Legal Question in Real Estate Law in California

Rental is in foreclosure

I received a notice that the apartment complex I am renting from is going into foreclosure. The property management is demanding that the tenants still pay rent. Is that legal? Can they still collect rent knowing the owner is losing his property?

Asked on 6/11/09, 2:39 am

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Rental is in foreclosure

Legally, you still owe the rent to the current landlord. As a practical matter, during the last 30 days of so pre-foreclosure sale, one might consider just setting the cash aside to see who demands it in the future, if anyone. There is an argument that sending a notice of a coming foreclosure is a breach of the covenant of quiet enjoyment. ("Quiet" in this context does not mean "noise free." It means without third-party challenges to your right of possession).

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Answered on 6/11/09, 12:14 pm

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