SOME HIGHLIGHTS OF THE FOLLOWING NEW LAWS FOR 2009
(This page will be updated from time to time with new information or analysis.)
FEDERAL LAW REGARDING TENANCIES AFTER FORECLOSURE
On May 20, 2009, the President signed Public Law 111-22 into law to take effect immediately. The law has a significant impact on tenants residing in a residential property that has been foreclosed upon.
The bill is intended to assist residential tenants by doing three important things;
!. Transferring existing leases (including section 8 tenancies) to the new owners after a foreclosure sale.
2. Requiring 90 day notices to vacate (State law was 60 days) in month to month tenancies after a foreclosure sale.
3. Declaring that a foreclosure is not "good cause" alone to evict a section 8 tenant.
There are conditions to be included under this new law
The lease or rental agreement must have been in existence prior to the
"notice of the foreclosure" which is now deemed to be the sale itself.
There must be a "bona fide tenant" or "bona fide tenancy"
If these conditions are not met, then State law applies.
Additional consequences and effects
Paying Rent Coming under this law means that the tenant may now have to pay the lease rent after a foreclosure. Existing State Law allowed a tenant 60 days after a foreclosure of a dwelling to vacate without paying rent. This was regarded as an unofficial relocation benefit. This new Federal Law appears to wipe out the free rent California tenants were enjoying. The (pre- foreclosure notice) lease may be recognized and assumed by the new owner who may now want the rent immediately after the foreclosure sale.
Stranger as New Landlord After the foreclosure sale, the tenant will "inherit" a new landlord who may not be the person or entity that the tenant would have a wanted as a landlord if they had a choice in the matter.
Terminating Leases The new owners may terminate an existing lease including,
section 8 tenancies, if the new owner intends to move in with 90 days notice.
[This law is set to expire on 12/31/2012]
VICTIMS OF DOMESTIC VIOLENCE GRANTED PROTECTIONS IN RENTALS
Under certain conditions where a tenant was the victim an act of domestic violence, sexual assault or stalking, the tenant may terminate the tenancy by written notice to the landlord.. (The remaining tenants who were not victims of this conduct may still be held responsible under the rental agreement) To prove such acts, the tenant must first obtain a Restraining Order or have made a Police Report. Other conditions and restrictions apply. For the protection of all concerned tenants, if a tenant has committed any of these acts, that tenant may be given a 3 day notice to vacate the premises by the landlord..
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California law for San Diego is applied in these pages. This is not represented to be a full and complete list of all laws that may or may not affect tenants or occupants in properties Such laws may or may not be applicable in other jurisdictions. The information provided herein is of a general nature and is not intended to be taken as specific legal advice. Legal summaries are only the opinion of the Tenants Legal Center and are not intended nor should they be relied upon as any specific representation of any law. For legal advice in a particular situation, promptly consult with an appropriate attorney.