In Santa Monica, a landlord who wants to pay a tenant to move out has to give the tenant a city-approved rights notice before making any offer. The tenant then has 30 days after signing to cancel, and the landlord has to file the signed agreement no sooner than day 31 and no later than day 60. The rules sit in Chapter 4.57 of the Santa Monica Municipal Code and Rent Control Regulation 9011. A buyout that skips any of these steps can be cancelled by the tenant at any time, and the landlord may end up paying twice.

This matters most to owners who want to sell. A vacant unit usually sells for more, and to more kinds of buyers, than one with a long-term rent-controlled tenant in it, so the buyout is often the first step of the sale. Below is the procedure step by step, the minimum payment set by the city’s relocation-fee schedule, and the mistakes that leave owners with a tenant still in the unit after the money is paid.

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Why Santa Monica Has Its Own Buyout Rulebook

Santa Monica is an independent city in Los Angeles County, and it runs its own rent control system through an elected Rent Control Board. That system is separate from the City of Los Angeles Rent Stabilization Ordinance and from the statewide Tenant Protection Act (Civil Code 1946.2 and 1947.12). Owners who have dealt with a buyout in the City of Los Angeles sometimes assume the same forms and deadlines apply on the other side of the city line. They do not. Los Angeles has its own disclosure and filing process with the Los Angeles Housing Department. Santa Monica’s process is different, with its own filing office, its own minimum amount and its own penalties.

The city’s buyout ordinance covers more than rent-controlled apartments. Chapter 4.57 applies to buyout agreements in general, and the filing rule sends agreements for rent-controlled units to the Rent Control Board and agreements for non-rent-controlled units to the City Clerk. A rent-control-exempt home can still be covered.

Step One: Hand Over the Rights Notice Before Any Offer

Under SMMC 4.57.020(b) and Regulation 9011(a), the landlord or the landlord’s agent must give the tenant a written notice of the tenant’s rights before offering any payment to move out. “Before any offer” is meant literally. A casual “would you consider moving if we paid you?” in the hallway can count as an offer, and making it before the notice has been delivered is already a violation.

The notice is a standard form published by the Rent Control Board and the city’s Housing Office. It tells the tenant, among other things:

that the tenant has the right not to enter into a buyout agreement at all;
that the tenant may consult an attorney, or the Rent Control Board for a rent-controlled unit, before signing;
that the tenant is entitled to at least the city’s permanent relocation fee under SMMC 4.36.040; and
that the tenant may cancel a signed agreement within 30 days.

The tenant signs a statement on the form confirming they received it, and the landlord signs a declaration confirming they gave it. The city’s information packet says the landlord must keep a copy of the signed notice for at least five years. If a property manager is negotiating for you, make sure they use the current form.

The Minimum: Santa Monica’s Relocation Fee Sets the Floor

Santa Monica does not let a buyout settle for less than what the tenant would receive in a no-fault eviction. SMMC 4.57.010(c) ties the minimum buyout amount to the permanent relocation fee in SMMC 4.36.040. The city adjusts that fee every July 1 based on the Consumer Price Index. The schedule published by the city’s Housing Office for the period beginning July 1, 2026 is:

Single unit: $20,500, or $21,450 if the household includes a senior, a disabled tenant or a minor child
One-bedroom unit: $28,300, or $30,200 for a household with a senior, disabled tenant or minor child
Two or more bedrooms: $39,350, or $41,900 for a household with a senior, disabled tenant or minor child

The city’s relocation FAQ defines the qualifying household as one where a displaced tenant is 62 or older, disabled, or has a child under 18. These are minimums, not market prices. In practice, a long-term tenant paying far below market rent often has a much higher figure in mind, because the buyout is pricing years of below-market rent they will not find elsewhere. Our earlier piece on what tenant buyouts tend to cost across Los Angeles covers how those negotiations usually go. In Santa Monica, though, a signed agreement below the city’s floor is not just a bad deal for the tenant. It does not meet the ordinance.

Always check the current schedule on the city’s website before you put a number in writing. The figures change every July. An agreement written in June using last year’s table can fall short if it is signed after July 1.

What the Written Agreement Has to Say

SMMC 4.57.020(c) sets out the contents of the agreement itself. It must be in writing, and the tenant must get a copy at the time they sign. Near the tenant’s signature line, in bold type of at least 14 points, the agreement must state three things in substance:

That the tenant may cancel the agreement in writing at any time before the thirtieth day after all parties have signed it.
That the tenant has a right not to enter into a buyout agreement.
That the tenant may consult an attorney, or the Rent Control Board for a rent-controlled unit, before signing, and that the Board may have information about other buyout agreements in the neighborhood.

The agreement must also be for at least the minimum buyout amount described above. An agreement that is missing a required statement, or that pays less than the minimum, does not take effect. The packet says such an agreement “may be rescinded by the tenant at any time.” That cancellation right does not expire after 30 days. A tenant could take the money, stay, and later rescind an agreement that never met the requirements, which leaves the owner arguing about repayment instead of handing over a vacant unit at closing.

The 30-Day Cancellation Window

Even a perfectly drafted agreement can be cancelled by the tenant for up to 30 days after every party has signed (SMMC 4.57.020(d)). The tenant cancels by hand-delivering, emailing or mailing a written statement to the landlord. They do not have to give a reason.

That window shapes how a sale should be timed. If you are selling, plan around these points:

Do not set a closing date that assumes the unit is vacant until the 30-day window has passed and the tenant has actually moved out.
Structure payment so a large share is released at move-out, and coordinate with the buyer and escrow on when the funds are disbursed.
Keep a copy of every message from the tenant during the window, because a cancellation can arrive by email.
Tell your buyer in writing that a buyout is in progress and when the cancellation window closes, so nobody is surprised.

Filing the Agreement: The Day 31 to Day 60 Window

The filing rule is the step owners most often miss, because it happens after the tenant has already signed and sometimes after they have moved out. Under SMMC 4.57.020(e) and Regulation 9011(b), the landlord must file a copy of the signed buyout agreement no sooner than the 31st day and no later than the 60th day after all parties have signed. Agreements for rent-controlled units go to the Rent Control Board, and agreements for non-rent-controlled units go to the City Clerk.

The “no sooner than” part trips people up. Filing too early, inside the tenant’s cancellation window, is not compliance, because the agreement could still be cancelled. Filing after day 60 is late. The city’s process explainer says the Board keeps filed agreements in a file separate from other records and publishes data about them only in a form that does not identify anyone.

Failing to file on time does not undo the agreement by itself. But under the ordinance, a missing or late filing can be raised as an affirmative defense in an eviction case the landlord later brings to recover the unit. That matters if the tenant takes the payment and then does not leave, because the landlord’s main tool for removing them is now weakened. Put the day-31 and day-60 dates on the calendar the day the agreement is fully signed.

Penalties, Harassment Rules and the Six-Month Freeze

Santa Monica attached real penalties to its buyout rules. Under SMMC 4.57.030, a violation can be charged as a misdemeanor, with a fine of up to $1,000, up to six months in county jail, or both. In a civil lawsuit, which the tenant or the city can bring, the landlord can owe actual damages or statutory damages between $1,000 and $20,000, whichever is greater, plus attorney’s fees and costs. An additional civil penalty of up to $5,000 per offense applies when the tenant is disabled or 65 or older, and punitive damages are available under Civil Code 3294.

There is also a pressure rule. If a tenant tells the landlord in writing that they do not want to discuss a buyout, offering them money to leave within the next six months may count as bad-faith harassment under SMMC 4.56.020(f). Santa Monica’s tenant harassment ordinance is separate and has its own penalties. In practice, a tenant’s “no” freezes the subject for six months. A buyer who plans to buy a unit and “work something out” with the tenant later needs to know that the tenant may already have closed that door in writing.

How a Buyout Fits Into a Santa Monica Sale

Owners usually reach this point by one of three routes:

The owner wants to sell the property vacant, because vacant units appraise and sell more easily, and offers a buyout first.
The owner inherited a building with long-term tenants and wants to settle the estate.
A buyer is willing to purchase only if the unit is delivered vacant, and asks the seller to handle the buyout before closing.

In each case, the buyout is a contract between the landlord and the tenant, and the ordinance’s duties fall on the landlord who makes the offer. If you sell before a buyout is finished, the new owner takes on the same duties for any buyout it negotiates. Do not let a buyer’s representative negotiate with your tenant on your behalf while you still hold title unless the rights notice has already been delivered.

Remember too that a buyout is voluntary. A tenant with a rent-controlled lease and no fault-based reason for eviction is entitled to stay. The other routes for an owner to recover possession, such as an owner move-in or withdrawing the building under the Ellis Act, have their own notice periods and relocation payments under the city’s rules and state law. Our overview of how Ellis Act withdrawals work in California explains why that route is rarely the fast one.

Selling With the Tenant in Place Instead

A buyout is not the only way out of a tenant-occupied Santa Monica property. An owner can also sell with the tenancy in place. The buyer takes over the lease, the security deposit and the tenant’s rights, and the price reflects the rent being paid and how long the tenant is likely to stay. California law requires the seller to transfer the security deposit to the buyer or refund it to the tenant, and to notify the tenant in writing, under Civil Code 1950.5(h). The buyer will also usually ask the tenant to sign an estoppel certificate confirming the rent, deposit and lease terms. Our guide to tenant estoppel certificates in California covers what goes into one.

Selling occupied avoids the buyout procedure entirely, but it changes the pool of buyers and the price. Owner-occupant buyers mostly want vacant property. Investors who understand Santa Monica rent control will buy occupied units, but they price in the below-market rent.

When a Cash Sale Is the Wrong Choice Here

A cash sale is not always the right answer for a tenant-occupied Santa Monica property, and it is worth saying so plainly. If the tenant has already agreed to leave, the buyout is signed and filed correctly, and the unit will be vacant within a few weeks, a vacant Santa Monica home or condo listed on the open market will often net more than a direct sale. The same is true if the building is in good condition and you can wait out a normal listing period. If your main problem was the tenant and the tenant problem is solved, listing with an agent who knows the Westside market is likely the better route.

A direct sale makes more sense when the tenant will not take a buyout, when the 30-day cancellation window and the filing deadline add up to more delay than you can carry, when the property needs work that a financed buyer’s lender will not accept, or when you are settling an estate and need a certain closing date. In those cases, selling with the tenant in place to a buyer who understands the rules can be cleaner than running a buyout under time pressure.

A Practical Buyout Checklist for Santa Monica Owners

Confirm whether the unit is rent-controlled, so you know whether the agreement will be filed with the Rent Control Board or the City Clerk.
Download the current buyout notice and the current relocation-fee schedule from the city’s website before any conversation about money.
Deliver the notice, get the tenant’s signed acknowledgment, sign the landlord declaration, and keep a copy for at least five years.
Make sure the offer is at or above the current minimum for the unit size and the household.
Put the three required statements in bold, at least 14-point type, next to the tenant’s signature line.
Give the tenant a copy of the signed agreement on the day they sign.
Calendar day 30 (end of the cancellation window), day 31 (first filing day) and day 60 (last filing day).
File on time with the correct office and keep proof of filing.
If the tenant says no in writing, stop and do not raise the subject again for six months.
Coordinate move-out, payment and the sale’s closing date with escrow so the buyer gets the unit in the condition the contract promises.

Questions Santa Monica Owners Ask About Buyouts

Does the buyout ordinance apply if the unit is not rent-controlled? Yes. The filing rule names both kinds of units and sends non-rent-controlled agreements to the City Clerk. The rights notice and the cancellation right apply either way.

Can a tenant cancel after cashing the check? Within 30 days of the last signature, yes. If the agreement never met the ordinance’s requirements, the tenant can cancel at any time. That is why drafting the agreement correctly matters more than speed.

Who do I call with questions? The Rent Control Board’s public office handles questions about rent-controlled units and can be reached at (310) 458-8751. For non-controlled units, the city’s Housing Office publishes the relocation schedule and related guidance.

If you are weighing a buyout against simply selling, our page on how to sell a house with tenants in Santa Monica explains how a direct sale works when the tenant stays. For a no-obligation cash offer, contact Cash Home Buyers CA or call (424) 435-2326. When you sell to us, we pay the standard closing costs, including the county and city transfer taxes, escrow and title. You can also find Cash Home Buyers CA on Google to see where we are based and how to reach us.

Santa Monica Tenant Buyout Agreements: The Notice, the 30-Day Cancel and the Filing Window