BILL NUMBER: SB 1191	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 7, 2012
	AMENDED IN SENATE  MAY 15, 2012
	AMENDED IN SENATE  MAY 8, 2012
	AMENDED IN SENATE  APRIL 23, 2012

INTRODUCED BY   Senator Simitian
    (   Coauthor:   Assembly Member  
Hall   ) 

                        FEBRUARY 22, 2012

   An act to add  and repeal  Section  2924.9 to
  2924.85 of  the Civil Code, relating to
landlord-tenant relations.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1191, as amended, Simitian. Landlord-tenant relations:
disclosure of notice of default.
   Existing law generally regulates the hiring of real property,
including, among other things, specifying certain obligations imposed
on landlords and obligations imposed on tenants. Existing law, until
January 1, 2013, requires a tenant of property upon which a notice
of sale has been posted to be provided a specified notice advising
the tenant that, among other things, the new property owner may
either give the tenant a new lease or rental agreement, or provide
the tenant with a 60-day eviction notice, and that other laws may
prohibit the eviction or provide the tenant with a longer notice
before eviction.
   This bill would  , until January 1, 2018,  require every
landlord who  is in default under a mortgage or deed of trust
secured by a single-family dwelling, or a multifamily dwelling not
exceeding 4 units,   of   fers for rent a
single-family dwelling, or a multifamily dwelling not exceeding 4
units,  and who has received a notice of default  from
the mortgagee, trustee, or other person authorized to take the
foreclosure sale   that has not been rescinded with
respect to a mortgage or deed of trust secured by that property 
to disclose the notice of default in writing to any prospective
tenant prior to executing a lease agreement for the property. The
bill would  also  provide that a violation of those
provisions would allow the tenant to void the lease and entitle the
tenant to recovery of twice the monthly rent or twice the amount of
actual damages from the landlord, and all prepaid rent,  if the
tenant   voids the lease and vacates the property  in
addition to any other remedies that are available. The bill would
also provide that if the tenant elects not to void the lease and the
foreclosure sale has not yet occurred, the tenant may deduct a total
amount equal to  two   2  months' rent from
future rent obligations owed the landlord who received the notice of
default. The bill would specify the content of the written
disclosure notice , and would require the notice to be provided
in English and other languages, as specified. The bill would exempt
  a property manager from liability for failing to provide
the written disclosure notice unless the landlord notified the
property manager of the notice of default and directed him or her in
writing to deliver the written disclosure  .
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 2924.85 is added to the 
 Civil Code   , to read:  
   2924.85.  (a) Every landlord who offers for rent a single-family
dwelling, or a multifamily dwelling not exceeding four units, and who
has received a notice of default that has not been rescinded with
respect to a mortgage or deed of trust secured by that property shall
disclose the notice of default in writing to any prospective tenant
prior to executing a lease agreement for the property subject to the
notice.
   (b) A violation of subdivision (a) shall void the lease at the
election of the tenant and shall entitle the tenant to recovery of
twice the monthly rent or twice the actual damages, whichever is
greater, and all prepaid rent from the landlord who received the
notice of default, in addition to any other remedy that the law may
provide.
   (c) In lieu of the remedies in subdivision (b), if the tenant
elects not to terminate the lease and the foreclosure sale has not
occurred, the tenant may elect to deduct a total amount equal to two
months' rent from future rent obligations owed the landlord who
received the notice of default.
   (d) The written disclosure notice required by subdivision (a)
shall be provided in English and the languages described in Section
1632 substantially in the following form:


   The foreclosure process has begun on this property, and this
property may be sold at foreclosure. If you rent this property, and a
foreclosure sale occurs, the sale may affect your right to continue
to live in this property in the future. Your tenancy may continue
after the sale. The new owner must honor the lease unless the new
owner will occupy the property as a primary residence, or in other
limited circumstances. Also, in some cases and in some cities with a
"just cause for eviction" law, you may not have to move at all. In
order for the new owner to evict you, the new owner must provide you
with at least 90 days' written eviction notice in most cases.

   (e) A property manager shall not be liable under this section for
failure to provide the written disclosure notice in subdivision (d)
unless the landlord has notified the property manager of the notice
of default and directed him or her in writing to deliver the written
disclosure, in which case the property manager shall be liable to the
extent specified in subdivision (b). This subdivision shall not
preclude a landlord from being held liable when a tenant does not
receive the written disclosure notice in subdivision (d).
   (f) The rights and remedies provided by this section are in
addition to and independent of any other rights and remedies under
any other law. Nothing in this section shall be construed to alter,
limit, or negate any other rights and remedies.
   (g) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.  
  SECTION 1.    Section 2924.9 is added to the Civil
Code, to read:
   2924.9.  (a) Every landlord who is in default under a mortgage or
deed of trust secured by a single-family dwelling, or a multifamily
dwelling not exceeding four units, and who has received a notice of
default from the mortgagee, trustee, or other person authorized to
take the foreclosure sale shall disclose the notice of default in
writing to any prospective tenant prior to executing a lease
agreement for the property subject to the notice.
   (b) A violation of subdivision (a) shall void the lease at the
election of the tenant and shall entitle the tenant to recovery of
twice the monthly rent or twice the actual damages, whichever is
greater, and all prepaid rent from the landlord who received the
notice of default, in addition to any other remedy that the law may
provide.
   (c) In lieu of the remedies in subdivision (b), if the tenant
elects not to terminate the lease and the foreclosure sale has not
occurred, the tenant may elect to deduct a total amount equal to two
months' rent from future rent obligations owed the landlord who
received the notice of default.
   (d) The written disclosure notice required by subdivision (a)
shall be substantially in the following form:

The foreclosure process has begun on this property, and this property
may be sold at foreclosure. If you rent this property, and a
foreclosure sale occurs, the sale may affect your right to continue
to live in this property in the future. Your tenancy may continue
after the sale. In order for the new owner to evict you, the new
owner must provide you with at least 60 days' written eviction notice
or 90 days if required by any other provision of state or federal
law. However, some laws may prohibit eviction.