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Disclosing Notice of Default to Prospective Residential Tenants in California

By
Real Estate Agent with HomeSmart, Evergreen Realty

Residential landlords in California must disclose any Notice of Default to Prospective Tenants.

new CALIFORNIA LAW

Every landlord in California who offers for rent a residential property containing one-to-four units must disclose in writing to any prospective tenant the receipt of a notice of default that has not been rescinded. This disclosure must be made before executing a lease agreement.  If a landlord violates this law, the tenant can elect to void the lease.

If voided, the tenant can recover one month’s rent or twice the amount of actual damages, whichever is greater, plus all prepaid rent, as well as any other remedies available.  If the lease is not voided and the foreclosure sale has not occurred, the tenant may deduct one month’s rent from future amounts owed.

The written disclosure notice as provided by statute must be in English, Spanish, Chinese, Tagalog, Vietnamese, and Korean.  A property manager will not be held liable for failing to provide the written disclosure notice unless the landlord has given the property manager written instructions to deliver the written disclosure to the tenant.  This law will expire on January 1, 2018.

See California Senate Bill 1191 (codified as Cal. Civil Code § 2924.85) (effective January 1, 2013).

 

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Source of information here is California Association of Realtors, and this is for information only and is not the providing of professional legal or other services.  If you have questions about your rights and obligations under this law, you should contact an experienced real estate attorney. 
 

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Posted by

 

Kathy Stoltman
Ventura, CA
RETIRED

Harrison, I do hope landlords read this and abide by it. Tenants should know this fact before signing any lease.

Apr 27, 2013 02:48 AM
Harrison K. Long
HomeSmart, Evergreen Realty - Irvine, CA
REALTOR , GRI, Broker associate, Attorney

Kathy ... Thanks for your comment.  This is now the law in California on obligations of landlords.  Residential landlords should of course pay special attention to this and other laws that set forth their obligations to tenants.  

Apr 27, 2013 02:53 AM
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale TahoeLauraRealEstate.com
Coldwell Banker Realty, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Harrison - This is information that I hope any landlord that are in trouble with their lender follow.  It's heart-breaking to deal with tenants who have been paying rent and didn't know the place they call home was in trouble. Great information for the public to be aware of!

Apr 27, 2013 07:36 AM
Harrison K. Long
HomeSmart, Evergreen Realty - Irvine, CA
REALTOR , GRI, Broker associate, Attorney

Laura ... You are right that it is challenging to hear about a lease tenant who finds out too late that their landlord is upside down on loans and in default.

Apr 27, 2013 09:17 AM