Legal Question in Real Estate Law in California

Re: Tenants living in property after foreclosure

I beg to differ with my colleages.

While it is true that when a building is sold voluntarily, the existing tenants' leases are not disturbed by the sale and they remain in place with the new owner taking the property "subject to" the existing leases.

In a foreclosure, however, the outcome is almost always different, because the rights of the foreclosing lender are almost always senior to the lessee's rights. In rare cases, there may be a long-term lease entered into before the obligation being foreclosed was recorded; in such a case, the question becomes whether the lender had actual or constructive notice of the lease (which is actually pretty likely), and if so, the lease survives the foreclosure, but not otherwise.

After the foreclosure sale and upon delivery to the buyer of a trustee's deed, the buyer is entitled to immediate possession, and the lessee becomes a tenant at sufferance. I believe the buyer can give a three-day notice, and if the tenant does not more out, the buyer can begin eviction proceedings by commencing an unlawful detainer action.

So, you can add up the time, figuring the UD may take around a month from filing to the sheriff's arrival.

Re: Tenants living in property after foreclosure

If I understand your question, your property is in foreclosure and will soon have a new owner. Your tenants are not required to leave, and the new owner takes subject to the existing lease. If the tenants are month-to-month, the new owner has to give appropriate legal notice -- i.e. 30 days if rent is current.

Re: Tenants living in property after foreclosure

As Mr. Cohen has written, the tenants have the same rights as before the foreclosure.

There is nothing I can add.