Landlord Law Requires Disclosure

Landlords have a legal responsibility to disclose to a potential tenant if there has been a Notice of Default filed on the property.   


Over the years I have had a lot of working experience with both landlords and tenants.  What I have found is that some landlords feel disclosure is not necessary if their intention is to catch up the payments and reinstate the loan.  Their attitude is that it is unnecessary to inform the potential tenant since they are planning to catch up the payments and to keep the property.  Unfortunately, as most of us know, financial stress can lead to one-sided thinking and that is why this law has been established.


Under current law, if the landlord has received a Notice of Default,  it must be disclosed to the potential tenant, in writing ,before the tenant enters into a contract with the landlord. If the Notice of Default has been rescinded, then no disclosure is required. This law applies to any single family residence and residential units with one to four units.

Landlords in default should know that the law also states that if a landlord violates this disclosure law, the tenant can elect to void the lease. If voided, the tenant can recover one month’s rent or twice the amount of actual damages, whichever is greater, plus all prepaid rent, as well as any other remedies available. If the lease is not voided and the foreclosure sale has not occurred, the tenant may deduct one month’s rent from future amounts owed. The written disclosure notice as provided by statute must be in English, Spanish, Chinese, Tagalog, Vietnamese, and Korean. 

It is also important to note that a property manager will NOT be held liable for failing to provide the written disclosure notice unless the landlord has given the property manager written instructions to deliver the written disclosure to the tenant.

NancyPuder is the broker and owner of Signature Properties, a unique company that specializes in both Real Estate Sales and Property Management on the CentralCoast.  You may contact Nancy at Nancy@NancyPuder.com or (805)710-2415.  She always enjoys hearing from you!