What 2 Real Estate Attorneys Want Every Homebuyer and Investor to Know Before Buying a Tenant-Occupied Property
May 09, 2026Most homebuyers and investors do their homework on price, condition, and location. Very few do their homework on the tenant. 2 California real estate attorneys — Ashlee Gonzales and Adam Pedersen of Brewer Offord and Pedersen LLP — sat down to walk through exactly what homebuyers and investors miss before purchasing a tenant-occupied property.
Rent control you did not know existed. Relocation payments of up to $12,000 per adult tenant were not included in the budget. A trespass lawsuit was filed against a buyer simply for accessing the property during escrow. These are not hypotheticals. These are real cases the attorneys handled — and almost every one was completely avoidable.
From The Kapowich Vault — rules, regulations, market conditions, and professional affiliations may have changed. Always consult your legal, tax, and real estate professionals.
You found the property. The numbers work. The tenant seems fine. Then escrow closes — and everything falls apart.
Rent control you did not know existed. Relocation payments of $10,000 to $12,000 per adult tenant. A trespass lawsuit was filed against you and your real estate agent for accessing the property during escrow. These are not edge cases. They are real cases handled by the attorneys in this interview.
2 California real estate attorneys — Ashlee Gonzales and Adam Pedersen of Brewer Offord and Pedersen LLP — tell you exactly what homebuyers, investors, and their real estate agents miss before purchasing a tenant-occupied property. And why almost every problem they have seen was completely avoidable.
What you need to know before you make an offer
Tenant estoppel certificates — what they are and how 1 checkbox protects you
Rent control — which Bay Area cities have it and what it means for your investment
Relocation payments — up to $12,000 per adult tenant you did not budget for
MLS rent fraud — how sellers inflate rents weeks before listing and how to catch it
Trespass during escrow — how homebuyers have been sued for simply accessing the property
Tenant interference — what tenants who block a sale risk losing
Timestamps
0:00 — Introduction
0:16 — What to look for in the disclosure package
1:14 — The 3 documents every homebuyer must receive
1:47 — What a tenant estoppel certificate is
2:22 — How to make estoppel a contract contingency
3:09 — Old leases and hidden problems
4:35 — Real case: homebuyer missed rent control — could not remove tenants
5:32 — Real case: inflated rents, missing estoppel, investment value destroyed
6:25 — How sellers inflate MLS rents before listing
8:35 — What the fiduciary duty of a homebuyer's real estate agent actually requires
9:31 — Questions real estate agents must ask homebuyers at the first meeting
11:50 — How to coordinate inspections without alienating the tenant
12:47 — Notice of sale and entry form explained
14:18 — Real case: trespass lawsuit filed during escrow
15:21 — How to negotiate a tenant buyout
17:31 — Relocation payments: $10,000 to $12,000 per adult tenant
18:11 — Real case: seller's buyout fell short — ordinance violation
19:06 — What tenants risk when they interfere with a sale
22:14 — Closing advice: set times upfront, 24-hour notice, seller's real estate agent leads
About Ashlee Gonzales and Adam Pedersen
Ashlee Gonzales and Adam Pedersen are real estate attorneys at Brewer Offord and Pedersen LLP — a boutique Bay Area real estate law firm founded by Peter N. Brewer in 1995, with offices in Palo Alto and Redding.
https://www.brewerfirm.com/about-us/
https://www.brewerfirm.com/team/ashlee-d-gonzales-esq/
https://www.brewerfirm.com/team/adam-pedersen-esq/
This content is from The Kapowich Vault — for general informational purposes only. Not legal, tax, or real estate advice. Rules and market conditions may have changed. Always consult qualified professionals.
Pat Kapowich, CalDRE #00979413 | SiliconValleyBroker.com
