Legal Question in Real Estate Law in California
Tenant involved foreclosure
House has been foreclosed on after auction date. Tenants lease is not up for another month and there is also a management agreement involved where tenants are to deal with them. What rights do tenants have to stay and finish out their lease, which is just 30 days away. Should they turn over keys to property management company? Are all contracts and leases null and void?
2 Answers from Attorneys
Re: Tenant involved foreclosure
Nothing changes as far as tenants are concerned. Unless instructed in writing to do otherwise, continue to make rent payments as you had before.
Re: Tenant involved foreclosure
Sale of a building, whether voluntary or by foreclosure, does not affect the rights of a tenant lawfully in possession under a lease that runs beyond the sale date. The only exception would be if the lease contains a provision that causes it to terminate or be terminable at the owner's election upon or after a sale. Such clauses are very unusual but they do crop up from time to time where the previous owner anticipated selling to a new owner who might want the place vacant, either for remodeling or for his own personal use, or both.
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