Your Rights When the Property Is Sold or Goes Into Foreclosure

When a rental property is sold or the landlord loses it to foreclosure, many tenants panic and believe they must vacate immediately. In California, this is often wrong. Tenants have significant rights that survive both sales and foreclosures.

Sale of Property

Under California law, a new buyer takes the property subject to existing leases. A tenant with a fixed-term lease cannot be evicted by the new owner simply because the property sold — the new owner steps into the prior landlord’s shoes. Month-to-month tenants must be given proper notice (60 days for tenants who have lived there more than one year), and AB 1482 protections apply if the unit is covered.

Foreclosure triggers federal tenant protections. The federal Protecting Tenants at Foreclosure Act (PTFA) gives tenants at least 90 days notice before they must vacate after a foreclosure sale. Tenants with fixed-term leases may stay through the end of their lease term. Tenants who vacate immediately after receiving a foreclosure notice — without waiting for proper notice — often leave before they’re legally required to.

The California Tenant Defense System gives renters the exact tools, templates, and step-by-step guidance to fight illegal evictions, recover wrongfully withheld security deposits, and enforce habitability rights — without paying an attorney to get started. Request your free evaluation here.