Legal Question in Real Estate Law in California

We are living in a rental and just got a notice that the property is now in foreclosure. Are we still legally bound to pay rent?

Asked on 8/12/13, 9:07 am

3 Answers from Attorneys

Anthony Roach Law Office of Anthony A. Roach

Yes. You pay rent to the landlord until the trustee's sale is held and someone purchases the property at the trustee's sale. Then you pay that new person rent until your tenancy is either terminated or extended.

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Answered on 8/12/13, 9:12 am

Timothy McCormick Libris Solutions - Dispute Resolution Services

Mr. Roach is entirely correct. A foreclosure is nothing but an involuntary instead of a voluntary sale of the property. It is no different vis a vis the tenant than a regular sale. Your landlord owns it until it sells and then the new owner becomes your landlord. The only difference between a voluntary sale and a foreclosure is that under current temporary Federal law, the new landlord cannot terminate your tenancy for at least 90-days after foreclosure, as long as you comply with your obligations - particularly paying rent. If you are on a month to month tenancy, your current landlord could terminate the tenancy on either 30 or 60 days notice (depending on how long you have been there), and so could a new landlord in a regular sale. In a foreclosure, however, the new landlord would have to give a minimum 90-days notice. If you have a lease that will not run out for more than 90 days, then you have at least until the lease runs out, regardless of the type of sale.

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Answered on 8/12/13, 12:40 pm
Terry A. Nelson Nelson & Lawless

Of course, or face eviction and suit for back rent.

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Answered on 8/13/13, 5:29 pm

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