Legal Question in Real Estate Law in California
Short Sale: Removing a difficult previous owner
I just closed escrow on a Short Sale
SFR. We were asked if the previous
owner could rent the house back
from us for Xmas Holidays. We
provided them with a rental
agreement for one month. Got a
verbal agreement but agreement
never got returned to us. We
assumed that they changed their
minds and would be out in the three
days as stipulated in escrow papers.
House closed yesterday. There is no
evidence that any effort has been
made to move out and no one is
returning our calls. We purchased
the house for $250k less than what
was owed on the house and the
seller got no cash out of escrow.
What are our options if she is not out
of the house if she has not vacated
by the 3rd day after recording of our
grant deed (The time stipulated in
the escrow papers for her to get
packed up and out)?
5 Answers from Attorneys
Re: Short Sale: Removing a difficult previous owner
I assume that the former owner did not sign any of the escrow papers, so your only agreement with them is the oral lease. You will have to evict them as though it was a normal landlord-tenant situation.
Re: Short Sale: Removing a difficult previous owner
You need to start the eviction process by having them immediately and properly served with a 3 Day Notice to Quit. On day 4 thereafter you file the unlawful detainer (eviction) lawsuit seeking possession of the property and the fair market rental value.
Re: Short Sale: Removing a difficult previous owner
You bought yourself an eviction proceeding. Hire a specialized eviction lawyer or legal help firm to get them out.
Re: Short Sale: Removing a difficult previous owner
Both Mr. Stone and Mr. Moschopoulos seem to take the viewpoint that the oral rental agreement is invalid. Mr. Shers seems to take the position that the oral rental may be valid and enforceable.
Short-term rental agreements don't need to be in writing, but there aren't enough facts here to say whether there is an enforceable one-month rental here or not. When you make an offer that calls for acceptance in writing, but the offeree attempts to accept orally, this may not be sufficient to bind the parties.
Nevertheless, the previous owner may have enough of a case to mount a defense against an unlawful detainer complaint and stretch out the eviction process, whether she wins or loses.
This leaves you with a difficult strategic decision....either go for the eviction at once, or treat the rental agreement as valid or at least as a serious obstacle to s quick and inexpensive eviction. I think you kind of have to play this one by gut feel, including thinking about how badly you want immediate possession, your assessment of the risks of letting the former owner to stay in place another few weeks, whether the offer to let her stay obviously required acceptance in writing, etc.
Re: Short Sale: Removing a difficult previous owner
Under the circumstances you describe, they need to have a lease in writing for them to claim that they are staying pursuant to a lease. You will need to file an unlawful detainer action to have them evicted.
Best of Luck!
Related Questions & Answers
-
Attorney fees what is the legal fees for loan modification? Asked 12/12/08, 11:31 pm in United States California Real Estate and Real Property