Legal Question in Real Estate Law in California
we received a notice that the home we are renting is going to auction this month. the landlord is still trying to collect rent. they explained that they are trying to purchase the property by short sale with another family member. are we obligated to still pay the rent? we do not have a signed lease.
3 Answers from Attorneys
I would not pay any more rent. When the bank takes over they cannot evict you for at least 60 days, and possibly you can negotiate for "key money."
Additionally, a sale to a family member would be a fraud against the lender, and could be reversed by the bank. Don't pay rent to them.
Technically, the landlord is in breach of an "implied covenant" (a rental term that the law assumes is part of your deal) of "quiet enjoyment" (which has nothing to do with noise; it means that your right of possession won't be disturbed by anyone, such as former tenants or foreclosing banks). This is a sufficiently serious breach to give you the right to stop honoring the rental agreement (or lease, if you had one) and stop paying rent. However, you would also have to move out. OK, that's what's technically correct in this kind of situation.
On the other hand, there is real life. I would go with Mr. Stone's proposed solution. Don't spend the rent money, though, until you find out where you're going to live next. You may need the cash for the move and the deposit on the new place. You may or may not get a refund of your present deposit (if any).