” An agreement should be a negotiated surrender of the tenancy for payment, not a document in which the tenant signs away just-cause rights.
- Remedies are real. An owner who violates the section can owe actual damages, attorney’s fees at the court’s discretion, and up to three times actual damages plus punitive damages for willful, oppressive, fraudulent or malicious conduct.
Pressure tactics are a separate problem. Civil Code section 1940.2 bars landlords from conduct aimed at influencing a tenant to vacate, including certain theft or trespass violations, significant and intentional violations of the entry rules, and threats to disclose a tenant’s immigration or citizenship status.
A tenant who wins a case can recover a civil penalty of up to $2,000 for each violation. Our guide to just cause eviction rules covers the causes themselves.
San Francisco: buyout agreements under Section 37.9E
San Francisco regulates buyouts in Rent Ordinance Section 37.9E, as amended by Ordinance No. 36-20. The city’s buyout page sets out the steps in order:
- Disclose before talking. Before any buyout discussion, written or spoken, the landlord gives each tenant in the unit a completed Pre-Buyout Negotiations Disclosure Form, and keeps each signed copy and its delivery date for five years.
- File the declaration. After serving the disclosure and before negotiating, the landlord files a Declaration of Landlord Regarding Service of Pre-Buyout Negotiations Disclosure Form with the Rent Board.
- Wait 30 days. An agreement can be signed no sooner than 30 days after buyout discussions begin.
- Put it in writing with the cancellation right. The agreement must state that the tenant can cancel within 45 days after all parties sign it. The tenant can cancel in writing by hand delivery, mail or email.
- File the signed agreement. The landlord files a fully signed copy with the Rent Board within 14 days after the cancellation period ends, between day 46 and day 59. No filing is needed for an agreement the tenant cancelled.
An agreement that doesn’t meet the section’s requirements is ineffective, and the tenant can rescind it at any time. If the landlord doesn’t file by day 59, the tenant may file it and may void any waiver of rights or release of claims in it.
Filed agreements go into a searchable database with tenant identities redacted, and the city notes that a buyout may affect a landlord’s ability to convert the building to condominiums. Our guide to buying an apartment building in San Francisco covers how filed buyouts show up in due diligence.
San Francisco relocation benchmarks
The sf.gov buyout page lists no minimum payment, but tenants and their advisers often compare an offer with what a no-fault eviction would cost. The Rent Board’s figures for March 1, 2026 through February 28, 2027:
| Eviction type | Per tenant | Maximum per unit | Additional for each elderly or disabled tenant, or household with minor children |
|---|---|---|---|
| Owner or relative move-in, demolition, capital improvement or substantial rehabilitation (Section 37.9C) | $8,245.00 | $24,733.00 | $5,497.00 (elderly means 60 or older) |
| Ellis Act withdrawal (Section 37.9A) | $11,110.05 | $33,330.13 | $7,443.90 for each elderly (62 or older) or disabled tenant |
Oakland: the Tenant Move-Out Agreement Ordinance
Oakland’s ordinance, Oakland Municipal Code 8.22.700 and following sections, took effect May 1, 2018 and covers rental units protected by the city’s just-cause rules, which the city says includes most rental units. According to the city’s information sheet and its 2026 tenant notice:
- Notice first. Before making any offer or discussing a move-out, the owner gives the tenant the city’s Notice of tenant move-out negotiation rights and files a certification with the Rent Adjustment Program confirming it was given.
- Cancellation. The tenant may rescind within 25 days after signing; the parties can agree in writing to a shorter period, but not less than 15 days.
- Minimum value. If the tenant would otherwise qualify for relocation, the agreement must pay more than that amount, and an agreement for less is voidable.
- No repeated offers. Once a tenant says in writing that they don’t want to negotiate or receive offers, the owner can’t make another offer or discuss a move-out for at least six months; the city’s notice says doing so is harassment under Oakland’s Tenant Protection Ordinance (OMC 8.22.640).
- Filing. Owners file move-out agreements with the Rent Adjustment Program, and the city says agreements and related documents may be subject to public disclosure, with personal information redacted where possible. A non-compliant agreement may be rescinded for up to six months.
Oakland’s Uniform Relocation Ordinance amounts for July 1, 2026 through June 30, 2027 are $8,293 for a studio or one-bedroom unit (the city’s two 2026 documents show $8,293.13 and $8,293.45), $10,206.93 for a two-bedroom and $12,599.18 for three or more bedrooms, plus a single $2,500 per unit for households with lower-income, elderly or disabled tenants, or minor children. The amounts adjust for inflation each year. Our guide to Oakland rental property rules covers the rest of the city’s rent program.
Berkeley and unincorporated Sonoma County
Berkeley’s Rent Board raised its relocation payment for owner move-in and Ellis Act evictions to $19,413 effective January 1, 2026, with an additional $6,471 for qualifying households. We did not find a separate Berkeley buyout-filing rule in the Rent Board pages we reviewed, so ask the Rent Board before you negotiate; our Berkeley rent stabilization guide for owners covers coverage and registration.
In unincorporated Sonoma County, Ordinance 6496 requires landlords covered by just-cause rules to pay no-fault relocation equal to the greater of the actual rent or HUD’s fair market rent for the unit size, and requires every landlord to file termination information through the county’s online portal within three days of giving notice. The county’s landlord page doesn’t address buyouts, so a voluntary agreement there follows the state rules above. Our Sonoma County multifamily guide covers the local market.
Elsewhere in the East Bay, rules vary city by city; see our East Bay rent stabilization comparison.
Rules compared
| Where | Before negotiating | Tenant’s cancellation period | Filing | Payment benchmark |
|---|---|---|---|---|
| California generally | No state form | None set by statute | None | One month’s rent for a no-fault termination of a covered tenancy |
| San Francisco | Pre-Buyout Negotiations Disclosure Form to each tenant; declaration filed with the Rent Board; 30-day wait before signing | 45 days after all parties sign | Signed agreement filed with the Rent Board between day 46 and day 59 | No minimum stated; no-fault relocation figures are the usual reference |
| Oakland | City notice to tenant; certification filed with the Rent Adjustment Program | 25 days, or not less than 15 if agreed in writing | Agreement filed with the Rent Adjustment Program | Must exceed relocation the tenant would otherwise get |
| Berkeley | Ask the Rent Board | Ask the Rent Board | Ask the Rent Board | $19,413 owner move-in or Ellis relocation, plus $6,471 for qualifying households |
| Unincorporated Sonoma County | State rules | State rules | Termination notices filed within three days (not buyouts) | Greater of actual rent or HUD fair market rent for no-fault terminations |
Structuring the agreement
- Confirm the tenancy’s status. Is the unit covered by state or local just-cause rules, and would the tenant qualify for relocation? That sets the legal floor and the realistic range.
- Give any required local notice before the first conversation. In San Francisco and Oakland, an offer made before the disclosure can taint the whole agreement.
- Put the offer in writing. Spell out the amount, the move-out date, the condition the unit must be left in, how the security deposit will be handled, and what happens if the date slips.
- Tie payment to the keys. DRE’s alert advises occupants never to hand over keys until the money is delivered, so plan a handover where payment and keys change hands together, or hold funds with a neutral party.
- Include the cancellation language and filing steps the city requires, and calendar the deadlines.
- Have counsel draft or review it. Releases, deposit terms and local requirements are where these agreements usually fail.
DRE also warns that a person who solicits or negotiates these deals for someone else generally needs a real estate license, while simply handing over a check for keys “arguably falls outside of licensed activity,” and that licensees can be liable for unlicensed helpers they hire. Its 2012 alert cited anecdotal offers of $500 to $5,000 in REO cases; that range is dated and well below current Bay Area relocation figures.
Cash for keys in a sale
When a building sells with tenants in place, the leases and the tenants’ rights transfer with it. Decide in the purchase agreement who negotiates any move-out, who pays, and what happens if a tenant declines or cancels within the local window.
A buyer who needs a vacant unit should make that a condition with a clear date rather than assume the seller can deliver it. Our guides to buying property with tenants in place and selling a rental property in California cover the contract terms and the rent records to collect.
Payments under these agreements can have tax consequences for both sides. Ask a tax adviser how to treat and report them before you sign.
This is general information, not legal or tax advice; talk to a California landlord-tenant attorney or tax adviser about your situation.
Questions people ask
Is cash for keys legal in California?
Yes, when the tenant agrees voluntarily and the agreement follows local rules. It can’t waive the tenant’s rights under Civil Code 1946.2, and in San Francisco and Oakland it must follow the city’s disclosure, cancellation and filing requirements.
How much is a typical cash for keys offer?
No statute sets one. Owners and tenants often start from what a no-fault eviction would cost: one month’s rent under state law, or local relocation such as San Francisco’s $8,245 per tenant for an owner move-in, Oakland’s $8,293 to $12,599 per unit, or Berkeley’s $19,413.
What is a San Francisco buyout disclosure?
The Pre-Buyout Negotiations Disclosure Form the landlord must give each tenant before any buyout discussion, followed by a declaration filed with the Rent Board. Negotiations can’t produce a signed agreement until 30 days after they start.
Can a tenant cancel a buyout agreement?
In San Francisco, within 45 days after all parties sign. In Oakland, within 25 days, or a shorter agreed period of at least 15 days. A non-compliant agreement can be rescinded later in both cities.
Do I have to file a buyout agreement with the city?
In San Francisco, within 14 days after the 45-day cancellation period ends. In Oakland, owners file copies with the Rent Adjustment Program. State law has no filing requirement.
Can I keep offering a tenant money to leave?
In Oakland, not for six months after the tenant says in writing they don’t want offers; repeated offers count as harassment there. Anywhere in California, conduct aimed at forcing a tenant out can violate Civil Code 1940.2.
Can a cash for keys agreement waive AB 1482 protections?
No. Civil Code 1946.2(j) makes any waiver of the section’s rights void. Draft the agreement as a voluntary move-out for payment, with counsel’s help.
Weighing whether to sell a building occupied or vacant, or buying one where move-outs are part of the plan? Talk with our investment property team about the numbers on both paths before you decide.
Sources & notes
- California Public Law: Civil Code section 1946.2 (just cause, relocation, waiver)
- California Public Law: Civil Code section 1940.2 (conduct to influence a tenant to vacate)
- City and County of San Francisco: Tenant buyout agreements (Rent Ordinance Section 37.9E)
- San Francisco Board of Supervisors: Ordinance No. 36-20, amending Rent Ordinance Section 37.9E (tenant buyout agreements)
- San Francisco Rent Board: Current rates, including relocation payments (form 577, August 2026)
- City of Oakland: Tenant Move-Out Agreement Ordinance information sheet (July 16, 2025)
- City of Oakland: Notice to tenants of move-out negotiation rights (2026)
- City of Oakland: Uniform Residential Tenant Relocation Ordinance information sheet (May 28, 2026)
- Berkeley Rent Stabilization Board: 2026 adjustments to relocation assistance payments
- County of Sonoma: Residential Tenancy Protections Ordinance (6496), information for landlords
- California Department of Real Estate: Cash for Keys, information for consumers and DRE licensees (revised April 2012)
Last reviewed October 2026 by Matthew Martinez.
