How to Fill Out and File a California Voluntary Vacate Agreement

A California voluntary vacate agreement is a private contract in which a landlord pays a tenant a negotiated sum to give up the lease and move out, avoiding an eviction filing. Sometimes called a tenant buyout or “cash for keys,” the agreement is enforceable under ordinary California contract law, but if the rental is in San Francisco, Los Angeles, Berkeley, Santa Monica, Oakland, or Alameda, a local buyout ordinance adds mandatory disclosures, a cooling-off period, and a filing deadline. Skipping any of those local steps can void the deal.

What the Agreement Must Contain

Whether or not a city ordinance applies, the written agreement needs to spell out every term either side might later dispute. At a minimum, include:

Full legal names of every adult tenant on the original lease and the property owner or authorized agent, plus the complete street address with unit number.
The buyout amount and payment structure. State the total dollar figure and whether it will be paid as a lump sum at move-out, in installments tied to milestones such as half at signing and half at key turnover, or through some other arrangement.
The move-out date and time. Be specific: “by 5:00 p.m. on July 15, 2026,” not “mid-July.”
The condition of the unit at departure. Define “broom-clean” in concrete terms: personal property removed, floors swept, appliances cleaned, no holes in walls beyond normal wear.
Every key and access device the tenant must return — door keys, mailbox keys, garage openers, gate fobs.
The rescission statement required by your local ordinance, if one applies. Even where no ordinance requires it, including a voluntary cooling-off window strengthens enforceability because it shows the tenant had time to reconsider.
A mutual release of claims: both parties agree not to sue each other over matters related to the tenancy once the agreement is fully performed.

In regulated cities, additional mandatory language applies. Los Angeles, for instance, requires a bolded statement in at least 12-point type above the signature line reading: “You, [tenant name], may cancel this Buyout Agreement any time up to 30 days after all parties have signed this Agreement without any obligation or penalty.”¹ Missing a single required element can give the tenant grounds to void the entire agreement, so download the current disclosure and agreement forms directly from the local rent board or housing department.

City Rules: Disclosures, Rescission, and Filing

The differences between cities matter more than most landlords and tenants realize. Filing one day too early or too late, or skipping a required disclosure, can unwind the deal.

San Francisco

Administrative Code Section 37.9E is the most detailed buyout ordinance in the state. Before a landlord even begins discussing a buyout, each tenant must receive a written disclosure form developed by the Rent Board. That form must state the tenant’s right to refuse negotiations, the tenant’s right to consult an attorney, a list of tenants’ rights organizations, information about how the buyout could affect eligibility for the city’s affordable housing programs, and a note that the tenant can visit the Rent Board to review other buyout agreements in the same neighborhood.² The landlord must also file a declaration with the Rent Board confirming the disclosure was provided before negotiations started.³

Once both sides sign, the tenant has 45 days to rescind for any reason. The landlord cannot file the agreement with the Rent Board until at least 46 days after execution and must file no later than 59 days after execution. Violating any part of Section 37.9E can trigger an administrative fine of up to $5,000 per violation.²

Los Angeles

The Tenant Buyout Notification Program (LAMC 151.31) applies to units covered by the Rent Stabilization Ordinance. Before making any offer, the landlord gives the tenant an RSO Disclosure Notice, which the tenant signs and dates. The agreement itself must be written in the tenant’s primary language and must carry the bolded cancellation notice described above. The signed disclosure and agreement must be filed with the Los Angeles Housing Department within 60 days of execution. If the landlord fails to comply, the tenant can cancel the agreement at any time — not just within the 30-day window — and may raise an affirmative defense to any unlawful detainer action or bring a private civil action.¹

Berkeley

Berkeley’s Tenant Buyout Ordinance (BMC 13.79.050) gives tenants 30 days to rescind. To rescind, the tenant hand-delivers, emails, or mails a statement to the landlord no later than the 30th day after execution.⁴ After the rescission window closes, the landlord must file the agreement with the Rent Board no later than 60 days after all parties signed.⁵

Santa Monica

Chapter 4.57 follows a similar structure. The landlord provides a written disclosure before making an offer, including a statement that the tenant is entitled to at least a minimum buyout amount. Tenants have 30 days to rescind. The landlord files the agreement no sooner than the 31st day and no later than 60 days after execution. Failure to file can be raised as an affirmative defense if the landlord later tries to recover possession.⁶

Oakland and Alameda

Oakland’s Tenant Move-Out Agreement Ordinance gives tenants 25 days to rescind and guarantees the right to refuse any offer without landlord retaliation.⁷ Alameda’s Rent Program provides a 30-day rescission right and prohibits landlords from asking tenants to waive that right or to sign an irrevocable notice to vacate as part of the agreement.⁸

If the rental is outside these cities, no special disclosures or filing are required. The agreement is governed by ordinary California contract law and needs only offer, acceptance, and consideration (the payment) to be enforceable.

Keep the Security Deposit Separate

The buyout payment and the security deposit are separate obligations, and the agreement should treat them that way. Under California Civil Code Section 1950.5, a landlord must return the deposit — minus lawful deductions for unpaid rent, cleaning beyond normal wear, or damage — no later than 21 calendar days after the tenant vacates, with an itemized statement explaining any deductions.⁹

Some landlords try to fold the deposit into the lump-sum buyout, telling the tenant the total “covers everything.” That is risky for both sides. A court may later find the landlord failed to provide the required itemized accounting. The cleaner approach is to keep the buyout and the deposit return as two separate line items. The agreement can confirm that the standard Section 1950.5 process applies and that the 21-day clock starts on the move-out date stated in the agreement.

Signing, Walkthrough, and Payment

Every adult tenant on the lease and the property owner (or an agent with written authority) must sign. Digital signatures through platforms like DocuSign are generally acceptable in California, though landlords in cities with filing requirements should confirm the local agency accepts electronic signatures on filed documents.

Once executed, the filing clock starts. San Francisco’s window runs from day 46 to day 59. Los Angeles and Berkeley allow up to 60 days. Santa Monica’s window opens on day 31 and closes on day 60.²¹ The early-filing restrictions in San Francisco and Santa Monica exist because the rescission period must expire before the city will accept the filing.

On the agreed move-out day, both parties should walk through the unit together to confirm its condition matches the agreement’s terms. The final payment is typically exchanged at this point. A cashier’s check or electronic transfer is safer than cash because it creates a verifiable record. Have both parties sign a written receipt confirming the key handover and payment. That receipt can matter years later if either side disputes what happened.

The Tenant’s Right to Rescind

Every major California buyout ordinance guarantees a cooling-off period during which the tenant can cancel without penalty:

During this window, the tenant can back out for any reason: the offer wasn’t enough, they couldn’t find a new place, or they changed their mind. A landlord who retaliates against a tenant for rescinding, by raising rent, reducing services, or filing an eviction, violates the very ordinances that make these agreements voluntary. And in Los Angeles, a landlord who skips the required disclosures effectively hands the tenant an unlimited rescission right: the tenant can cancel at any time, not just within 30 days.¹

What a Buyout Typically Pays

The amount depends on the city, the rent-control savings the tenant would be giving up, the length of tenancy, and the local market. Data from the Los Angeles City Controller shows an average buyout of roughly $25,000 per unit across nearly 5,900 recorded agreements. Most payments fall between $5,000 and $50,000, though 51 buyouts exceeded $100,000.¹⁰ A tenant with a well-below-market rent in a desirable neighborhood has far more leverage than one paying close to market rate.

If you are negotiating as a tenant, calculate the gap between your current rent and what a comparable unit would cost at market rate, then multiply that monthly difference by the number of months or years you expected the savings to continue. That figure is a rough floor. Landlords typically weigh the buyout against the cost of a no-fault eviction, which in many rent-controlled cities includes mandatory relocation assistance that can itself run into the tens of thousands.

Tax Consequences

The IRS generally treats a tenant buyout payment as taxable income to the tenant. The payment is compensation for surrendering your leasehold rights, not a gift or a refund, so it goes on your federal return. If the payment is $600 or more, the landlord is required to issue a Form 1099-MISC with the amount reported in Box 3 (other income). A $25,000 buyout can mean owing several thousand dollars in federal and state income tax the following April, so factor that into any number you accept.

For landlords, the treatment is less straightforward. Federal regulations generally require capitalizing a payment made to terminate a lease rather than deducting it as an ordinary business expense in the year paid. The capitalized cost is then recovered over time, typically amortized over what would have been the remaining term of the terminated lease. Consult a tax professional, because the recovery period depends on what you plan to do with the unit after the tenant leaves.

Section 8 and Tenant Screening

Tenants on a Section 8 Housing Choice Voucher should think carefully before accepting a buyout. Under HUD’s income and asset rules, a lump-sum buyout is generally classified as an asset rather than annual income, which means it does not directly count toward the income calculation used to determine your voucher amount. It is counted as an asset, however, and any interest or return it generates could affect income calculations going forward.¹¹ If you spend the lump sum on something that is not itself an asset, such as moving expenses or a vehicle, HUD excludes it from the asset calculation entirely. San Francisco’s disclosure form specifically requires information about how a buyout could affect eligibility for the city’s affordable housing programs.²

One clear advantage of a voluntary vacate agreement over an eviction is what shows up on tenant screening reports. Eviction filings create housing court records that future landlords can see for up to seven years. A voluntary vacate agreement does not generate a court filing. The FTC notes that tenant background check companies report housing court records related to eviction actions, but a buyout agreement that never involves a court proceeding produces nothing for them to report.¹² For many tenants, that is the single strongest reason to negotiate a buyout rather than fight an eviction, since even a dismissed eviction case can leave a mark on your rental history.

1
Los Angeles Housing Department. Tenant Buyout Notification Program
2
American Legal Publishing. San Francisco Administrative Code SEC. 37.9E
3
San Francisco Residential Rent Stabilization and Arbitration Board. Declaration of Landlord Regarding Service of Pre-Buyout Negotiations Disclosure Form
4
Berkeley Municipal Code. BMC 13.79.050 – Buyout Offers and Agreements
5
Berkeley Rent Board. Tenant Buyout Ordinance
6
eCode360. Santa Monica Chapter 4.57 – Buyout Offers and Agreements
7
City of Oakland. Tenant Move-Out Agreement Ordinance Handout
8
City of Alameda Rent Program. Disclosure of Tenant’s Rights Related to Buyout Agreements
9
California Legislative Information. California Civil Code 1950.5
10
City of Los Angeles Controller. Cash for Keys
11
HUD Exchange. Part 5 (Section 8) Income and Asset Inclusions and Exclusions
12
Federal Trade Commission. Tenant Background Checks and Your Rights