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)?


Asked on 12/13/08, 4:28 am

5 Answers from Attorneys

George Shers Law Offices of Georges H. Shers

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.

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Answered on 12/13/08, 6:56 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

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.

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Answered on 12/13/08, 7:35 pm
Terry A. Nelson Nelson & Lawless

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.

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Answered on 12/15/08, 12:50 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

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.

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Answered on 12/14/08, 3:59 pm
George Moschopoulos The Law Office of George Moschopoulos

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!

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Answered on 12/13/08, 3:04 pm


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