Legal Question in Real Estate Law in California

Your sister is at least partially correct. San Francisco's rent-control ordinances provide that, in certain circumstances, when an owner takes a building out of the rental market -- for example, for substantial rehabilitation -- each tenant shall be paid a relocation allowance of over $4,500, up to a maximum of over $13,500 per family. I am not sure whether this would apply to a single-family home, or where the parties were at the end of a lease for a definite, fixed term. The rent control board has a phone number you can call to inquire: (415) 252-4602.

Your sister is entirely correct. Once you put a rental unit on the market it becomes subject to all the byzantine rules and regulations of the San Francisco Rent Board and their ordinances. Not all rules apply ot all units, but all units are subject to the "Ellis Act" rules for taking a unit off the rental market to sell it. Sections 37.9 and 37.9A cover removing a rental unit from the market to sell it. Those sections place sever restrictions on putting the unit back on the rental market, impose reporting requirements on the sellers, buyers and any subsequent buyers for five years, and require a payment to any tenants displaced by the sale, regardless of the lease ending. Furthermore, a buyer cannot remove the tenant unless their lease is up, or there is just cause for eviction. The tenant must be paid half their displacement payment when served with the notice (120 days minimum, one year for 62 and over or disabled), and the other half when they move out. Effective 3/1/11 ther payment will be $5105.20 per tenant (children included) to a maximum of 3 tenants. If there are more than three tenants they divide the three-tenant rate equally. There is a surcharge of $3403.45 per tenant who is over 62 or disabled.