Legal Question in Real Estate Law in California

Re: foreclosure law

If the prior owners have left personal property in the house, then it is debatable whether they have vacated. Leaving property is a fact tending to show continued possession. Courts will consider where they spend the night, whether the keys have been surrendered, what they have said about their intentions, whether the utilities have been shut off, where their mail is being delivered, and maybe other factors in reaching a legal conclusion about whether former occupants have surrendered possession or are still in possession.

I have just read (yesterday) a lengthy case about an owner-through-foreclosure's rights and duties with respect to property left behind by the former owners. One of the first issues is whether the new owner put the former owners into possession by some kind of agreement, such as by selling to them. If so, the former owners are legally tenants at sufferance, and entitled to the rights of tenants under the Civil Code (sections 1965 and 1980 et seq.) with respect to storage, notice, return of property, etc., all quuite protective of the (former) tenant's rights.

If on the other hand, as seems the case here, the former owners had no prior relationship with you before you acquired the property, your obligation toward the property and its owners is much less. First, you should determine that you are the person in possession, not merely the person entitled to be in possession, of the property. This means satisfying the owner-by-foreclosure notice requirements (if necessary) and assuring that the left-behind personal property is the only indicium of continued possession.

Once you are truly in possession, you are an involuntary bailee (or depositary) of the property. At that point, all you have to do is give reasonable notice (Civil Code sections 1815, 1816, 1847(b)) to the owner.

If the owner doesn't pick up the property (and you need to facilitate that by doing reasonable things like making an appointment and letting him in) soon, you can dispose of it in a commercially-reasonable manner. That would include taking it to the dump if there is no realistic market for it, or selling it and deducting your costs from the proceeds. The property isn't yours, and never will be, so you aren't entitled to keep it or the net proceeds of sale.

So, handle the possession problem to conclusion, then deal reasonably and fairly with the left-behind belongings.