Here’s a detailed list of possible questions about the Rent Cap and Just Cause Addendum, along with explanations for each:
- What is the purpose of the Rent Cap and Just Cause Addendum?
It informs buyers and tenants about California’s statewide rent control law (AB 1482) and the “just cause” eviction requirements that apply to certain residential properties.
- When is this addendum required?
It is generally required when the property being sold is a residential property that may be subject to AB 1482 rent cap and eviction laws, such as multi-unit properties and some single-family rentals.
- Does the law apply to single-family homes?
In most cases, single-family homes are exempt if owned by individuals (not corporations) and if proper exemption notices have been given to tenants. The addendum helps clarify this.
- What are the rent cap limits under AB 1482?
The law limits annual rent increases to 5% plus the local inflation rate (CPI), or 10% of the current rent, whichever is lower.
- What does “just cause” mean for evictions?
It means that after a tenant has lived in the property for 12 months, the landlord must have a legally valid reason (just cause) to terminate the tenancy—such as nonpayment of rent, breach of lease, or owner move-in.
- What’s the difference between “at-fault” and “no-fault” just cause?
“At-fault” includes tenant violations like unpaid rent or illegal activity. “No-fault” includes reasons like owner move-in or substantial renovations, which may require relocation assistance.
- Does the addendum require providing relocation assistance?
Yes, for “no-fault” evictions, landlords must pay relocation assistance equal to one month’s rent or waive the last month’s rent.
- How does this addendum impact the sale of tenant-occupied property?
It ensures the buyer understands the rent cap and eviction restrictions, which could limit rent increases or tenant removal after purchase.
- Does this addendum affect lease agreements already in place?
Yes, it clarifies that existing leases must comply with AB 1482, even if the property changes ownership.
- What disclosures must the landlord provide to tenants?
A written notice stating whether the property is subject to or exempt from AB 1482 must be given to tenants, and the addendum confirms this disclosure obligation.
- What happens if the seller never provided the AB 1482 notice to tenants?
The buyer may inherit the obligation to provide the notice and comply with rent caps and just cause rules from the date of purchase.
- Does the addendum cover local rent control laws?
Yes, it alerts parties that local city or county rent control laws may impose stricter rules than AB 1482.
- Can a buyer raise the rent immediately after purchase?
Only within AB 1482 limits, and in some cases, only after providing required notices.
- Does this addendum impact owner move-in plans?
Yes, because “owner move-in” is a no-fault cause that requires notice, relocation assistance, and compliance with tenancy length requirements.
Disclaimer:
The questions and answers provided are for general guidance only and may not cover all details or apply to every situation. If anything is unclear or you need further clarification, please visit car.org for official resources and the most up-to-date information from the California Association of REALTORS®.
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