BILL NUMBER: SB 1191	CHAPTERED
	BILL TEXT

	CHAPTER  566
	FILED WITH SECRETARY OF STATE  SEPTEMBER 25, 2012
	APPROVED BY GOVERNOR  SEPTEMBER 25, 2012
	PASSED THE SENATE  AUGUST 22, 2012
	PASSED THE ASSEMBLY  AUGUST 20, 2012
	AMENDED IN ASSEMBLY  AUGUST 16, 2012
	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 2924.85 of the Civil Code,
relating to landlord-tenant relations.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1191, 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
offers for rent a single-family dwelling, or a multifamily dwelling
not exceeding 4 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has not been rescinded with respect to a mortgage or deed of trust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 to disclose the notice of default in writing
to any prospective tenant prior to executing a lease agreement for
the property. The bill would provide that a violation of those
provisions would allow the tenant to void the lease and entitle the
tenant to recovery of one month's 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 one month's
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.


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
one month's 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 one
month's 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.