New California Law Requires Disclosure of Foreclosure to Tenants

For Investors and Rental Property Owners

As of  January 1, 2013, property managers and landlords in California are required to  disclose in writing to any prospective tenants if a notice of default has been  recorded against the property. The law applies to rentals of single-family  homes and apartment buildings of no more than four units.
The  disclosure also includes a notice that if a new owner takes ownership of a  property following foreclosure, the owner will not be able to evict the tenants  for at least 90 days after a written eviction notice is provided (in many  cases).  Supporters  of the new bill say that such a disclosure is critical for tenants in making an  informed decision about where to live. Opponents, however, argued that such  disclosures could worsen the financial conditions of the landlord and even hasten foreclosure.  For  landlords who violate the disclosure requirement, tenants may be able to void  any lease and recover one month’s rent or twice the actual damages — whichever  is greater. Tenants may also be able to recover all prepaid rent from the  landlord if the landlord violates the disclosure requirement, according to the  new law. The  California Association of  REALTORS® is offering a new form (LID) for the new  disclosure to its members. 
“The Law applies to rentals of  single-family homes and apartment buildings of no more than four units.”
This entry was posted in Chase Short Sales, Credit Challenges, Foreclosure, Pre Foreclosure, Short Sales, Short Sales and Rental Property and tagged , , , , , , . Bookmark the permalink.

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