San Jose's Tenant Buyout Ordinance regulates cash-for-keys deals at covered apartments. Landlords must serve a written disclosure of tenant rights, allow a 30-day rescission period, and file the executed agreement with the Housing Department.
SJMC 17.23.1400 governs voluntary buyout offers for units covered by the Apartment Rent Ordinance and Tenant Protection Ordinance. Before negotiating, the landlord must serve a Disclosure Notice on the city-approved form explaining the tenant's right to refuse, consult an attorney, and seek relocation pay if a no-fault eviction follows. The signed agreement must be in writing, in the tenant's primary language when feasible, list each tenant's rights, and include a 30-day rescission clause. The landlord files an executed copy with the San Jose Housing Department within a set window after signing. A buyout missing the disclosure or filing is rescindable by the tenant and unenforceable by the landlord.
Buyouts lacking the required disclosure or Housing Department filing are unenforceable, tenants may rescind, and landlords face Housing Department penalties plus possible damages in tenant-initiated lawsuits.
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