Investment Property Ellis Act Disclosure
I am doing 2 refinances (duplex and triplex) both are not rent controlled and one acquisition, all in Santa Clara County. First Republic bank is asking me to sign the following statement;
"
Do you have any present intent to re-purpose the use of the Property by withdrawing any units from the residential
housing market pursuant to California Government Code Section 7060-7060.7, commonly known as the Ellis Act,
or is the Property currently under any Ellis Act restrictions?"
My questions are;
1) how will these properties be encumbered if I sign this disclosure. Am I waiving any rights under the Ellis Act by signing this? I for the near future have no intention to take these off the rental stock anytime soon. I certainly wish to retire sometime and don't want to be saddled with this.
2) Can I invoke the Ellis Act anytime in the future? Since it says this disclosure is "present intent"? Also, if I refinance with another lender in the future does the same pledge hold?
3) If I sell these properties, will the new owner be subject to the restrictions that arise from waiving this right,