If you find yourself faced with a landlord-tenant dispute in California, you may want to consider your legal options. The law requires landlords to follow a specific procedure relating to a variety of issues, including everything from entering properties to evicting tenants. Understanding the procedure required by law may help you win your case.
Here’s how to win a lawsuit against a landlord.
If you recently purchased real estate in California, you may have a few questions relating to property taxes. It’s a complicated topic so we thought we would start with one of the most common questions we hear from residents in San Fernando Valley, California.
When are property taxes due in California?
If you’re unhappy with the service your contractor provided, you may have legal recourse.
Here’s how to sue a contractor for bad work.
If you cannot resolve a dispute with your landlord verbally, it may be time to take legal action. California tenants can sue their landlord for a variety of reasons.
If you’re like most tenants in California, you probably aren’t trying to create a problem with your landlord.
Sometimes, unfortunately, a problem will develop that cannot be easily resolved through a conversation. These problems are often called landlord-tenant disputes and you may want to consider talking to an attorney about your legal options.
Today, we’re exploring ten common reasons to sue your landlord for negligence so you can make an informed decision regarding how to resolve the dispute.
There is a wide range of reasons to sue your landlord for negligence.
Some of these reasons include housing discrimination, illegally keeping your security deposit, and allowing a unit to fall into an uninhabitable state. If you find yourself struggling to resolve one of the following issues with your landlord, it may be time to take legal action.
Related: How Long Do You Have to Take Someone to Small Claims Court?
We recommend tenants discuss their landlord-tenant dispute with an experienced real estate lawyer, as a lawyer will provide a recommendation on how to proceed.
A landlord-tenant dispute attorney will have the experience needed to guide you toward a resolution.
Here are 10 common reasons to sue your landlord for negligence:
State laws differ on the specific reasons a landlord can take deductions from your security deposit. He or she cannot take deductions for normal wear and tear on the property. And he or she cannot hold on to your security deposit after your rental agreement is over.
Some landlords will fail to return security deposits and claim falsely that you somehow violated the terms of your lease. This is a time for you to sue.
Under California law, a landlord is required to return a tenant’s security deposit within 21 days after the tenant has returned the keys and vacated the property. The landlord must also provide an itemized statement of deductions.
Violating security deposit laws is one of the most common reasons to sue your landlord for negligence.
Want to learn more?
Take a look at this breakdown of California landlord-tenant laws on security deposits.
Your landlord must abide by the rules of the Federal Fair Housing Act.
If he does not, you may have a legal reason to file a suit. But first, you will have to file a complaint with the U.S. Department of Housing and Urban Development (HUD). This department will investigate your complaint and if it is determined that your landlord committed any housing discrimination, further action will be taken.
Landlords are not free to make up lease agreements with any clauses that go against the landlord-tenant laws in your state and are illegal. If, for example, you own a service animal, it is allowed under the Federal Fair Housing Act. Your landlord cannot refuse to allow you to keep your service animal.
Your landlord cannot put in clauses that absolve him from making needed repairs to the property. And he cannot put in a clause that empowers him to force you to move out any time he wishes.
Your landlord is responsible for maintaining a healthy and safe property for his tenants, along with making any appropriate repairs needed.Your landlord may refuse to make such repairs. If this happens, and you feel it necessary to hire someone else to make these repairs, your landlord should reimburse you for the payment you made. If he refuses again, you may sue him to recover the cost of the repairs plus any possible damages.
Your landlord must keep his units inhabitable. That means providing common services for normal living conditions. This includes heat and running water. If you have an issue with these, you should talk to your landlord. If he refuses to respond appropriately, you usually have the right to notify him that you will withhold rent or move out if the issue is not resolved. You may also sue for this negligence.
This is a big one.
Issues that negatively impact the health of the tenant are some of the most common reasons to sue your landlord for negligence.
Landlords are required to tell you if there are any known hazards from lead paint or mold, existing or previous, on the property. These can provide long-term health implications. Intentionally hiding this information from you is illegal and grounds for a lawsuit.
Landlords are often asked to stop by to check something out or make a repair.
This is done at the request of the tenant. But if a landlord plans to enter your property without an invitation, he must provide reasonable notice, and the planned entry must be for legal reasons. Failure to provide notice or illegal entry can give you cause for legal action.
Related: Can a tenant refuse entry to landlord in California?
If you are injured on the property because of the landlord’s neglect to maintain a safe environment, you can file a lawsuit. If you slip and fall due to a lack of legally required stair rails or banisters or wet floors without warning signs, you may have a case for landlord negligence. You cannot sue, however, if your fall was the result of your own carelessness.
Whether there has been some disagreement or not, your landlord may just decide to evict you without any legal cause. He may just try to take back the property without going through the eviction process (a form of harassment). He may file a lawsuit against you. You can go to court to defend yourself. But you can also countersue that he is trying to evict you illegally.
If you’re unable to resolve a landlord-tenant dispute through conversation, you may need to explore your legal options.
We’ve outlined just a few of the reasons to sue your landlord for negligence, so it may be in your best interest to seek guidance from an experienced real estate lawyer. Whether you decide to try to resolve the matter in small claims court or hire the help of a lawyer is up to you.
Understanding how to evict a tenant in Los Angeles is important. It all starts with clear communication. Follow this process carefully to ensure success.
If you rent your property in California, you need to understand how to evict a tenant in Los Angeles legally.
The lease agreement specifies the details of the lease, including duration, cost, and what’s expected from both you as a landlord and your tenant. This agreement is in place to ensure both parties meet the outlined expectations of the lease.
If your tenant doesn’t meet the expectations outlined in the agreement, you may need to exercise your legal power to evict the tenant.
Today, we’re taking a closer look at the process so you know how to evict a tenant in Los Angeles legally.
Let’s get started…
Evicting a tenant isn’t easy.
We recommend finding a lawyer you trust before starting the process, as this will ensure your efforts work in your favor.
In order to successfully evict a tenant, you need to follow a specific process covered by real estate law. Failure to follow the steps outlined may jeopardize your ability to legally evict your tenant, which will be a waste of time and money.
First, let’s take a look at some of the most common reasons for eviction in California.
It’s important to evaluate the issue before exploring the possibility of evicting your tenant.
Evictions are messy and unpleasant, so this quick step may save you a headache if you find the tenant simply made a mistake. If, however, this issue is ongoing and always seems to be a problem, you just need to confirm the issue is against the terms outlined in your lease agreement.
Here are a few common reasons for eviction in California:
If your tenant has violated the lease agreement in any way, it’s time to confront him or her about it with the intention of correcting the issue.
After evaluating the issue and confirming it’s a violation of your lease agreement, it’s time to confront your tenant.
Let’s take a look at the first step…
You may not need to evict your tenant at this point.
Depending on the issue or violation, a simple conversation with your tenant may correct the problem.
Try talking to your tenant about the issue and remind them that they are legally obligated to satisfy the lease agreement. This is often the fastest way to determine whether or not your tenant is receptive and willing to make the correction.
If your tenant responds positively and demonstrates the willingness to make changes, you may not need to take the process any further.
Tenants who understand the severity of the situation will usually take positive action to correct the issue at this point. However, if your tenant avoids you or responds negatively, you may need to take things a little further.
Let’s move on to the next step…
Can’t get a hold of your tenant?
It’s not unusual for tenants to avoid their landlords when they know they’re violated their lease agreement. In this case, they’re forcing your hand and probably won’t correct the issue until you take further action.
At this point, California Landlord-Tenant Law allows you to serve the tenant notice.
This is an important aspect of the eviction process, as this demonstrates you understand how to evict a tenant in Los Angeles according to California law. Depending on the issue, you may either serve an eviction notice for non-payment or eviction notice for lease violation. Both of these notices provide the tenant three days to correct the issue.
The notice should state that failure to make corrections will result in your taking steps toward eviction.
The notice must also include:
We recommend serving the notice to your tenant in person.
If your tenant refuses to accept the notice, you can leave it on the ground near the tenant. You may also leave the notice with someone else at the property as long as they’re at least 18 years old. In addition, you may also deliver the notice to your tenant’s place of work.
To ensure your tenant receives the notice, you may also mail the notice to the tenant’s address.
As a last resort, you may also exercise the “nail and mail” options, which involves posting the notice to the tenant’s door and mail a copy to the tenant for good measure.
In some cases, landlords may be required to provide their tenants a longer time-frame to correct the issue.
Be sure to evaluate the lease agreement before serving an eviction notice as this will indicate the timeframe the tenant is allowed by law.
Here are a few examples:
There are exceptions to these longer notices.
For example, if the tenant is engaging in criminal activity or endangering neighbors, a three-day notice will legally suffice.
If your tenant does not correct the issue within the timeframe provided, you are legally allowed to file an unlawful detainer complaint in court.
Let’s take a closer look…
In order to legally evict a tenant, you must file an unlawful detainer complaint in court.
An unlawful detainer (eviction) is a civil case filed by a landlord or owner who is suing their tenant to obtain a court order giving the landlord the right to regain possession of the property.
The tenant may raise legal objections to the notice or method of being served, or even the complaint itself. An objection to the grounds for eviction is called a “Demurrer,” and an objection to the service is called a “Motion to Quash Service of Summons.”
The landlord will have to respond to these objections in writing.
If the tenant has a good defense, the court will not move for eviction and the landlord may be ordered to pay for the tenant’s legal fees and court costs.
If the landlord wins, the court will issue a writ of possession that orders the sheriff to remove the tenant from the property if, after five days, the tenant has not left voluntarily.
After the five-day waiting period given to the tenant, the sheriff will return to the property to physically remove the tenant, lock the tenant out, and seize any tenant belongings that have been left on the property. The landlord is not allowed to possess the rental or lease unit until after the sheriff has removed the tenant.
If the tenant is behind on his or her rent, the court may award the landlord unpaid rent along with any damages, court costs, and fees. If the court decides that the tenant acted maliciously in giving up the rental or lease unit, it can award the landlord up to $600 in a penalty. And the judgment against the tenant will be reported on the tenant’s credit report for seven years.
There are a few situations that may make the eviction process more difficult.
For example, if your tenant rents an RV or mobile home, you may need additional help executing the eviction process.
You will also find the process more difficult if the property is foreclosed, as there are special protections in place for tenants living in foreclosed properties. In addition, there are special considerations in place if the property is taken over by a bank or investor.
Evictions are serious actions with long-term consequences and need to be handled carefully through the legal system.
If your tenant isn’t meeting the expectations outlined in your lease agreement, it may be time to start the eviction process.
As mentioned, it’s important that you follow all the legal steps required to evict a tenant. Failure to do so will result in a failed attempt and require you to start over, which means more time and money. Understanding how to evict a tenant in Los Angeles the first time around will save you time, money, and spare you the headache of re-starting the process next month.
We recommend you find a lawyer who can help you with the process, as this will ensure your interests are protected.
Looking for help?
Tell us a little about your legal matter and we’ll help you find the right attorney for your needs. Call (818) 213-1849 to learn more or fill out our form to get started.
Los Angeles evictions can be tricky to understand and handle on your own. Here’s everything you need to know for landlords and tenants.
In 2014, there were 21,700 evictions in Los Angeles.
This alarming rate of evictions in Los Angeles was partly in response to the increasing rent throughout Los Angeles County. With that said, the average rate of evictions is still high due to issues involving landlord-tenant disputes and non-payment.
Today, we’re taking a closer look at what landlords and tenants should (and shouldn’t) do during an eviction.
Landlord-tenant relations can be disrupted by either side. Landlords can make unreasonable demands, not keep their properties up to standards, or in dealing with delinquent tenants, can make mistakes in trying to evict them.
Tenants can destroy property, offend neighbors, become delinquent in payments, or in dealing with landlords, make mistakes in how they respond to eviction notices.
No one really wins in these situations. One side or the other has suffered somehow and tries to negative consequences against the other. The best approach for either side is to seek legal counsel to help mitigate the losses suffered and resolve the legal issues involved.
How does either side go about winning their eviction case? What should landlords and tenants do – and not do – to maximize their chances of a good legal outcome should they face legal action?
Here are some of the more important ways that both sides can help or hurt their case.
In California, state law requires that a written notice be given to a tenant before any other actions to evict are taken. The notice should be worded correctly to include the reason the landlord plans to evict the tenant. If the tenant is delinquent in paying rent as agreed, the most common response from the landlord is a three-day notice (but there can be others) to pay or quit. In many cases, the notice will convince the tenant to pay the rent owed, and the lease agreement.
If the tenant moves out, the landlord returns the all or some of the security deposit, if any, to the tenant. If the tenant left any possessions behind, the landlord is legally bound to store them for a reasonable amount of time before keeping or disposing of them.
At the end of the (commonly used) three-day period, if the tenant has not paid the past-due rent or has not “quit” (is still on the property), the landlord can file an unlawful detainer complaint with the court. This is a good time to get a lawyer because there are statutory requirements for all tenant notices, including Civil Procedure 1161. Failing to meet these requirements can result in dismissal of the complaint and can be costly for the landlord who must now start over and file a new complaint.
When the complaint is filed, a 5-day summons is issued, and both the complaint and summons must be given to the tenant before a judge can hear the case. If the tenant files an answer or appears in court, there will be a hearing. In this case, the landlord should have all the documentation on hand, including the lease, the notice, and records of lease payments and non-payments. An attorney can make sure the landlord is well prepared for such a hearing. Lack of documentation can lead to losing the case.
If the tenant fails to answer within the five days, an attorney can also request the court to enter a default judgment in the landlord’s favor and issue a writ of possession to the landlord. The writ can be served to the tenant by the county sheriff who will also schedule the eviction with the landlord – who must be present at the time of the eviction.
Landlords should not try to evict a tenant without hiring an attorney because the process, while not complicated, is very technical. Details can be overlooked and missed details can get a case dismissed. Notices can be poorly worded. Rent payments accepted after the notice deadline can nullify the eviction action.
Landlords need to keep their property safe and meet all health requirements. They should not have any rodent infestations or problems with utilities (electricity, water, plumbing, heating, etc.). And they should not have unresolved building or safety inspection violations.
If any of these or similar conditions exist and the tenant files a complaint with a regulatory agency like the town building and safety department, the landlord may not try to evict in retaliation for that complaint. This is considered a protected action. A tenant in good standing cannot be evicted within 180 days of a protected action.
When tenants sign a lease to rent a property, they agree to all the terms and conditions included in the lease. If they do not abide by the lease terms, the landlord may have cause to evict them. So, it is important for tenants to live up to their lease agreements.
Tenants have rights. But there can be reasons a landlord chooses to evict a tenant. It is usually for being delinquent in payments but it can be for other reasons, too, like repeatedly being too loud and causing neighbors to complain, and after the landlord has warned them about it.
Proper notices are carefully worded in compliance with California state laws and usually contain a time period for a response by the tenant. So, a timely response is needed.
If the tenant is unable to address the landlord’s concerns, by working out a payment arrangement, paying what is owed, or following the landlord’s requests, it is probably a good time to seek the advice of an experienced and qualified landlord-tenant law attorney.
If the case becomes a trial, the landlord will present evidence to a judge that the tenant did not fulfill the responsibilities covered by the lease. The tenant is given the chance to defend his or her case or have an attorney make the defense. There are many possible defenses including the condition of the property, a retaliatory action, or procedural errors in filing the complaint. An attorney is prepared to address any or all of these situations.
Tenants should not stop paying rent. There is no legal defense for this. Tenants cannot live for free on someone else’s property without their consent. If served with paperwork, tenants should not avoid answering or appearing in court. This can result in a default judgment against them.
Tenants should not think that a good defense is the loss of a job, having an illness, or some financial problem. A good defense is proving the tenant has a legal right to remain on the property.
If a landlord offers some kind of settlement that is reasonable, the tenant should not refuse it because doing so will lead to court action as the suit continues. And the tenant faced with legal action should not try to defend against it without a lawyer. There is too much at stake.
If you want to find the right real estate attorney, you need to ask the right questions.
Whether you’re buying or selling a house, real estate is often the largest transaction most of us experience.
For this reason, you need to know which questions to ask a real estate attorney. This will allow you to obtain the information you need to decide whether or not your real estate attorney is right for your needs.
Today, we’re taking a closer look at some of these questions.
Let’s get started …
A real estate attorney will review documents, oversee transactions, and help resolve disputes.
Even if you feel comfortable with your real estate agent, it’s important that you pay attention to the details in the contract, evaluate the property, and make sure you’re protected. Hiring a real estate attorney to help you with this will ensure your interests are protected.
Today, we’re exploring the benefits of hiring a real estate lawyer so you can make the best decision when buying a house.
Let’s get started …
California real estate law provides protections for people buying and selling real estate, but it’s still a smart idea to get a second opinion to ensure your interests are protected.
Even if you’re working with a reputable real estate agent, you need someone with an unbiased perspective in your corner.
Look …
There are plenty of honest real estate agents working throughout Los Angeles, but it’s important to understand they receive a commission for every transaction they close. This financial motivation can sometimes negatively impact your interests.
There’s a simple solution …
You need to hire a real estate attorney.
Unlike real estate agents, attorneys don’t have a personal interest in the outcome of your transaction other than making sure you are protected.
California real estate contracts normally contain an attorney review period clause allowing time for your attorney to review the contract, even after you have signed it.
These contracts contain legal language that a real estate broker may not understand. It is important for you to have an attorney review the contract language and explain to you anything relevant and important to your particular situation.
This gives you the opportunity to make modifications if necessary.
For example, the property to be purchased may be or contain illegal structures.
It may contain hazardous material like asbestos or lead. It may have hidden dangers like termites or dry rot. Any needed inspections and purchase contingencies should be spelled out for your protection. If you do run into an issue, you should know your obligations as well as rights to back out of the contract.
Your attorney works with the other party’s attorney, the real estate brokers, and the mortgage loan officer on a variety of documents and schedules to make sure you are in compliance with any regulations and will meet any required time limits.
The documents may include property deed, mortgage loan documents, closing documents, legal descriptions, title and title insurance policy. Any errors or missing information can result in huge processing delays.
Schedules need to be set for review and approval of such items as home inspections, title search, mortgage commitment, attorney review, and other contingencies.
Once a real estate transaction is closed, it is difficult to make changes.
So, doing it right the first time is very important. Complex documents can be a real challenge. Your attorney will review the financial statement to make sure you are being charged the amount you agreed to, or appropriate credits have been arranged.
Most California real estate is sold using a standard form, with preprinted sales contracts written by, or approved by, the local Realtor Association. Most of them also provide for the attorney review period that allows you, on the advice of your attorney, to get out of the contract even after you signed it.
As mentioned above, real estate agents and brokers are not lawyers.
It is true that they have a fiduciary responsibility to serve your best interests to their abilities. But that doesn’t mean they will think of every possible situation or are immune to mistakes.
Situations arise all the time like negligence, breach of contract, non-disclosure, fraud, and misrepresentation, any of which can be very costly to your business and/or reputation and affect future business transactions as well.
Hiring a real estate attorney will ensure you are protected.
If you are buying or leasing a business property, you need to understand commercial requirements for those actions and the consequences for breach of contract in that environment.
If you are building a new house, you are dealing with construction issues like defects or mechanic liens or contractor delays or safety issues. There are zoning laws and permits, environmental agencies, cities, counties, wetlands, abutting property owners, and more.
There are also local variances and exceptions, special use permits, common interest communities, and local covenants and restrictions. Is your real estate agent familiar with all these?
A non-standard, builder contract can be a problem itself. What exactly is specified and how is it specified? How are items priced? What are any assumptions? What if you have a dispute with your contractor? Will the builder allow you to preview terms and conditions before signing? If not, make sure there is an attorney review clause and period for your attorney so you can back out if there is any issue raised by that attorney.
A good real estate attorney will be aware of all these issues and potential problems and will make the necessary preemptive actions to clear all hurdles for your purchase.
Where do you start?
When hiring a real estate attorney, ask how long he or she has been practicing. Find out how much real-world experience he has in real estate. If you are dealing with something complex like real-estate development, you should look for someone with eight to 15 years’ experience.
Ask how many cases like yours he has handled. If he has had similar cases, he will know what to look out for and can advise you accordingly. He won’t have to put in more time learning the intricacies of your type of real estate.
Ask the attorney how he would handle your case. If he provides a general response like he will handle everything, be suspicious. A seasoned attorney can outline what he would do for you including the filing of certain documents and the closing.
Looking for a real estate attorney in San Fernando Valley?
We can help!
Get up to 30 minutes of free consultation with a real estate attorney in San Fernando Valley through the SFVBA Attorney Referral Service – Click here to learn more.
Do you need an eviction defense attorney?
If you recently found an eviction notice on your door, this may be the case.
Landlords can evict you for a number of legal reasons, including violating a rental agreement, not paying rent, and more. However, there are several local and state laws that exist prohibiting a landlord from evicting you without a legal reason and without following a proper procedure.
This situation may arise due to landlord-tenant disputes.
Today, we’re taking a closer look at eviction in Los Angeles and what you can do to defend yourself.
Let’s get started …
It sounds surprising, but it happens a lot.
You cannot be evicted because you complained about living conditions, reporting code violations, or calling the building inspector. If your landlord tries to evict you within six months of reporting a violation, it could be considered an illegal action, called “retaliation.”
In California, in order for a landlord to legally evict you, he or she must first serve you notice of the reason for the eviction and then must file an eviction lawsuit against you with the court.
The lawsuit is called an unlawful detainer, and in most cases, you would have five days to respond to this lawsuit. An eviction attorney would know this and advise you accordingly.
The landlord cannot take the law into his own hands (called “self-help”) by changing the locks, cutting off utilities, replacing the front door, or removing your belongings. This is actually a crime and is punishable by possible fines and up to six months in jail.
If a landlord tries to evict you or sends you an eviction notice, a rent increase notice, or a notice of any substantial changes in the terms of your lease or tenancy within six months of your having engaged in any of the activities listed above, a court must “presume” that the landlord is retaliating against you. If a court decides that the landlord was retaliating, you cannot be evicted.
It is also illegal for your landlord to evict you on any area of discrimination including your race, color, religion, national origin, sexual orientation, age, ancestry, marital status, handicap, or status as a veteran.
And it is illegal for a landlord to evict you because you get a rent subsidy or receive public assistance.
As one example of the value of a lawyer, she could advise you to send a “demand letter” to your landlord informing him that he will be committing an illegal act and that you will take legal action to enforce your rights.
A lawyer would tell you to keep a copy of this letter so that you have proof that the landlord knew he was violating the law.
You might also be advised to go to court and get a temporary restraining order (TRO) that directs your landlord to stop doing something illegal, return your belongings and restore any utilities that may have been turned off.
If you have followed the proper procedures and the court finds that you have a good defense, the court will not evict you, and your landlord may be subject to liability for your damages, as well as penalties of up to $100 per day for the time that he used the unlawful methods.
Damages may include:
As mentioned above, lockouts and utility shutoffs are crimes.
If you cannot convince your landlord that what he is doing is wrong and illegal, you should contact the local police and report the incident. Sometimes a police officer will be able to influence the landlord to do the right thing.
At other times, police officers will not want to get involved in tenant-landlord disputes, and you will have to hire a lawyer and go to court. But this will take a bit longer.
You can also contact your local housing authority as well as the U.S. Department of Housing and Urban Development (HUD). HUD is the department that prohibits discrimination against tenants based on religion, national origin, familial status and several other aspects. HUD considers any violation a serious offense. This is another valuable option that a good eviction lawyer will know and advise you accordingly.
Real estate fraud is a big problem in Los Angeles.
It may be committed when there is a material misrepresentation of facts or a concealment of facts (non-disclosure) by the real estate broker or agent. It can also occur if there is a breach of fiduciary duty by the broker or agent.
We wanted to take a moment to explore this topic in detail so you can recognize it should you experience it.
Let’s take a closer look.
Fiduciary duties refer to the agent or broker’s responsibility to give the seller the highest level of loyalty, good faith, reasonable care, and honesty. If the agent or broker has knowledge of material facts relative to a sale, he or she is under the highest obligation to disclose those facts.
And this is true even if it results in a canceled sale.
Most fraud happens when the seller and his agent failed to disclose important information to the buyer.
This can include the title of the property, known material defects or other material matters of importance that might affect the buyer’s decision.
The buyer decides what is of material importance. If he or she bases the buying decision on a set of views or opinions based on information provided by the seller and the agent, then that information cannot be fraudulent or misleading.
If any information affects the perceived value or desirability of the property, then that information becomes material to the purchase and must be disclosed to the buyer.
According to California law, real estate transactions require the disclosure of known facts in a document called the Real Estate Transfer Disclosure Statement. If there are other facts not in this document, they should also be disclosed, even in “As is” sales.
The law is designed to protect real estate buyers from an unethical seller and broker and to make sure that the buyer is given sufficient and accurate information on the property. The goal is to help the buyer make an informed decision on whether or not to purchase the property.
An informed decision cannot be made if the information is missing or misleading. The seller and agent have a duty to disclose any known or reasonably discoverable defects in the property. This protects the buyer from a seller or agent who claims ignorance of the defects.
There are many kinds of real estate fraud including predatory lending, fraudulent counseling agencies, over-aggressive service agencies, land fraud and rental fraud, equity skimming, refinance fraud, condominium bait and switch – and much more.
An “as is” property is one in which the buyer is buying a property in the condition that is observable and visible. However, the seller and agent are still responsible for disclosing material facts on defects that are not observable and might affect the buyer’s perception of the value of the property.
The “as is” sale does not relieve the seller or seller’s agent from possible fraud liability stemming from nondisclosure.
The California Supreme Court has ruled that a contract does not protect the seller from real estate fraud.
If you’re purchasing property “as is” be sure you receive information about any defects that are not observable.
Seniors are particularly vulnerable to real estate fraud.
Most of them have homes as their primary asset. When they experience fraud from caretakers or are victimized by mortgage fraud, they are at risk to lose their home or be involved in expensive legal disputes.
Real estate fraud can occur in many ways. Criminals search public records to find homes that have significant equity or are mortgage-free. Many of these are owned by seniors. The con artists pose as the homeowner and take loans that they do not pay back.
When payments are not made on the loan, the real homeowner may be foreclosed, forced to find an attorney to clear the title and risk losing his or her home.
There is also the danger of Los Angeles seniors using “reverse mortgages.” These are home-equity loans that allow homeowners to get cash by converting some of the equity while they retain ownership.
While reverse mortgages may be helpful to some seniors, if they cannot repay the loans, they risk losing their homes.
To prevent real estate fraud, it is suggested that you should not take out any loan, transfer property, or do a reverse mortgage without the advice or trusted friends or family member. They should even be involved as witnesses in any transaction.
If you receive a letter from a mortgage company or bank notifying you of any mortgage on your home that is unfamiliar to you or one for which you never applied, you should call the Los Angeles County Department of Consumer and Business Affairs Real Estate Fraud Hotline at (800) 973-3370. And notify the mortgage company about your concerns and the fact you did not apply for this loan.
It is also advised that you do not sign anything without fully understanding the ramifications of what you are signing. It is a good idea, if you are unsure of the consequences, to have a trusted friend or family member also read and understand any document you sign.
Reverse mortgages are available to homeowners in Los Angeles who are at least 62 years old, have equity in their home, and want additional cash or monthly income.
While in a conventional mortgage, the homeowner pays the bank a monthly payment, a reverse mortgage has the bank paying the homeowner from the equity he has.
The bank gets repaid when the homeowner sells the home, refinances, or passes away and his heirs repay the loan.
Reverse mortgage transactions can be complex. Homeowners in Los Angeles seeking these transactions should consult with a housing counselor approved by HUD. The lender must provide a worksheet that outlines the topics that will be covered by the housing counselor. Under California Law, the homeowner is entitled to a 7-day right-to-cancel. This prevents the lender from charging any fees for this period is over.
The home is appraised, and the lender assesses the value of the property based on equity, the age of the homeowner, and costs of the loan.
The homeowner decides on how to receive the money, either in a lump sum or in monthly payments.
A credit line is established showing how much of the loan can be used and a contract is created to outline the payments to be made to the homeowner as well as the repayments including interest.
Reverse mortgages are more expensive than traditional mortgages because they have higher interest rates and fees. Interest charges are added to outstanding balances each month, so the total debt keeps increasing each month.
As you borrow money on your home, your asset gets reduced. The lowering of equity means lower home and asset value for you and your heirs.
As mentioned above, reverse mortgages have the potential for fraud. For your protection, make ensure that your lender is licensed and in good standing. You should contact the Department of Business Oversight at (866) 275-2677 or Bureau of Real Estate at (877) 373-4542.
Legal aid in Los Angeles for real estate fraud
It is always advisable to seek legal assistance for real estate fraud cases in Los Angeles. A good attorney referral service (ARS) can help find the right attorney for you. Make sure the ARS is qualified and certified by the state of California.
In addition, there are public offices in the County of Los Angeles that can provide guidance They include the Department of Consumer Affairs, County of Los Angeles, and the Los Angeles County District Attorney’s Office.
