Legal Question in Real Estate Law in California
We just moved into a rental home in California, June 2011, and have now discovered that the landlord is in default of the property taxes for Dec 2010 and April 2011. Because of our financial situation, we paid 3 months rent upfront and security deposit. The rental agreement transaction was completed with the guidance of two respectable local realtors, one respresenting us and one representing the landlord, so we thought the transaction would be a safe one. We do not know if the landlord is also in default on the mortgage. What do we do now?
1 Answer from Attorneys
The tax delinquency is somewhat troubling, but not something that would come to the surface in the average residential leasing transaction, even one assisted by licensed real estate professionals on both sides. Also, I believe he is still a year or two away from a tax sale. If he is equally behind on his mortgage, a foreclosure would normally occur much sooner than a tax sale. One step you can take is to go to the County Recorder's office and ask a clerk to assist you in looking up recent recordings for your rental address. Typically, a foreclosure will not occur until 120+ days from the recording of a notice of default, often much later. Also, under recent law (the Protecting Tenants in Foreclosure Act, I believe) in many instances tenants cannot be evicted by a buyer in foreclosure until the lease expires.