Foreclosing Lender Required To Attempt to Ascertain Identity of Any Tenants Occupying Foreclosed Real Property

Court holds that a foreclosing lender may potentially be liable to for interference with the implied covenant of quiet enjoyment where the lender failed to take steps to ascertain the identity of any tenants, never asked for a copy of the lease, never determined whether the tenants had the right to continue occupying the property, and unreasonably failed to inform or misinformed the police as to the tenants’ right to occupy the premises, which resulted in tenants being prevented by the police from accessing the property. (Nativi v. Deutsche Bank Nat'l Trust Co. (2014) 223 CA4th 261)

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The law firm of Ruzicka, Wallace & Coughlin, LLP represents landlords, property management companies, institutional and private lenders, employers and insurance companies throughout the State of California in real estate, business and employment litigation. The information provided herein is for general interest only and should not be relied upon or construed as legal advice. 


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