A pay-or-quit notice (also called "3-day notice") is the initial notice to a tenant in default for non-payment of rent, giving them three business days to pay or vacate before unlawful detainer is filed.
California civil procedure requires this specific notice before a landlord can file UD for non-payment. The notice must state the exact amount owed, the recipient, and the deadline. Strict compliance required — defective notices are dismissed and must be reissued.
For LA multifamily with tenants in arrears, the pay-or-quit notice is the starting point of the UD process. LAHD-covered buildings require additional filing and tenant-protection compliance. Sellers with properties in active non-payment situations should document the process carefully — buyer due diligence will review.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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