The Richmond Rent Board is exploring new ways to prevent sellers of rental properties from neglecting to inform buyers of “hidden” debts and legal restrictions tied to their properties.
About 400 rental properties change ownership in Richmond annually, according to Richmond Rent Control Executive Director Nicolas Traylor. Many carry undisclosed burdens, such as unpaid rent program fees, eviction histories, or tenant restitution debts. Traylor highlighted a specific problem regarding court-ordered refunds, noting there are situations where a landlord owes a tenant restitution but “instead of paying the tenant the restitution, the landlord sells the property and the new owner inherits that debt.”
This issue creates a significant administrative burden for the Rent Board, which must mediate disputes with frustrated buyers while the original debt remains unpaid. Because the board is funded primarily by landlord fees, these uncollected debts directly impact the program’s ability to operate efficiently.
To address these concerns, Rent Control staff proposed an ordinance that would mandate a standardized disclosure form during the sale of any rental property. This plan includes a “private right of action,” allowing buyers to sue non-compliant sellers for $1,000 per undisclosed item plus attorney’s fees.
However, the real estate community has pushed back against a purely punitive approach. John Fondazio, president of the Contra Costa Association of Realtors, and local broker Renee Bartels argued for a collaborative solution. They suggested integrating these disclosures into the standard escrow process, similar to how HOA fees are handled, by working directly with title companies.
In response, the board voted unanimously to explore both paths simultaneously. Over the next 30 days, staff will investigate a partnership with title companies while continuing to draft the ordinance and engage in community outreach. A refined proposal, which may favor one approach over the other, is expected to return to the board for review next month.
The Richmond Rent Board was established in 2017 to oversee rent control and eviction protections. While supporters maintain it is an essential tool for ensuring housing affordability, critics argue the program creates administrative bloat. For more information, visit the Richmond Rent Program website.