Foreclosure: Record Trustee’s Deed Before Serving 3-Day Notice

  When real property is purchased at a foreclosure sale, it is frequently necessary for the new owner to institute unlawful detainer proceedings to recover possession. Is it necessary for the Trustee’s Deed Upon Sale to record before a valid 3-day notice to quit is served?

  In Dr. Leevil, LLC v. Westlake Health Care Center, the California Supreme Court answered this question in the affirmative. In reversing the Court of Appeals, the Court held that duly perfected title, including the recording of the Trustee’s Deed Upon Sale, is required before a valid 3-day notice to quit may be served.

  Practice tip: after purchase at a foreclosure sale, duly perfect title and do not serve a 3-day notice to quit before the trustee’s deed records.

 

Bona Fide Lease Survives Foreclosure Under PTFA

  The Sixth Appellate District concludes, in Nativi v. Deutche Bank, that the Protecting Tenants Against Foreclosure Act of 2009 (scheduled to sunset the end of 2014) causes a bona fide lease for a term to survive foreclosure through the end of the lease term — subject to the limited authority of the immediate successor in interest to terminate the lease, with proper notice, upon sale to a purchaser who intends to occupy the unit as a primary residence. The Act impliedly overrides state laws that provide less protection but expressly allows states to retain the authority to enact greater protections. Bona fide tenancies for a term that continue by operation of the PTFA remain protected by California law.

Landlord May Hold Weekend Open House

  Civil Code section 1954 specifies the conditions under which a landlord may enter a dwelling. Subdivision (b) permits a landlord to enter a dwelling to exhibit the premises to prospective or actual purchasers during “normal business hours.” Does this include weekend open houses? Continue reading

Answers to Your Tenants’ Rights Questions

  If you are a residential tenant you may have questions regarding tenants’ rights. The first place to turn when you have a question regarding your tenancy is your lease or rental agreement. Read it — the entire document including any attached rules. In many cases there will be a provision which directly answers your question. Continue reading