BILL ANALYSIS �
SB 825
Page 1
SENATE THIRD READING
SB 825 (Corbett)
As Amended August 6, 2012
Majority vote
SENATE VOTE :Vote not relevant
JUDICIARY 7-3
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|Ayes:|Feuer, Atkins, Dickinson, | | |
| |Huber, Monning, | | |
| |Wieckowski, | | |
| |Bonnie Lowenthal | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Wagner, Gorell, Jones | | |
| | | | |
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SUMMARY : Maintains existing law for six years with respect to
notifying tenants of rights when rental property is sold in
foreclosure. Specifically, this bill continues existing law in
effect for an additional six years requiring that any notice to
quit served within one year after a foreclosure sale include
additional notice to renters regarding specified rights and
responsibilities with respect to the new owner.
FISCAL EFFECT : None
COMMENTS : In support of the bill the author states, "California
enacted important tenant protections which seek to give tenants
additional time to search for a new home and move when the unit
in which they are living is foreclosed upon. President Obama
likewise recognized the importance of additional time and signed
the Protecting Tenants at Foreclosure Act of 2009, requiring
that tenants be given 90-days' notice and that fixed-term leases
be honored. Despite the establishment of these important
protections, many innocent tenants have received notices to
vacate that are unclear and contain different timeframes in
which the tenant must vacate the property. For example, some
notices state that the tenants must leave in three, 30, 60, or
90 days. These multiple and conflicting timeframes - combined
with complex legalese - are confusing to tenants. In addition,
some tenants have received a three-day notice to quit that is
SB 825
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addressed to the homeowner, but not to the tenant. Innocent
tenants do not realize that they must take certain steps to
protect their rights. In other cases, innocent tenants are
unaware of their rights under federal law and take the three-day
notice to quit at face value and assume that they must leave
within three days. SB 825 will help to protect tenants and
ensure that they receive the full benefits of the important
protections that have been enacted over the last few years by
extending the sunset on important protections put in place by SB
1149 (Corbett, 2010)."
This bill would continue existing law in effect for an
additional six years, consistent with other foreclosure-related
measures.
Analysis Prepared by : Kevin G. Baker / JUD. / (916) 319-2334
FN: 0004498