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Have 21 mo. left on lease. House placed in Short sale : can new owners void our lease? House not in foreclosure

San Clemente, CA |

We want to record lease: get our deposits into escrow so $ not lost: as well as funds to cover current lease agreement for yard maintenance.

Attorney Answers 2


Your lease is senior to the grant deed transferring title to the property at the close of the short sale escrow, so the sale to the new owner is subject to your pre existing lease. The new owner will be the landlord under the lease. There is no need to record the lease. There is no legal remedy or right to have your security deposit put into escrow. As a successor in interest, the buyer will be responsible for your security deposit, unless the seller returns it to you before close of escrow. [See Civil Code 1950.5(h)]

Richard A. Rodgers, Esq.
(805) 230-2525
200 N. Westlake Blvd. Ste 201
Westlake Village, CA 91362

As stated in the AVVO.COM Terms and Conditions of Use, this answer is not intended as legal advice, and no attorney-client relationship or privilige is created by this response.

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I agree with Attorney Rodgers. The new owners take title subject to your existing lease.

Frank W. Chen has been licensed to practice law in California since 1988. The information presented here is general in nature and is not intended, nor should be construed, as legal advice for a particular case. This posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, please consult with your own attorney.

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