Legal Question in Real Estate Law in California
Owners in Default
We have been renting a house for the last 7 months, It has come to light though that the owners have been in defalt and are going through forcloser.But they haven't set a date yet. They lied about it when we asked them about the defalt after a realitor came to the door. We found out from the City that it has been in defalt for a long time now. Yet now that this has come out they are still demanding rent from us. Do we still have a legal oblagation to pay? Any information would be great Thanks..........ASAP Please
1 Answer from Attorneys
Re: Owners in Default
Yes, you have to pay rent. Although in default, until the foreclosure is completed, they
are still the owners, and you are still in possession. The default has not affected your tenancy.
If you specifically asked about the default before you moved in, and they lied, and you relied
upon the misrepresentation in moving in, then perhaps you have a fraud suit, if you are forced
to move earlier than reasonably anticipated. If your lease is for a specific term (rather than
month to month) and you have to leave early due to the foreclosure, then you may have a breach of
contract action.
Jed Somit
Jed Somit, Attorney at Law
1440 Broadway - Suite 910
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