Legal Question in Real Estate Law in California

Leases entered into with a property management company should have been written with the property owner as the landlord, not the management company (but then again, they may not do what they are supposed to do given that they are in bankruptcy). If that is the case, then the lease is still valid and enforceable in spite of the management company's bankruptcy. The property owner is also legally responsible for the security deposit IF the lease is with the property owner. He may have been taken by the property management company, but the lease should be fully enforceable as to the property owner.

If, however, the lease is in the name of the management company as your landlord, then you may have a real problem. If that is the case, you need to contact a bankruptcy attorney immediately to discuss your rights and what you need to do to protect yourself.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence. As required by 11 U.S.C. �528, we must now disclose that, "We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. Assistance we provide with respect to Debt Relief may involve bankruptcy relief under the Bankruptcy Code."

Mr. Gibbs as usual sends you in a bizarre direction, without understanding the law of agency.

A property management company is the agent of the landlord. When the property manager signed the lease, it was as the agent of the landlord, and they signed on your landlord's behalf. Your lease is still valid, as the agents acts bind the principal. The landlord is responsible for returning your security deposit.

I agree with Mr. Roach. Only the owner can be the lessor, whether it deals through an agent or not; the agent has nothing to rent. As to the deposit, the landlord is ultimately responsible, and if the landlord had gone bankrupt, the money it held for you would be a trust fund under bankruptcy law and its safe return to you should be a priority item for payment, ahead of the general creditors.