Legal Question in Real Estate Law in California

Re: Tenant claims right after foreclosure!

Perhaps Mr. Whipple will answer this question as he is the most knowledgeable of the attorney on this site for property questions.

You need to look at the lease agreement. If it gives the tenant only a month to month lease, then give them 30 days notice if you really want them out. If you merely want to raise the rent but do not object to that tenant, try negotiating an increase, no matter what the lease says, as both parties can always change the terms of an agreement if they will agree to new terms.

If the lease is longer than month to month and you want the tenant out or to raise rents, you have a cause of action against the seller for misleading you and you should contact the seller to see about getting compensation. Your real estate agent should have demanded to see a copy of the lease before escrow closed so also has some degree of negligence.

I am currently starting on a similar case, but involving a residential tenancy, in which the lender's attorney does cite one case, that I do not think applies, that the foreclosure is superior in a commercial case to the lease, but the general rule is that you step into the shoes of the former owner so are bound by what ever he had agreed to.

You must carefully review the lease and see if there is any other way to get around it, as the cost of fighting the case will likely be much higher than the amount of money you would gain.

good luck

Re: Tenant claims right after foreclosure!

Follow Mr. Shers' advice!