can a new owner charge rent w/o a lease agreement
Submitted by pooh_love_1812
from CA
- 05/15/2009 - 3:38pm
My father in law is a renter in a home that was in foreclosure & was recently purchased. The new owners were going to let him stay , but they are charging too much for rent. As an elderly retired gentlemen, he can't afford what they asking for. He told them that, and they said that he could be out by the end of the month. Now today the delivered a letter saying he owes them 400.00$. can they do that.
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Hi, I'm Bret@AmericanMoneyMan.com and I buy notes! If your father in law is in CA, then upon foreclosure he became a month to month tenant. The new owners should be happy that he occupies the home rather than it being vacant. If they plan on fliping the house, your father in law should offer to stay and keep the house up and show it to potential buyers for a reduced rent amount. However, it sounds more like the new owners plan on making it "income property". If this is the case and if your father in law has been living there for over one year, then the new owners are required to give him a 60 day notice of an increase of rent. Your father in law's security deposit which he gave to the former owner is probably history. If the new owners attempt to remove him via filing an "unlawful detainer" action, they will probably lose if the did not give him proper notice. They will just have to comply by making the proper notice and then uping the rent when they are allowed. At that point your father in law will have to decide to move or stop paying rent while looking for a place to move to. A new UD action can move as fast as one month depending on how busy the local court is AND if the new owner just goes for possession only.
Hope this info helps.
there is no way they can do this. He did not sign anything. I would not worry about this at all. he just needs to get out.
My daughter just moved into a fourplex in July 2010, then last month (Sept) she and the other tenants received a 60 day notice to vacate because the apartment is in foreclosure. She paid July, August, and September rent, but not October. The owner keeps calling her and telling her that she needs to pay him his rent or he will change the locks, eventhough he is in foreclosure and sale of property is this Month. Should she pay? Is he harrassing her? We know he's been pocketing the money. He received a default letter in June 2010. We live in Concord, CA. Please let us know what to do?
Hi Alina,
Under the letter of the law the rent is due regardless of the fact that the owner is behind on the mortgage payments. That said, he cannot just change the locks and toss her out. He would have to first give her a 3 Day Notice to Pay Rent or Quit and then he would have to file an Unlawful Detainer which would start the eviction process. Many tenants stop paying rent when they receive notice that the property is going to Trustee Sale since it is rare that an owner will evict them when the property will be foreclosed upon soon. Keep in mind that the owner could be in the process of negotiating a modification or other workout with the bank and he may be willing to proceed with the eviction if that is the case.
I agree with denver, they can't behave this way without the signature - no real need to panic in my eyes
We are within the rental property market, renting houses in Wirral" and have seen this situation occur many times. Unfortunately in this situation the landlord has the upper-hand. Michelle is correct and unless your father in law has been living their for a year, your options do become more limited. I hope it works out!
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