first time buying a property (lease, lawyer, payment, real estate)

[firsttimebuyers]

We are looking at a muti-unit property with several un-permitted units in the city of Los Angeles. Would it be illegal to approach the tenants of those units, for a buy-out for relocation, without going through the city?

[NJ Chutzpah]

no buying out is not illegal, at least not in NYC

But they can play games with you, and negotiate a high price

and what do you mean by unpermitted, unregistered?

also are you going in zero down?

[sunsprit]

IIRC, Calif doesn't require you as the "new owner" of a property to honor the existing leases.

I went through that many years ago in CA, and even my damage deposit was forfeited to the seller; the reason I knew a new owner had taken over was because they came to me and demanded that I sign a new lease and give them a new damage deposit and last month's lease payment.

I think you're under no obligation to continue the leases on "non-permitted"; ie, not properly zoned or in compliance with all the Certificate of Occupancy requirements for a legal rental unit.

So, in buying the unit, you'd have the right ... if not the obligation ... to either bring the units into compliance or evict the tenants.

[firsttimebuyers]

Does this apply even if the property is under LA rent control?

[sunsprit]

Originally Posted by firsttimebuyers

Does this apply even if the property is under LA rent control?

Sounds like you'd best settle in for a visit with your Real Estate Lawyer.

There's going to be some issues with a "rent-controlled" property tenant in an otherwise not up to zoning spec rental unit.

As a prospective new owner of the property, you may be buying into a trail of problems that the seller is trying to walk away from.