Tenants Rights on a Foreclosed Home / Property

tenants rights on a foreclosed propertyTenants Rights on a Foreclosed Property

Under California law, tenants in a foreclosed property have certain rights. The new owner cannot evict the tenant on a short notice.

Entire Duration of the Lease

If you are a tenant with a lease agreement, you can stay in the home until your lease expires.

30 day notice

If you are a month to month tenant and you have been living or using the property for less than a year, the new owner must give you a 30 day notice of termination of tenancy. There is no requirement for providing a good cause for the termination. However in San Diego, the lender must provide a good cause for the termination if the tenant has been a month to month tenant for at least two years.

60 day notice

If you are a periodic tenant for at least a year or you have been living in the home at the time of the foreclosure sale, the new owner must give you a 60 day notice of termination of tenancy. However there are certain exceptions to this 60 day notice requirement – commercial tenancies and certain tenants at will are generally outside this 60 day notice requirement. The 60 day notice requirement will also not apply if you have been named on the foreclosed deed. If the new landlord is selling the home to an individual person the 60 day notice of termination need not be given if:

  • The notice is given within 120 days of opening an escrow
  • The individual buying the home intends to use the home as a residence for at least one year
  • No prior notice to quit has been given

90 day notice

Certain subsidized residential tenants (month to month) are entitled to a 90 day notice of termination of tenancy. This notice need not give a good cause. You will receive a 90 day notice of termination of tenancy if the new owner will be living in the house even though you have a lease in your favor.

3 day notices

The new owner can send a 3 day notice to pay rent or quit. Even if you leave the home within 3 days, it will not relieve you of your lease obligation to pay the rent.

The new owner can send a 3 day notice to cure breach. Under this notice the new owner can require you to do something or refrain from doing something under the lease or rental agreement or the law. Vacating the home within 3 days will not relieve you of your obligation to pay rent under the rental or lease agreement.

The new owner can give you a 3 day notice to quit if you indulge in any illegal activity, cause nuisance or waste, unlawful assignment or sublease to a former owner after the foreclosure.

Tenant Notice

As a tenant, you can give your own notice to vacate. You can give this notice as required by your tenancy – you must a 30 day notice in case of a month to month tenancy or a 7 day notice in case of a week to week tenancy.  Merely serving a notice and moving out will not end your obligation to pay the rent. Once you give a notice terminating the tenancy, you cannot retract the notice without the consent of the new owner.


If you do not move out of the home even after the new owner sends you a notice of termination of the lease, the new owner cannot summarily evict your. The new owner must file an eviction lawsuit against you. After eviction lawsuit is filed, you will receive a notice from the court. You must respond to the lawsuit. Generally you have 5 days to respond to the eviction lawsuit. Based on the circumstances of your case, you may have defenses available including deficiencies in the notice sent by the new owner.

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