I own rental property in Oakland, and I don’t want to sell any of my rental properties. Does TOPA require that I sell my rental property to anyone?
Not at all! TOPA does not force anyone to sell their property.. This policy supports the stabilization of Oakland communities by facilitating transactions between landlords and existing tenants if and when landlords decide to sell. It ensures that existing residents have an opportunity to buy the unit they have been renting from you.
So this is not a way for the government to seize my private property?
No. The California Constitution and U.S. Constitution give you, as the owner of the property, the absolute right to determine if and when to sell your property. These same constitutional protections provide owners with the right to a fair return on their investment. This means that you cannot be forced to sell your property and cannot be forced to sell it for below what the market will bear.
I want to give my rental property to my heirs and keep it in my family. Will TOPA prevent me from doing this?
No! TOPA does not apply when selling a property to a spouse, domestic partner, parent, sibling, child, grandparent, or grandchild. TOPA also does not restrict the ability of an owner to gift or leave property to a person of their choosing, including family members or non-relatives, or charity.
How does TOPA affect me if I live in my single family home and choose to sell it?
It doesn’t. TOPA does not apply to single family homes that are owner occupied, even if you rent out rooms in your home. TOPA only applies here if you have an accessory dwelling unit (ADU) with a tenant. If you have a tenant in an ADU, they will be able to exercise TOPA rights.
If my property is subject to TOPA, who can make an offer?
Your tenants have the first right to make an offer or can partner with a Qualified Organization (QO, including certain nonprofit developers, cooperatives, and community land trusts) to make an offer. If the tenants, or a tenant-represented QO, do not make an offer an independent QO may make an offer under TOPA.
Does TOPA control the price owners can sell their property for?
No! The seller has the right to accept or reject the offer made by tenants or a QO and put the property on the market.
What happens if I reject the tenants/QOs’ offers and accept an offer from the market?
Under TOPA, you must give your tenants an opportunity to match an offer that you plan to accept. If they choose not to match that offer, any QO that has expressed interest also may match the offer. If no tenant or QO matches the offer, you may proceed with the 3rd party purchase.
How do I, as a landlord, make sure I am getting a fair offer?
After your tenant submits their letter of intent (LOI), tenants will make you an offer based on information that you provided to them at notice of sale. Prior to making an offer, the tenants may submit a request for additional information, like in any other home buying negotiation, to inform what offer they make. It is up to you to determine whether the tenants have made a competitive offer, and you can choose to reject it and put it on the market if you think it is not competitive.
Does this mean the value of my property decreases because I have to wait for my tenants to respond?
No. Because this process happens before you list your property on the market, it doesn’t affect the property’s number of days on the market. If the negotiation process with the tenant or a QO, doesn’t go through, you are able to list the property on the market. After listing your property, and receiving an offer, you will need to offer your tenant(s) and any interested QOs the opportunity to meet any third party offer if you intend to accept one.
What if I need to sell my property quickly?
The time frames for tenants and qualified organizations are reasonable. They mimic a regular home buying/selling process, with just a little more time for tenants to consider whether they want to buy the home and to put together an offer.
Not at all! TOPA does not force anyone to sell their property.. This policy supports the stabilization of Oakland communities by facilitating transactions between landlords and existing tenants if and when landlords decide to sell. It ensures that existing residents have an opportunity to buy the unit they have been renting from you.
So this is not a way for the government to seize my private property?
No. The California Constitution and U.S. Constitution give you, as the owner of the property, the absolute right to determine if and when to sell your property. These same constitutional protections provide owners with the right to a fair return on their investment. This means that you cannot be forced to sell your property and cannot be forced to sell it for below what the market will bear.
I want to give my rental property to my heirs and keep it in my family. Will TOPA prevent me from doing this?
No! TOPA does not apply when selling a property to a spouse, domestic partner, parent, sibling, child, grandparent, or grandchild. TOPA also does not restrict the ability of an owner to gift or leave property to a person of their choosing, including family members or non-relatives, or charity.
How does TOPA affect me if I live in my single family home and choose to sell it?
It doesn’t. TOPA does not apply to single family homes that are owner occupied, even if you rent out rooms in your home. TOPA only applies here if you have an accessory dwelling unit (ADU) with a tenant. If you have a tenant in an ADU, they will be able to exercise TOPA rights.
If my property is subject to TOPA, who can make an offer?
Your tenants have the first right to make an offer or can partner with a Qualified Organization (QO, including certain nonprofit developers, cooperatives, and community land trusts) to make an offer. If the tenants, or a tenant-represented QO, do not make an offer an independent QO may make an offer under TOPA.
Does TOPA control the price owners can sell their property for?
No! The seller has the right to accept or reject the offer made by tenants or a QO and put the property on the market.
What happens if I reject the tenants/QOs’ offers and accept an offer from the market?
Under TOPA, you must give your tenants an opportunity to match an offer that you plan to accept. If they choose not to match that offer, any QO that has expressed interest also may match the offer. If no tenant or QO matches the offer, you may proceed with the 3rd party purchase.
How do I, as a landlord, make sure I am getting a fair offer?
After your tenant submits their letter of intent (LOI), tenants will make you an offer based on information that you provided to them at notice of sale. Prior to making an offer, the tenants may submit a request for additional information, like in any other home buying negotiation, to inform what offer they make. It is up to you to determine whether the tenants have made a competitive offer, and you can choose to reject it and put it on the market if you think it is not competitive.
Does this mean the value of my property decreases because I have to wait for my tenants to respond?
No. Because this process happens before you list your property on the market, it doesn’t affect the property’s number of days on the market. If the negotiation process with the tenant or a QO, doesn’t go through, you are able to list the property on the market. After listing your property, and receiving an offer, you will need to offer your tenant(s) and any interested QOs the opportunity to meet any third party offer if you intend to accept one.
What if I need to sell my property quickly?
The time frames for tenants and qualified organizations are reasonable. They mimic a regular home buying/selling process, with just a little more time for tenants to consider whether they want to buy the home and to put together an offer.
