Legal Question in Real Estate Law in California
I have been renting a house on a verbal contract for almost 2 years. I understand that verbal leases must be backed by written leases after one year. My landlord failed to do so. Now the house has gone into foreclosure. I was informed that I no longer pay the rent to the landlord, rather keep it in a separate account in the case that the bank who owns the lien should ask for the rent. So being without a written lease for 1 year 9 months, what are my options as far as staying in the house for a little while? Do I have to pay the landlord? And she's not very "by the book" so what can protect me from being thrown out if she so decides?
2 Answers from Attorneys
You have to pay someone. I believe that unless and until the landlord's lender gives you a written instruction to pay them the rent, you should be paying the landlord. You also should have a formal written lease agreement so that you can (probably) continue in possession after a foreclosure sale.
You are mixed up over some legal issues. First of all, you are on a month to month tenancy. That is because you do not have a written lease for a fixed term. The fact that a month to month tenancy may continue beyond a year on the desire of the tenant does not bring the lease within the statute of frauds. The staute of frauds only applies to a tenancy that by its terms will necessarily exceed one year in duration. This is a critical distinction.
When the trustee's sale is completed, the landlord no longer the owner of the property. The foreclosure wipes out all interest that the trustor has in the property. Pending foreclosure, you must pay the landlord, but once the trustee's sale is completed, the person who purchases at the foreclosure is the one you need to speak to regarding rent payments.
I also suggest that you read this page:
http://www.tenantstogether.org/article.php?id=723
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