California Tenant Defense System | Justice Foundation
When a rental property goes into foreclosure and is ultimately sold at a trustee’s sale, the new owner’s relationship to existing tenants is governed by federal law — the Protecting Tenants at Foreclosure Act (PTFA) — and California state law. Tenants in foreclosed properties have more rights than most people realize, including significant notice periods before they must vacate.
The Protecting Tenants at Foreclosure Act
The federal PTFA, reinstated permanently in 2018, requires that any purchaser of a foreclosed residential property take the property subject to any existing bona fide lease. A “bona fide lease” means: the tenant is not the mortgagor (the person who owned the property), the lease was entered at arm’s length, and the rent is not substantially less than fair market rent (or is reduced because of a government subsidy). If your lease meets these criteria, the new owner must honor the remaining lease term.
Month-to-Month Tenancies After Foreclosure
For month-to-month tenants, the PTFA requires the new owner to provide at least 90 days’ notice before requiring the tenant to vacate. This applies even if the new owner intends to move into the property or immediately convert it. The 90-day notice requirement is a floor — California law and local ordinances may provide more protection.
Your Notice Rights
When a foreclosure sale occurs, you are entitled to notice. The new owner must serve a proper written notice of termination — 90 days minimum under the PTFA — before filing any eviction proceeding. An eviction filed without this minimum notice is procedurally defective. The right to remain through the lease term (for fixed-term leases) or for at least 90 days (for month-to-month tenancies) is a significant protection that gives you time to find alternative housing without the pressure of an immediate eviction deadline. The Justice Foundation kit covers foreclosure tenant rights in detail.
California Tenant Defense System 
Leave a comment