Legal Question in Real Estate Law in California
Tenant holds lease on property in foreclosure
I have a 1 yr lease on a house. The owner has informed me property is in foreclosure. Owner has placed property on market. Although she is breaking my lease, she says she will only pay my moving expenses "if she gets enough for the house". What are my rights if she sells the house, gives me 30-day notice, and refuses to pay my moving expenses? Can I refuse to move until she does?
1 Answer from Attorneys
Re: Tenant holds lease on property in foreclosure
The current owner cannot evict you in violation of the lease, unless you fail to
pay rent or otherwise breach the lease yourself. If the house is sold, then the new
owner can evict you (I assume that the deed of trust defaulted upon precedes your
1 year tenancy). If that happens, or the new owner wants increased rent, you can sue the current owner for breach of the lease. Your damages
are likely to be the difference between the rent paid and what comparable housing costs, and
maybe a portion of your moving expenses (but probably not entirely, since in theory you would
have had to move at the end of the year). You do not provide facts showing other
damages.
Jed Somit
Jed Somit, Attorney at Law
1440 Broadway - Suite 910
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