Legal Question in Landlord & Tenant Law in California

Re: landlord in bankruptcy

Several issues here. First, it is not fraud for the landlord to collect rent while in foreclosure. In very limited circumstances, the LENDER can assert a claim of rent-skimming against the property owner, but it is not a remedy available to you. Second, by virtue of the landlord filing chapter 7 bankruptcy, an "estate" was created in which the bankruptcy court assumes jurisdiction of the Debtor's (landlord's) assets, including the house you are renting. The bankruptcy court, unless there is equity in the house you are renting, will probably allow the lender to continue its foreclosure, unless the landlord has a plan to save it. In any case, until you hear otherwise from the bankruptcy court, you are still obligated to pay rent to the landlord. As for the claims for reimbursement for landscaping, window treatments, etc... those are clearly not "habitability" issues, and you spent that money at your own peril. Even if you had a written agreement to be reimbursed for those expenses, the obligation is very likely going to be discharged in bankruptcy. I would suggest that unless he has a plan to keep the house, you need to start looking towards moving, and pay the rent to avoid being evicted. The bankruptcy issues here are much more complex than I can address here, but the upshot is that until someone from the BK court tells you otherwise, you must continue paying rent, or move.

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