Claiming that sellers and buyers of rental property sometimes give tenants residing in buildings subject to the city’s rent ordinance the impression that their rights under the ordinance do not survive a sale of the building, Supervisor Chris Daly has won passage of his Rental Property Disclosure Ordinance. The ordinance is on the mayor’s desk awaiting his approval. It will go into effect 30 days after the mayor approves it, which he is expected to do.
The ordinance contains the following two key disclosure provisions:
Before property containing rental units subject to the city’s rent ordinance may be sold, the owner/seller must disclose to tenants of the property the rights of tenants during and after the sale of the property. The disclosure must be in writing and include specified statements.
Within 30 days of acquiring title to rental units subject to the city’s rent ordinance, the new purchaser/owner must disclose to tenants of the property the rights of tenants following the sale of the property. The disclosure must be in writing and include specified statements.
Support among the supervisors for the proposed ordinance, which does not in any way diminish the rights of rental property owners, was overwhelming. Only Supervisor Michela Alioto-Pier voted against it.
It is believed that the requirements of the ordinance can be appropriately addressed by simple disclosure forms and advisories that can be drafted by the Association and distributed electronically to members through this publication.
Source: San Francisco Association of Realtors