New CA Real Estate Law- Disclosure of Foreclosure to Prospective Tenants - Landlord in Default Addendum
by Ben Nicolas
on Tuesday, January 15th, 2013 at 7:00pm.
As of January , 2013, property managers and landlords in California are required to disclose in writing to any prospective tenants if a notice of default has been recorded against the property (Landlord in Default Form LID). The law applies to rentals of single-family homes and apartment buildings of no more than four units.
The disclosure also includes a notice that if a new owner takes ownership of a property following foreclosure, the owner will not be able to evict the tenants for a least 90 days written eviction notices in many cases.
Supporters of the new bill say that such a disclosure is critical for tenants in making an informed decision about where to live. Opponents, however argued that such disclosures could worsen the financial conditions of the landlord and even hasten foreclosure.
For landlords who violate the disclosure requirement, ,tenants may be able to void any lease and recover one month's rent or twice the actual damages- whichever is greater. Tenants may also be able to recover all prepaid rent from the landlord if the landlord violated the disclosure requirement, according to the new law.
The California Association of REALTORS is offering a new form (LID) for the new disclosure to it's members.