BILL NUMBER: SB 1191	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 15, 2012
	AMENDED IN SENATE  MAY 8, 2012
	AMENDED IN SENATE  APRIL 23, 2012

INTRODUCED BY   Senator Simitian

                        FEBRUARY 22, 2012

   An act to add Section 2924.9 to 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 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, and who has received a
notice of default from the mortgagee, trustee, or other person
authorized to take the foreclosure sale 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, 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  twice the monthly rent   a total amount
equal to two 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.
   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 2924.9 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  twice the monthly
rent   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.