Bill Text: CA AB331 | 2009-2010 | Regular Session | Amended

California Assembly Bill 331 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Hiring of real property.

Sponsorship: Moderate Partisan Bill (Democrat 7-2)

Status: (Engrossed - Dead) 2009-07-01 - In committee: Set, final hearing. Hearing canceled at the request of author. From committee without further action pursuant to Joint Rule 62(a). [AB331 Detail]

Download: California-2009-AB331-Amended.html

BILL NUMBER: AB 331	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 13, 2009

INTRODUCED BY   Assembly Member Hall

                        FEBRUARY 18, 2009

   An act to  amend Section 2924.8 of   add
Section 1940.95 to  the Civil Code, relating to 
mortgages   real property  .


	LEGISLATIVE COUNSEL'S DIGEST


   AB 331, as amended, Hall.  Mortgages and deeds of trust:
foreclosure.  Hiring of real property.  
   Existing law contains various provisions regulating the hiring of
real property, as specified.  
   This bill would require the landlord, at the time of the execution
of the rental agreement of a single-family dwelling unit, to
disclose in writing if the property is subject to any outstanding
notice of default, pending suit to foreclose a mortgage, pending
declaration of forfeiture, or any pending proceeding to foreclose a
tax lien, as specified. This bill would allow the tenant to recover
twice the actual damages or twice the monthly rent, whichever is
greater, and all prepaid rent, if the tenancy terminates, as
provided. This bill would also provide that a property manager shall
not be liable under these provisions if he or she had no knowledge,
as provided.  
   The provisions of this bill would not apply to premises managed by
a court appointed receiver.  
   Existing law requires that, upon a breach of the obligation of a
mortgage or transfer of an interest in property, the trustee,
mortgagee, or beneficiary record a notice of default in the office of
the county recorder where the mortgaged or trust property is
situated and mail the notice of default to the mortgagor or trustor.
Existing law, until January 1, 2013, requires a specified notice to
be posted on a residential property to be sold if the billing address
for the mortgage note is different than the property address.
 
   This bill would make a nonsubstantive change to these provisions.

   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 1940.95 is added to the 
 Civil Code   , to read:  
   1940.95.  (a) If at the time of the execution of a rental
agreement of a single-family dwelling unit the premises are subject
to any of the following circumstances, the landlord shall disclose
that circumstance to the tenant in writing before the execution of
the rental agreement:
   (1) Any outstanding notice of default under a trust deed,
mortgage, or contract of sale, or notice of trustee's sale under a
trust deed.
   (2) Any pending suit to foreclose a mortgage, trust deed, or
vendor's lien under a contract of sale.
   (3) Any pending declaration of forfeiture or suit for specific
performance of a contract of sale.
   (4) Any pending proceeding to foreclose a tax lien.
   (b) If the tenancy terminates as a result of a circumstance that
the landlord failed to disclose as required by subdivision (a), the
tenant may recover twice the actual damages or twice the monthly
rent, whichever is greater, and all prepaid rent, in addition to any
other remedy that the law may provide.
   (c) This section shall not apply to premises managed by a court
appointed receiver.
   (d) A property manager shall not be liable for damages under this
section if the property manager had no knowledge of the circumstances
that gave rise to a duty to disclose under subdivision (a). 

  SECTION 1.    Section 2924.8 of the Civil Code is
amended to read:
   2924.8.  (a) Upon posting the notice of sale pursuant to Section
2924f, a trustee or authorized agent shall also post the following
notice, in the manner required for posting the notice of sale on the
property to be sold, and a mortgagee, trustee, beneficiary, or
authorized agent shall mail, at the same time in an envelope
addressed to the "Resident of property subject to foreclosure sale"
the following notice in English and the languages described in
Section 1632: "Foreclosure process has begun on this property, which
may affect your right to continue to live in this property. Twenty
days or more after the date of this notice, this property may be sold
at foreclosure. If you are renting this property, the new property
owner may either give you a new lease or rental agreement or provide
you with a 60-day eviction notice. However, other laws may prohibit
an eviction in this circumstance or provide you with a longer notice
before eviction. You may wish to contact a lawyer or your local legal
aid or housing counseling agency to discuss any rights you may have."

   (b) It shall be an infraction to tear down the notice described in
subdivision (a) within 72 hours of posting. Violators shall be
subject to a fine of one hundred dollars ($100).
   (c) A state government entity shall make available translations of
the notice described in subdivision (a) which may be used by a
mortgagee, trustee, beneficiary, or authorized agent to satisfy the
requirements of this section.
   (d) This section shall only apply to loans secured by residential
real property, and if the billing address for the mortgage note is
different than the property address.
   (e) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date.