Legal Question in Real Estate Law in California

Re: 60 day notice with intent to sell?

So long as you had a month-to-month rental agreement with the tenants, you may terminate their tenancy with a 60 day notice (assuming they have lived there a year or more - if less, then only 30 days is required). Attorney Whipple is correct, you can sell the house subject to the tenants being in place, but it sounds like they have destroyed the place and selling with them in-place might not be feasible. You do not owe them anything for terminating their tenancy (again, assuming that they are month-to-month). Review with the Section 8 Administrator what your obligations are - sometimes those leases contain other terms related to termination of tenancy. They are not all uniform, so you need to review what you actually signed and agreed to.

As for the retaliatory eviction lawsuit, do your best to defend it - remember that under CA law, you do not have to give them any reason for terminating their tenancy if they are month-to-month. The existence of that lawsuit (if before the 60 day notice) may go to the question of retaliatory eviction, however, again your defense is that you do not have to give a reason for terminating their tenancy.

Finally, as for SDHC liability, you are not going to be happy. Years ago, the Section 8 programs all changed their position on program liability. Unless it has changed again recently, I believe their contracts provide that they are not liabile for any damages beyond the amount of the security deposit - again, though, read your contract because if it is an older one, it might pre-date the change (couldn't hazard a guess at when the change was made). Your contract will delineate their responsibility for damages. If you have a copy of that inspection report, it will assist you in defending the tenant's lawsuit. Section 8 used to be a pretty good deal, but this change has forced a lot of my clients out of the business of assisted rentals.

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Re: 60 day notice with intent to sell?

I can't give you a complete answer on the specific situation you face, but I can mention a few general matters. First, much income property is sold subject to the existing tenancies. Most buyers would rather have fully-occupied rather than empty buildings. Of course, this presumes desirable tenants.

Also, you didn't say whether this property is leased or on a month-to-month rental agreement. If it is leased, your intent to sell is not a reason to disturb the lease; you may sell, but subject to the tenancy.

Finally, to the extent Section 8 or San Diego Housing Commission issues may exist, I suggest you take them up with HUD or the Commission directly.

Re: 60 day notice with intent to sell?

If you lose in small claims court, be sure to appeal. You may be represented by counsel at the appeal. Contact me directly.