Cash for Keys in California: How It Works and What to Ask

By Brian Johnson, Eviction Defender · Updated November 2026

After a foreclosure, someone may knock on your door with an offer: move out by a certain date, leave the place clean, hand over the keys and get paid. That's cash for keys, and in California it's a common way for new owners to avoid the time and cost of a formal eviction. It can also help you, if the deal is real and the terms are fair. This guide explains how cash for keys in California works, what the law says about leaving after a foreclosure, and the questions to ask before you sign.

What Is Cash for Keys?

Cash for keys is a voluntary agreement. The new owner of a foreclosed property, often the lender, a bank-owned (REO) company, Fannie Mae, Freddie Mac or an investor who bought at auction, pays the people living there to move out by an agreed date. In exchange, the occupants usually agree to:

• Leave by a specific move-out date.
• Leave the home in "broom-swept" condition, with trash and personal items removed.
• Leave fixtures, appliances that stay with the house and landscaping in place.
• Turn over all keys, garage openers and gate remotes.

Why would a new owner pay? Because an eviction takes time and money. The California Department of Real Estate (DRE) has noted that formal eviction proceedings can delay a lender for months, and every month the property sits, the owner loses money.

No law requires a new owner to offer cash for keys, and no law sets the amount. It's a negotiation.

Your Rights After a Trustee Sale (Why the Offer Exists)

To weigh an offer, you need to know what happens if you say no.

If you were the homeowner

Once a nonjudicial trustee sale is complete, you no longer own the home, and there's no right to buy it back (see reinstatement vs. redemption). But the new owner can't simply change the locks. Under Code of Civil Procedure §1161a, after title from the sale has been "duly perfected," the new owner must serve a three-day notice to quit. If you don't leave, they must file an unlawful detainer (eviction) case in court, win it and then have the sheriff carry out the lockout.

If you're served with an unlawful detainer, you generally have 10 court days to file a response. See how to respond to an unlawful detainer. And if it reaches the end, the sheriff posts a 5-day notice to vacate before the lockout.

If you're a tenant in a foreclosed home

Tenants usually have more protection than former owners. In many cases, a tenant is entitled to at least 90 days' notice before being required to leave, and some leases can continue. Local rent and just-cause ordinances in cities like Los Angeles and Oakland may add more. Our article on the 90-day notice after foreclosure explains the details. Know these rights before agreeing to leave early, because they affect how much your cooperation is worth.

Some sales aren't final right away

For one-to-four-unit homes, some trustee sales aren't final immediately. Under SB 1079 and later laws, tenants and certain eligible bidders may get up to 15 or 45 days after the auction to make an offer. Don't sign anything until you know who the actual new owner is.

How Much Is Cash for Keys in California?

There's no set amount. It depends on the property's value and condition, what the new owner plans to do with it, how long an eviction would take and how much time you need. The California Department of Real Estate has said amounts are usually negotiable. That information is not recent, and offers today can be higher or lower. Treat the first number as a starting point.

Things you can negotiate

• The amount, especially if you're leaving the home in good shape.
• The move-out date. More time can matter more than more money.
• Part of the payment upfront to cover a moving truck or a deposit on your next place.
• Your security deposit, if you're a tenant. Ask in writing how it will be handled.
• What "clean" means, spelled out so there's no dispute later.
• A written promise that the owner won't file or will dismiss an eviction case once you leave on time.

Questions to Ask Before You Sign

The DRE's consumer guidance on cash for keys stresses verification and paperwork. Ask these questions:

1. Who is making the offer, and who do they represent? Make sure it comes from the new owner or someone authorized to act for them. Ask for the company name and contact information.
2. Are you licensed? Anyone negotiating these deals for an owner generally needs a California real estate license. Ask for the DRE license number and check it on the DRE website.
3. Can I have the full agreement in writing? Never rely on a verbal promise.
4. When and how will I be paid? The DRE's advice is clear: don't hand over the keys until you have the money. If you're paid by check, make sure it clears.
5. What happens if I need a few more days? Know the penalty, if any.
6. What can I leave behind, and what must I take? Get it in writing.
7. Is an eviction case already filed? If so, the agreement should say how it will be resolved.
8. Am I giving up any other rights? Read any release language carefully, especially about surplus funds from the sale. A cash-for-keys deal should be about moving out, not about signing away money you may be owed.

Have someone you trust review the agreement before you sign. You may also want to ask a tax professional how the payment is treated.

Red Flags

• Pressure to sign the same day or "before the offer expires."
• Someone who won't say who they work for or show a license.
• Requests for you to pay money, or to sign over a deed or surplus-funds claim.
• Telling a tenant to keep paying rent to someone who no longer owns the property.
• Threats, or attempts to remove you, change the locks or shut off utilities without a court order. In California, only the sheriff can carry out a lockout, after a court judgment.

Is Cash for Keys Right for You?

It can be a good deal: you leave on a schedule you agreed to, with money for moving, and you may avoid an eviction case on your record. It can be a bad deal if you're giving up months of protection as a tenant for very little, or signing away rights you didn't know you had. If you're still before the sale, look first at whether you can stop or postpone the trustee sale. Our stop foreclosure hub covers every stage.

Frequently Asked Questions

Is cash for keys required in California?

No. No law requires a new owner to offer cash for keys, and none sets the amount. It's a voluntary agreement. If you don't take it, the owner has to use the legal eviction process instead.

How much do people usually get for cash for keys in California?

It varies widely with the property, the owner's plans and how long an eviction would take. There is no standard amount; offers vary widely and are usually negotiable.

Can the new owner make me leave right after the trustee sale?

Not on their own. A former owner generally must be served a three-day notice to quit after the new owner's title is perfected, and then the owner has to file and win an eviction case. Only the sheriff can carry out a lockout. Tenants often get at least 90 days' notice.

Should I hand over the keys before I get paid?

No. California's Department of Real Estate advises never giving up the keys until the money is delivered, and making sure any check clears. Get the full agreement in writing first.

Does accepting cash for keys affect my surplus funds?

It shouldn't, but read the agreement carefully. If the sale brought in more than what was owed, you may have a claim to surplus funds. Don't sign any release that gives up that claim unless you understand exactly what you're giving up.

Eviction Defender is not a law firm and does not provide legal advice. This article is general information about California law as of 2026.