New Law: Landlords in Foreclosure Must Disclose Default to Prospective Tenants

Law Offices of Peter N. Brewer

by Law Offices of Peter N. Brewer on October 15, 2012

in Landlord/Tenant Disputes, Legal Update

Normally a tenant would not learn that his or her unit was in foreclosure until very late in the foreclosure process, when the notice of trustee’s sale is posted on the front door.  However, on September 25, 2012, Governor Jerry Brown signed into law SB 1191 (sponsored by Senator Simitian as part of his “There Outta Be a Law” contest) which requires landlords to disclose to prospective tenants that the property is in foreclosure.

The law is to protect new tenants by informing them before a lease is signed that their occupancy could be interrupted by a foreclosure.  For example, imagine the tenant who gives a security deposit and then is informed a few months later that they are required to move, pursuant to a 90 day notice served on them by the successful bidder at the foreclosure sale, who has decided to move in.

The Notice of Default is the notice that triggers the Landlord’s obligation to disclose.  The law goes into effect January 1, 2013 as California Civil Code Section 2924.85.

The law will be in effect for 5 years and applies to single family homes or multi-family dwellings of 1-4 units.

What is interesting about this law is that it does not require landlords who own larger projects to disclose the Notice of Default, nor does it require landlords to disclose to the existing tenants.

If you have  a matter related to this article, or anything else relating to real estate law, please contact the Law Offices of Peter N. Brewer at (650) 327-2900, or visit our website at

Related Posts Plugin for WordPress, Blogger...

{ 2 comments… read them below or add one }

avatar October 18, 2012 at 4:00 pm

I always enjoy reading your civil law articles. You may become one of authors of this rubric There is no fee, but you can promote your legal services in these articles. Or promote someone else’s civil litigation services.

avatar Property Lawyers November 12, 2012 at 8:43 am

If you are searching pertaining to Parramatta Lawyers which take care of spouse and children instances, you will be happy to understand there presently exists numerous solicitors law firm offering family regulation services within Parramatta. Most of these lawyers are usually familiar with the industry of household law and definately will help you achieve this legal services you require.
A family lawyer is a lawyer that deals with problems connected to the family regulation and all facets of the family members relations. A couple of the problems that are dealt with under the household law feature kid custody, youngster visitation, youngster help, kid rights, spousal assistance, adoption, premarital as well as marital contracts, division of marital property, choosing problems pertaining to the family members will, issues regarding inheritance, as well as anything that concerns legal issues concerning the family members.

Leave a Comment

Previous post:

Next post: