Legal Question in Real Estate Law in California

renter's rights

if you sign a 1yr lease with a property mgmnt company and 3 months into your contract they let the home owner out of there contract does the renters contract with the property mgmnt company still valid or can the home owner void the contract and sell the house from underneath the rents. the owner is also doing a hort sale on the house. what rights do we as the renter have on our 1 yr. contract


Asked on 1/20/07, 5:54 pm

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: renter's rights

There are only two thngs that might make the balance of your lease term doubtful:

1. If the property management company lacked authority from the owner to make the lease. If that were the case, the lease would be in doubt but you would have a solid case for damages against the property management company for exceeding its authority.

2. If the lease contains a specific clause giving the lessor a right to terminate the lease on sale, that clause can probably be enforced against you. Such clauses are unusual, but sometimes owners who expect to sell will sneak them in, so the new owner can immediately occupy the place himself, or start a major remodel, convert to condominiums, or tear it down to build a high rise.

Your lease is probably unaffected by any of this background noise; you'll just have a different landlord.

The seller has a duty to return your deposit or give you written advice that the deposit is now being held by the new owner. If the deposit is returned to you, the new owner can ask you for a new deposit to him, in the same amount as specified in the unexpired lease.

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Answered on 1/21/07, 10:15 pm
Robert F. Cohen Law Office of Robert F. Cohen

Re: renter's rights

I assume that the property management company and the owner had a contract when you rented. If that's the case and the property management company no longer is in the picture, you should pay rent to the owner. Once the short sale is completed, you pay rent to the new owner (who should provide you with written notice). The new owner takes the property subject to the lease, so your lease remains valid until its natural expiration.

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Answered on 1/20/07, 6:33 pm


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