We have completed a 1 yr lease on a rental property and are now month to month. We just received a notice of public auction taped to our front door. We rented through a realtor who represents the previous owner. What should we do?
You will need to continue paying the rent until there is a change in ownership.
You will need to find out more information regarding the sale. Is this a trustee's sale in a non-judicial foreclosure? Is this a tax lien sale?
Under current federal law, the new owner (the successor in interest to a foreclosed property) must to provide tenants with at least 90 days notice to vacate and to generally honor the tenant's existing lease for the remaining term of the lease, unless the property is sold to a person who intends to occupy it as his or her primary residence. The Protecting Tenants at Foreclosure Act of 2009 (PTFA), part of the Helping Families Save Their Homes Act of 2009 (Public Law 111-22, approved May 20, 2009), requires that tenants residing in foreclosed residential properties be provided notice to vacate at least 90 days in advance of the date by which the immediate successor, generally, the purchaser, seeks to have the tenants vacate the property. Except where the purchaser will occupy the property as the purchaser's primary residence, the terms of any bona fide lease also remain in effect.
Frank W. Chen is licensed to practice law in the State of California. The information presented here is general in nature and is not intended, nor should be construed, as legal advice. This posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, consult your own attorney.
Yes the owner of your rental property continues to own the property and are entitled to the rent as long as they own it. If it does go to auction and the lender or another entity becomes the new owner at that time you would have to work with them as the new landlord. They are required to give you the 90 days under new law or you can see if you can work out a new rental agreement.
The communication above is provided for informational purposes only. It is not legal advise and does not create an attorney client relationship with anyone. Please consider the information above and get competent legal advise from your trusted advisor.
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