Legal Question in Landlord & Tenant Law in California
Unlawful detainer while in escrow?
Is it worth it for an owner, whose property is currently in escrow and will be closing soon, to go through the cost of hiring an atty for unlawful detainer on a tenant who refuses to pay rent? Tenants were served with 30-day notice and 3-day notice by atty but they still remain on premises and refuse to pay. Will the problem no longer be the current owner's once the escrow is closed and ownership is transferred to new landlord?
2 Answers from Attorneys
Re: Unlawful detainer while in escrow?
I am assuming that the buyers are aware that the tenant is delinquent on the rent. If not, you should make them aware. If they choose, they can hire the atty. to evict the non-paying tenants. Once ownership is transfered, the problem is no longer yours, unless you failed to inform the buyers. Good Luck.
Re: Unlawful detainer while in escrow?
You have a duty to perform your obligations under your contract. This would include turning over possession to your buyer. You cannot assume your new buyer will know the tenants are refusing to move out. In the event the buyers agree to remove the tenants at their cost, you should get this in writing. Furthermore, there is no way for the new buyers to evict the tenants unless you assign the lease to them, i.e. inform the buyers and the tenants (preferably in writing) that the buyers are the new landlords. You cannot just drop this surprise on the buyers' lap and expect to walk away. It will not end there. And yes, it would be worth it to evict the tenants. The cost for this service is usually less than $1,000 including all corut costs and fees. Also, if your attorney served a 3 day notice he has violated the fair debt collection practices act, in which case you should have a proper 3 day notice served.