What are my rights as a tenant in a short sale?

The house we are tenants at has been in the foreclosure process for a year. Our landlord who is the owner and real estate agent has been trying to short sale this property. By what she said the short sale is to be final on the 8th of next month. We have never received anything in writing from her until yesterday and we got a 3 day notice to pay or quit. I would like to know can she do that and what my options are?

Asked on August 31, 2011 California


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

When there is a short sale of real property where the property is rented to a tenant, the new owner takes title to the property at close of escrow subject to the lease in effect concerning the rental.

If you have a remaining term under your lease and are current with your rent, then you are allowed to remain as a tenant in the rental under Calfornia law until the term of the lease ends. If you are on a month-to-month lease, the current owner can serve you with a notice of termination of your lease which would be legal and proper notice advising you that your lease is at an end.

Good luck.

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