Selling Tenant Occupied Property in California and What Attorneys Want You to Know
Feb 12, 2026How to Sell Rental Property with Tenants in California According to Real Estate Attorneys
Selling a tenant-occupied property in California requires careful legal navigation. In this evergreen interview from The Kapowich Vault, California real estate broker Pat Kapowich sits down with real estate attorneys Adam Pedersen and Ashlee Gonzales from Brewer Offord & Pedersen LLP to reveal critical strategies for landlords, sellers, tenants, and real estate agents.
WHAT YOU'LL LEARN:
- Why you should plan a tenant-occupied sale at least one year in advance
- How rent control and just cause eviction laws limit your options
- The Notice of Sale and Entry form every seller's agent should use
- How tenant estoppel certificates protect both buyers and sellers
- Why tenant-occupied properties sell for 20-30% less than vacant homes
- Cash for keys negotiations and mandatory relocation payments
- Tenant rights when a property is being sold
- How buyers inherit existing lease obligations
Complete chapter list:
0:00 Introduction and why tenant-occupied sales are challenging
0:51 Plan one year in advance before selling
1:37 DIY lease dangers and tax deadline traps
2:36 Rent control and just cause eviction explained
3:40 Mandatory relocation payments can reach $10,000-12,000
4:17 Plan ahead to avoid costly mistakes
4:35 1031 exchange and tax considerations
5:05 Let the lease expire for the cleanest approach
5:44 Know your limits as a real estate agent
6:53 Tenant-occupied homes sell for 20-30% less
7:34 Incentivize tenant relocation
7:46 Impact on rent-controlled properties
8:07 Advice for seller's agents
8:43 Notice of Sale and Entry form (C.A.R.)
9:35 Consolidate inspections and showings
10:41 Approach tenants with mindfulness and respect
11:22 Disclosure obligations for seller's agents
11:41 Tenant estoppel certificates explained
12:31 The estoppel stops future disputes
13:29 Section 8 rent supplement disclosure case
14:55 Environmental disclosures like barking dogs
15:53 Tenant rights survive the sale
16:35 Tenants have leverage in negotiations
17:13 Cash for keys negotiation strategies
17:29 Cash for keys buyouts can exceed $50,000
18:09 Working with the seller's agent as a tenant
18:57 24-hour notice and Civil Code Section 1954
19:50 Build a relationship with the new buyer
20:18 Should tenants get legal advice for the estoppel?
21:27 Working with buyer's agents and preventing trespass
22:23 Listing instructions to protect tenant access
22:55 Wrap-up and final advice
NEED LEGAL HELP WITH A TENANT-OCCUPIED PROPERTY?
Contact Brewer Offord & Pedersen LLP
Phone: (650) 327-2900
Real Estate Attorneys
Adam Pedersen, Esq. (ext. 20)
Ashlee D. Gonzales, Esq. (ext. 22)
2225 El Camino Real, Palo Alto, CA 94306
Website: brewerfirm.com
ABOUT THIS VIDEO:
From The Kapowich Vault: This evergreen interview covers California landlord-tenant law as it relates to selling occupied property. While specific laws may change, the core concepts and strategies discussed remain valuable for anyone navigating this complex situation.
REMINDERS:
- View my other YouTube channel: Kapowich Real Estate Market Intelligence
- Need help making a move? Reach out! If outside my service area, I can connect you with a credentialed Realtor from my network. Referral fees among agents are part of the referral process.
DISCLAIMER:
This video is for educational purposes only and does not constitute legal advice. Laws change frequently. Consult with a qualified real estate attorney for advice specific to your situation.
Special thanks to CreaTV San Jose for studio production.
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