ORANGE COUNTY, Fla. — Tenants forced to evacuate an Orange County apartment complex due to structural issues are being asked to sign an agreement that bars them from suing their landlord in exchange for a cash payout.
The Rialto was evacuated earlier this month after cracks appeared throughout the building leading Orange County to deem the structure a “Danger, unsafe for human occupancy.”
The proposed agreement from the landlord, Northland, a private real estate firm based out of Massachusetts, offers residents a $2,000 payment and moving assistance if they agree to waive all rights to future damage claims.
This comes as more than 350 residents remain displaced and a class-action lawsuit has already been filed against the property owners.
The “vacate and release” agreement offered by Northland waives early lease termination charges and provides a refund of prorated rent for March. It also covers moving costs to locations within 25 miles and includes a single $2,000 payment.
In exchange, tenants must agree to waive all rights to future suits or damage claims.
Leonidas Papakalos is one of the more than 350 residents forced to leave the complex. He said the property owner still has not provided a timeline to repair the structural damage and that he remains unable to access several of his belongings still inside his apartment.
“We’re trying to moving on. But you’re still responsible. You uprooted our lives,” Papakalos said.
He told Channel 9 that he does not intend to sign the document. “They’re just trying to cover their own butts,” Papakalos said.
Real estate attorney Barry Miller said he is advising residents to “proceed with caution” because the agreement would essentially cancel their ability to join a class-action lawsuit that was filed against the owner last week.
It would also prevent tenants from suing if any of their belongings are damaged during a move, covered under the agreement.
Miller pointed to Florida state law, which allows tenants to send notice of intent to terminate a lease if a property is deemed uninhabitable. This process triggers a seven-day window after which the lease can be ended without early termination fees regardless of any additional agreement.
“There’s a deluge of claims that could be made against the landlord and this is waiving those rights,” Miller said. “I would have a hard time recommending to a client to sign a document like this, a real hard time.”
Northland, the property owner, issued a statement noting that the agreement is one of several options available to those displaced, adding that residents can still terminate their lease without signing the agreement. See their full statement below:
“We recognize how difficult this situation has been for our residents. Given the continued uncertainty, we are offering a range of options and assistance to help residents make informed decisions about their next steps. These include the option to terminate their lease, packing and moving of their belongings to within a 25-mile radius of The Rialto, and an additional $2,000. For residents who choose to live at another Northland community, we are offering a two-month rent concession.
For residents who choose to accept this assistance, a release of claims will be required as part of that process. Residents who prefer not to pursue this assistance may still proceed with a lease termination, and we will coordinate the return of their belongings. Residents can also choose not to terminate their lease at this time. Residents will not be charged rent for any time they have not had access to their units.
Our engineering team is continuing its careful assessment of the building. This is complex work, and while we do not yet have a definitive timeline for when the investigation will be complete or when additional details can be shared, our focus remains on ensuring a thorough and responsible process while we simultaneously work to assist our residents.”
Click here to download our free news, weather and smart TV apps. And click here to stream Channel 9 Eyewitness News live.