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Effective January 1, 2013, a landlord who receives a Notice of Default must now disclose this fact to prospective tenants before a lease is signed.

Failure to do so enables the tenant to void the lease and subjects the landlord to potential penalties equal to one month's rent or twice the actual damages incurred by the tenant. This new law comes from Senate Bill 1191. Effective March 1, 2013, California law will be changed to mirror the temporary Federal law by requiring at least 90 days notice to terminate a tenancy following a foreclosure. Lease terms must be honored by the new owner unless the new owner will occupy the property. This new law comes from Assembly Bill 2610.

© 2013 by Fried & Williams LLP. All Rights Reserved. The information contained in this article is general in nature. For advice on any particular matter, please consult with our attorneys because the facts of your situation may be unique and the law changes from time to time.


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