What are the rightsof tenantswho are renting a home afterit is lost by the owner?

UPDATED: Jun 10, 2011

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What are the rightsof tenantswho are renting a home afterit is lost by the owner?

We just received a notice that we need to live in 3 days. I believe we have the right to stay longer at least until we find a place to stay. Since we are just the people who rent not the owner who lost the house.

Asked on June 10, 2011 under Real Estate Law, California


M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

You did not provide much by way of details but you shoul be aware that federal law gives some rights and protection to a tenant in the event that their rental unit goes into foreclosure. The “Protecting Tenants at Foreclosure Act” requires that when a home is foreclosed on, tenants who have a written lease can continue to occupy the home until the end of their lease or 90 days, whichever is longer. The only exception would be if the new owner intends to move in and occupy the home as their primary residence. In that case, a 90 day notice to move applies. Tenants with a month-to-month lease, or no lease at all, have to be given at least 90 days notice to move. Additionally, in cases where state law provides more protection than the federal law, state law applies.

You should be aware however that as long as the landlord remains the owner of record (i.e. still on the title to the property), the tenant must continue paying rent to them. Once titlke passes the landlord will no longer be the legal owner and the tenant will then be informed where to send their rental payments by the new owner. However the original landlord is still responsible for the return of the security deposit.

Finally, sometimes an incentive can be negotiated between a new owner and a tenant so that the tenant agrees to move out prior to when they are legally required to. This incentive is known as “Cash for Keys”. Basically, the owner will pay a tenant to leave the property early in exchange for a cash payment. The amount and timing of the payment can be worked out on a case-by-case basis.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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