As new homeowner intending to live in the property I purchased, do I need to pay relocation fee to the tenant ?

Question

Bought home in La County that was foreclosure owned by Fannie Mae since 2009. There was a tenant living in the property as Fannie Mae would not remove from property. currently going through an eviction to remove the tenant who has lived in that property. He has replied that he is entitled to relocation fee about $21K so that he may move out, as he says he is a qualified tenant and 62 years old. But I am first time buyer with intent to live in property. Do I need to pay relocation fee. I know he is entitled to remain for 90 days after forclosure property has been bought but need assistance with this relocation question 

Answer 1

Most of the answers so far are wrong, because people who aren't familiar with the idea of rent control laws can't seem to comprehend the fact that rent control laws sometimes include required relocation fees.



Obviously, your attorney should be your final source of advice for this matter, but I don't blame you for asking here.



From what I've found online, the relocation fee would NOT apply to your situation if this is the only home you own. The requirements I found say that relocation fees apply to multi-family properties and landlords who own at least 4 housing units in addition to their primary residence. There are also some rules about boarding houses.



So from what I can find online, you won't have to pay a relocation fee as long as this is a single family home and its the only home you own and you aren't running a business renting out other properties.If I were in your shoes I simply wouldn't respond to the tenant at all regarding relocation fees. Let your attorney handle those communications. You don't want to say anything that could be incorrectly interpreted as a promise or commitment to pay, because that could be held against you in court even if you aren't otherwise required to pay.



The source for my answer is linked below but there's no guaranteed that page is accurate or up to date since many of these laws are fairly recently implemented.Also, as one person suggested it might be worth trying to negotiate a cash-for-keys agreement. Go to your tenant and say look, you aren't entitled to relocation fees because the law doesn't require it (show them the exception that applies), if you make me drag you to court for eviction I'm not going to pay you a dime, and I might even sue you afterward for unpaid rent and legal fees. But if you'll just pack up and move out right now I'll cut you a check for $5,000. Put that offer in writing (without the threat of suing) and see if they're smart enough to bite. In the end paying them $5k is probably cheaper than paying court fees, attorney fees, and whatever you're spending on temporary housing while you wait to move in.

Answer 2

Yes he's entitle to compensation but only $16,500.00  https://www.yourlegalcorner.com/articles.asp?id=142&cat=land

Answer 3

He's full of crap.

Answer 4

He is not entitled to anything, and I don't know why you think he is entitled to something. What the hell is a qualified tenant?



There is no such thing as a qualified tenant!

His age is irrelevant!



If he doesn't have a contract with you then he isn't entitled to anything. If a tenant said that to me then he, or she better sleep with both eyes open. Because I won't tolerate that person anymore!!!



The home that I am planning on buying is different than yours. If he was living with me without my consent then the chances of him dieing might be just as high as if you were to blow up your home, and he just, so happens to be in it.



I would tell him if you don't leave my home then the chances of you dieing will be high, and I won't save your life. I would also tell him I won't give you money. I would also say if you stay in my home then your death might be awful, and I won't take responsibility, for your death.



I can think of different ways how he can die in my home.

Answer 5

Los Angeles County is a big place.

Some of it has rent control; some of it doesn't.

Figure out if yours does or not.  If it does figure out what your cost to relocate him is and pay it. 

Answer 6

Why not ask your lawyer. Sounds ridiculous to me unless he can collect from the government.

Answer 7

you should be asking you're lawyer before you sign any contracts.

Answer 8

Even if you did, it wouldn't be $21K.



LA law says it has to be a multifamily property or a single family operated as a boarding house.



CA law says maybe you owe him one months' rent.



Consult a local lawyer.

Answer 9

What does your real estate attorney say in regard to the relocation that your tenant wants?  Surely you had legal representation in this purchase.



If not, consult an attorney ASAP.

Answer 10

Tell him the relocation fee will be be delivered to his backside via your size 11 boots and his new home will be on the moon when he will crash lands there.

Answer 11

If you owe him anything it sure as hell would not be that much. 



Many areas of CA have rent control. You have to check if any local laws are effective for your specific location. You really should have a real estate lawyer on this. Do it wrong & you can be sued.

Answer 12

Ask your attorney or real estate agent but $21k sounds ridiculous as a legal requirement.  If he has a lease, he may be entitled to stay until the lease expires and you give him proper notice you are not renewing his rental agreement.  To get him out earlier, you may have to offer him money and $21k may be what he wants.

 

Follow the law, CA is very friendly to tenants and breaking CA law can be very expensive for you.