How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask CalAttorney2 Your Own Question
CalAttorney2
CalAttorney2, Lawyer
Category: Real Estate Law
Satisfied Customers: 10238
Experience:  I am a civil litigation attorney with experience representing HOAs, homeowners, businesses and others in real estate matters.
71563194
Type Your Real Estate Law Question Here...
CalAttorney2 is online now
A new question is answered every 9 seconds

I need a lawyer in San Francisco who knows the San Francisco

Customer Question

I need a lawyer in San Francisco who knows the San Francisco market to answer this. I am purchasing a 1 Bedroom Apartment in a 6 unit TIC building, built in 1906 in San Francisco, in a rent-control area. The tenants (a couple) is paying $3200 for the place
which if fair market rent. However the tenants have expressed that they do not want to move. I am planning on owner occupying this unit. It is a 6 unit built in 1906. Once I complete the purchase I will own 15.25% of the whole property. I need to know the
parameters of getting them out to owner-occupy the unit. 1. What are the ways to get them to move? The have turned down $20,000 from the current owner. More than that makes little financial sense. 2. I'm told I can borrow a percentage from another owner and
if own 25% I can make the current tenants move, and pay them $5,600 and they have to move. I need to know the parameters of getting them out to owner occupy the unit. 3. Further, the place is being converted into condos. I'm told once the conversion is completed
it would be impossible to get them to move.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  CalAttorney2 replied 1 year ago.

Dear Customer,

I have practiced real estate law in the Bay Area, and from what you are posting I can tell you that you really need to speak with a local attorney prior to closing your escrow. (I know customers don't come to this site to be told "go hire an attorney" but please let me explain why I am giving this advice in this particular instance).

You are buying in with less than 25% ownership (so an Owner Move In ("OMI") isn't going to work for you (see: http://www.sfrb.org/index.aspx?page=965). You can try purchasing additional shares or interests from your new neighbors, but there isn't a way to "borrow" an additional 15% in order to bridge the gap - if you do try to do this, proceed with caution and with legal counsel.

You can try buying the unit and then doing a lease termination and pay the relocation expenses. You must follow the "Ellis Act" precisely (see: http://www.sfrb.org/index.aspx?page=966), again, I recommend caution, and legal counsel (as a precautionary measure to ensure you meet these requirements).

But, regardless of how you terminate the tenancy, evicting a tenant can affect the lottery for the conversion of the TIC (see: http://www.andysirkin.com/HTMLArticle.cfm?Article=2), so you must again be careful here.

Bot***** *****ne: it is possible to move into your new home, move out the new tenants (although you may have to pay them), and have the TIC conversion. But with the numerous steps and specific issues that must be addressed, it is simply too factually complex for me to tell you on this forum how to proceed (we can offer "general legal information" but cannot provide you with "specific legal instruction" which is what you really need here).

You can find local landlord tenant attorneys (there are many in SF and Oakland familiar with the Ellis Act, using the State and local Bar Association directories (the BASF directory is excellent), or private directories such as www.AVVO.com; www.FindLaw.com; or www.Martindale.com (I personally find www.AVVO.com to be the most user friendly).

Related Real Estate Law Questions