Legal Question in Landlord & Tenant Law in California

Re: foreclosure of a leased property

I disagree with Mr. Moerbeek.

Deposits are to be refunded by the new owners, or whoever has title on the day you move out.

Re: foreclosure of a leased property

This is a very thorny issue. If the foreclosure sale goes forward on May 14, 2008 the owners will be in title until that day, and arguably you would owe rent until then. Afterward there will be a new owner. If you don't pay rent while the original landlord owners are in title they'll try to keep your deposit for the unpaid rent they would be due.

As for the deposits, the original owners should still be liable to refund those once they no longer have title to the property. If original landlord is down on his luck, and he probably is, see what you can do to get your money back from him now. Make the best deal you can. One way would be to do a walk through now and get an itemized statement from them under Civil Code, section 1950.5 g and f concerning what is being deducted and how much you'll be getting back. Otherwise you are stuck with bringing a lawsuit, in small claims, if the deposits are small enough, to recover your money. It's a very bad situation. Good luck.

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