California- NEW LAW effective January 1, 2013 - Disclosure of Notice of Default-Landlords Responsibility

[NoCal]

Hello,

I hope Tom Eason see’s this

I just received an email from my Property Management company. They are upset with me because the tenants are giving them a hard time because the NOD was filed 11 days after they moved in.

What does this mean in English? I don’t understand what the tenant can get away with – the scope of the ‘rights and remedies’ if the landlord is in violation. Luckily our NOD was filed after the Lease Agreement was signed, but I want to be very clear on what the impact of this bill will have on me and any future tenants

Senate Bill

No. 1191

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State of California- NEW LAW effective January 1, 2013

Disclosure of Notice of Default-Landlords Responsibilty

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An act to add and repeal Section 2924.85 of the Civil Code, relating to landlord-tenant relations.




LEGISLATIVE COUNSEL'S DIGEST- CALIFORNIA LAW 2013

SB 1191, Simitian. Landlord-tenant relations: disclosure of notice of default.
Existing law generally regulates the hiring of real property, including, among other things, specifying certain obligations imposed on landlords and obligations imposed on tenants. Existing law, until January 1, 2013, requires a tenant of property upon which a notice of sale has been posted to be provided a specified notice advising the tenant that, among other things, the new property owner may either give the tenant a new lease or rental agreement, or provide the tenant with a 60-day eviction notice, and that other laws may prohibit the eviction or provide the tenant with a longer notice before eviction.
This bill would, until January 1, 2018, require every landlord who offers for rent a single-family dwelling, or a multifamily dwelling not exceeding 4 units, and who has received a notice of default that has not been rescinded with respect to a mortgage or deed of trust secured by that property to disclose the notice of default in writing to any prospective tenant prior to executing a lease agreement for the property. The bill would provide that a violation of those provisions would allow the tenant to void the lease and entitle the tenant to recovery of one month’s rent or twice the amount of actual damages from the landlord, and all prepaid rent, if the tenant voids the lease and vacates the property in addition to any other remedies that are available. The bill would also provide that if the tenant elects not to void the lease and the foreclosure sale has not yet occurred, the tenant may deduct a total amount equal to one month’s rent from future rent obligations owed the landlord who received the notice of default. The bill would specify the content of the written disclosure notice, and would require the notice to be provided in English and other languages, as specified.

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

Section 2924.85 is added to the Civil Code, to read:
2924.85.

(a) Every landlord who offers for rent a single-family dwelling, or a multifamily dwelling not exceeding four units, and who has received a notice of default that has not been rescinded with respect to a mortgage or deed of trust secured by that property shall disclose the notice of default in writing to any prospective tenant prior to executing a lease agreement for the property subject to the notice.
(b) A violation of subdivision (a) shall void the lease at the election of the tenant and shall entitle the tenant to recovery of one month’s rent or twice the actual damages, whichever is greater, and all prepaid rent from the landlord who received the notice of default, in addition to any other remedy that the law may provide.
(c) In lieu of the remedies in subdivision (b), if the tenant elects not to terminate the lease and the foreclosure sale has not occurred, the tenant may elect to deduct a total amount equal to one month’s rent from future rent obligations owed the landlord who received the notice of default.

The rights and remedies provided by this section are in addition to and independent of any other rights and remedies under any other law. Nothing in this section shall be construed to alter, limit, or negate any other rights and remedies.
This section shall remain in effect only until January 1, 2018, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2018, deletes or extends that date.

[Evan Bedard]

What does this mean in English? I don’t understand what the tenant can get away with – the scope of the ‘rights and remedies’ if the landlord is in violation. Luckily our NOD was filed after the Lease Agreement was signed, but I want to be very clear on what the impact of this bill will have on me and any future tenants

Thanks very much for sharing this with the community Nocal. After January of next year any prospective landlord in default and have received an NOD shall disclose if this information with the tenant prior to completing the lease. This is very important information for anyone looking to rent their home out this coming year. I do not believe there is anything the tenant can do here and they may likely have up to 6 months or more before an auction date is scheduled.

[DesertMe]

About time ! I don't normally agree with the "nanny states" over regulation, but this is something that was needed. Too many renters are burned by less than forthright landlords. Kind of puts the kibosh on that whole premise of "Sure rent it out-get that cash flow, and to heck with telling your tenants it's going back to the bank"..After all, their just "renters"..