LA Apartment Building Seller Questions, Answered

Direct answers to the questions LA multifamily owners actually ask — taxes, tenants, timing, paperwork, and process. Written by Michael Sterman, $1.37 billion across 246 closed LA multifamily transactions.

117 questions answered

Taxes & 1031 Exchanges

Capital gains, depreciation recapture, Prop 13, Measure ULA, and exchange deadlines.

Tenants & Rent Control

RSO, AB 1482, Ellis Act, relocation fees, and what a sale means for the people in the building.

Can I evict tenants before selling my LA apartment building?

Can I raise rents before selling my LA apartment building?

Can I sell an apartment building with Section 8 tenants in Los Angeles?

Can I sell my apartment building while an eviction is pending?

Can I sell my apartment building with tenants in place?

Can I sell my Hollywood apartment building with tenants in place?

Can I sell my LA apartment building with a pending tenant lawsuit?

Can I sell my West Hollywood building with tenants in place?

Do I have to be current on the LA rent registry to sell my apartment building?

Do I have to tell my tenants I'm selling my apartment building?

Do LA tenants have a right of first refusal when their building is sold?

Do tenants have to let buyers tour my apartment building?

How do buyers underwrite a rent-controlled building in LA?

How do I sell a rent-controlled apartment building in Los Angeles?

How does RSO registration affect selling my LA apartment building?

How is rent prorated at closing on an LA apartment building sale?

Is my Glendale building covered by the Rental Rights Program?

Is my Hollywood apartment building rent-controlled?

Is my Koreatown apartment building rent-controlled?

Is my Santa Monica building rent-controlled?

Is my West Hollywood building rent-stabilized?

Selling a Koreatown building that has had the same tenants for decades

What are relocation fees when I sell an LA apartment building?

What buildings are covered by LA rent control?

What happens to my tenants when I sell my LA apartment building?

What happens to tenant security deposits when I sell my LA apartment building?

What is AB 1482 and does it apply to my building?

What is LA's tenant anti-harassment ordinance and does it affect my sale?

What is the 2026 LA RSO rewrite?

What is the Ellis Act and can I use it before selling my LA apartment building?

What's the difference between RSO and Costa-Hawkins?

The Sale Process & Paperwork

Escrow, disclosures, estoppels, listing agreements, contingencies, and what happens at closing.

Can a buyer assume my loan on an LA apartment building?

Can I gift part of my apartment building to my kids before selling?

Can I sell an apartment building insured by the California FAIR Plan?

Can I sell an apartment building with open code violations or in REAP?

Can I sell my LA apartment building if I'm in foreclosure?

Do I have to pay a loan prepayment penalty when I sell my LA apartment building?

Do I have to pay off a PACE assessment or solar lease when I sell?

Do I need a Phase I environmental report to sell my apartment building?

Do I need a real estate attorney to sell my apartment building?

Do I need an appraisal to sell my apartment building in Los Angeles?

Does adding an ADU increase my apartment building's value?

Does being in a fire hazard zone affect my apartment building sale?

Does my building have density bonus or TOC potential?

How do I sell an apartment building held in a trust?

How do I sell an LA apartment building that's owned by an LLC?

How long does escrow take on an LA apartment building sale?

Should I sell my apartment building at auction?

Should I sell my apartment building or keep it?

Should I sell my apartment building to a developer for land value?

What contingencies should I expect in an LA apartment building purchase contract?

What disclosures are required when selling an LA apartment building?

What does Glendale's 7% rent increase trigger actually cost?

What financial records do I have to give a buyer?

What happens if a co-owner dies before we sell the building?

What happens if my apartment building doesn't appraise?

What happens if my building has asbestos or lead paint when I sell?

What happens if my LA apartment building has unpermitted units?

What happens if the buyer backs out of escrow?

What happens to my mortgage when I sell my apartment building?

What happens to my property management contract when I sell?

What happens to my resident manager when I sell the building?

What if one co-owner wants to sell and the others don't?

What is a PML report and do I need earthquake insurance to sell?

What is an estoppel certificate in a multifamily sale?

What is an installment sale and should I use one?

What is defeasance and what does it cost to prepay my loan?

What is in a listing agreement when I sell my LA apartment building, and what should I watch for?

What is step-up in basis when I inherit an apartment building?

What is the California withholding when I sell my apartment building?

What is the court confirmation and overbid process when selling an inherited LA apartment building?

What paperwork do I need to sell my apartment building in Los Angeles?

Who pays closing costs on an LA multifamily sale?

Who pays for repairs found in the buyer's inspection?

Pricing, Timing & Offers

What drives the number, when to sell, and how the offer process actually plays out.

Building Compliance & Regulations

Soft-story retrofit, balcony inspections, and the LA ordinances that follow a building into escrow.

Brokers & Selling Strategy

Choosing representation, commissions, and how buildings actually get sold in LA.

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