Q: Purchased a condo property in San Francisco thru Auction.com. as is.not giving information on the status of tenancy.

A: Under California law, when you purchase a property through an auction, you are generally buying the property "as is," which means that you are accepting the property in its current condition, including any existing tenancies. However, the specific rights and obligations of the new owner may depend on the type of tenancy and the terms of the sale.

Here are some key points to consider:

1. Existing tenancies: If there are existing tenants in the property, the new owner generally becomes the landlord and must honor the terms of the existing lease agreements. The tenants have the right to continue living in the property under the terms of their leases.

2. Rent control: If the property is subject to rent control ordinances, the new owner must comply with those regulations, which may limit the ability to raise rents or evict tenants.

3. Trust ownership: If the property was previously owned by a trust, you should review the trust documents and any related legal filings to determine if there are any specific provisions or limitations that could affect your rights as the new owner.

4. Foreclosure: If the previous owner defaulted on the mortgage, the lender might have initiated a foreclosure process. In some cases, this could lead to the termination of existing leases. However, under the California Tenant Protection Act of 2019 (AB 1482), tenants may have additional protections, even in the event of a foreclosure.

Worst-case scenario:

- You may have to assume responsibility for existing tenants and honor their lease terms, which could limit your ability to occupy, renovate, or sell the property in the short term.

- If there are any outstanding liens, unpaid property taxes, or other encumbrances on the property, you may be responsible for addressing those issues as the new owner.

To better understand your rights and obligations, it is advisable to:

1. Carefully review all available documentation related to the property, the trust, and the sale.

2. Communicate with the auction company or the seller to gather more information about the property's status and any existing tenancies.

3. Consult with a qualified real estate attorney who can help you assess your specific situation and advise you on the best course of action.

A: Assuming it was a foreclosure auction, there is no warranty of title or occupancy at the time of sale. The new owner has the right to possession subject to the protecting tenants at foreclosure act which requires the new purchaser to honor the existing lease. The eviction process is a possible remedy, but it is a long and arduous process.

A: Thank you for asking the question!

There is a duty of disclosures in general real property sale transactions. But, the properties you buy in the foreclosure asset a more limited and narrower duty of disclosure on the foreclosing party.

The are obliged to reveal defects that they are only aware of (actual knowledge is required).

The inspection of the property is not allowed. However, If there is anything on the property that with an non-intrusive investigation would be revealed, the buyer is considered to be on notice.

If the condition of the property is a way that you could visit the property from outside, you are considered to be on notice. But, if having access to outside of the property is impossible (property is in gated apartment complex that do not let strangers get in, or or is in a high-rise and the windows cannot be located from outside), buyer may be able to prove that there was no notice. Then, the buyer must show that the foreclosing entity has actual notice to be able to keep them liable.

In regards to tenants, the new owner of the property must respect the lease if the lease has priority to the foreclosure (the date of lease goes back before notice of default got recorded.) Then, the new owner must wait until the end of lease to terminate the lease.

You can check the lease and see if it has a provision for termination of lease in case of foreclosure. If that is so, you can terminate the lease.

This is merely discussion of CA general laws and not a legal advice. For a comprehensive advise, more specific facts and investigation are needed. I recommend you consult with an attorney in more detail.

Please let me know if you need further assistance.

Wish you luck.