Full question:
I am a landlord and I am foreclosing on my property that has a tenant who has a 1 year lease contract. Can I be sued for breach of contract if I terminate their lease after giving them 30 days notice.
- Category: Landlord Tenant
- Subcategory: Lease Termination
- Date:
- State: California
Answer:
The answer depends on the specifics of the foreclosure and the type of property involved. In California, if the foreclosure is on a residential home, there are specific laws that apply. Before a home is sold in foreclosure, a 'Notice of Sale' must be posted at the property. This notice must inform the tenant that the foreclosure process has begun and may affect their right to remain in the property.
After the notice, the new property owner can either offer a new lease or provide a 60-day eviction notice. However, other laws might require a longer notice period or prohibit eviction under certain circumstances. It's advisable to consult a lawyer or a housing counseling agency to understand your rights.
Until the property is sold, the tenant is required to continue paying rent to the landlord, and once sold, rent is owed to the new owner. If the new owner wishes to evict the tenant, they must provide a written 60-day notice. If the tenant does not vacate, the new owner can initiate the eviction process.
Landlords cannot forcibly remove tenants by cutting off utilities or changing locks. They must return the security deposit, minus lawful deductions, or transfer it to the new owner. If the tenant signed the lease after the mortgage was taken out, the new owner may not have to honor the lease. If the lease was signed before the mortgage, it may still be valid.
In cities with rent control, local eviction regulations may apply, and the 60-day notice may not be sufficient. If there are errors in the eviction notice, it can be contested. Notices must be in writing and properly served to the tenant. If the tenant does not move out after 60 days, the new owner must file for unlawful detainer (eviction) and obtain a court order to proceed.
For landlords selling a rental property, the lease typically remains in effect unless it allows early termination upon sale. Generally, the new owner assumes the lease obligations unless stated otherwise in the sale contract.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.