Chapter 21.04


21.04.010    Public purpose to be served.

21.04.020    Definitions.

21.04.030    Tenant notification of offer to sell residential rental property.


Residential rental opportunities in the city of Santa Cruz are under increasing pressure. Tenancies are frequently terminated upon sale of residential rental property. To alleviate the dislocation caused by transfers of residential rental property and to encourage the development of affordable housing, it is desirable to give tenants notice of impending sales and to provide information about how they might purchase the property.

(Ord. 88-44 § 1, 1988).

21.04.020 DEFINITIONS.

As used in this chapter, the following terms shall be defined as follows:

(a)    “Listing agreement” means an agreement as defined in California Civil Code Section 1086(e).

(b)    “Residential rental property” means any real property with a primary use as a residential dwelling unit or units for rent, or lease.

(c)    “Offer to sell” means an offer to sell or solicitation for offers initiated by the owner or the owner’s representative. An offer to sell does not include any of the following:

(1)    Any sale or other transfer by a rental property owner who is a natural person to any relation specified in Section 6401 or 6402 of the Probate Court;

(2)    Any transfer by gift, devise, or operation of law;

(3)    Any transfer by a corporation to an affiliate. As used in this paragraph, “affiliate” means any shareholder of the transferring corporation, any corporation or entity owned or controlled, directly or indirectly, by the transferring corporation, or any other corporation or entity controlled, directly or indirectly, by any other shareholder of the transferring corporation;

(4)    Any transfer by a partnership to any of its partners;

(5)    Any conveyance resulting from the judicial or nonjudicial foreclosure of a mortgage or deed of trust encumbering a property or any deed given in lieu of such a foreclosure;

(6)    Any sale or transfer between or among joint tenants or tenants in common owning a rental property, or those holding such property or community property;

(7)    The acquisition of a residential rental property by a governmental entity;

(8)    The transfer of property by court order.

(Ord. 88-44 § 1, 1988).


(a)    Not less than ten days but no more than thirty days prior to entering into any written listing agreement for the sale of residential rental property or making any offer to sell the property, the owner shall provide the tenants written notice that the property is for sale. Notification shall be provided by first class mail or by personal delivery to all tenants of the residential rental property.

(b)    Nothing in these provisions affects the validity of title to real property transferred in violation of this chapter.

(c)    Tenants damaged by violations of this chapter may bring a civil action against the offending owner and may recover damages not to exceed four hundred dollars.

(d)    Nothing in these provisions affects the ability of a licensed real estate broker, as defined in Article I (commencing with Section 10130) of Chapter 3 of Part I of Division 4 of the Business and Professions Code, to collect a commission pursuant to an agreement between the broker and the property owner.

(Ord. 93-45 § 1, 1993: Ord. 88-44 § 1, 1988).