Month: March 2021

California Rental Agreement Laws

Rental Agreement Laws

California has some of the most complex landlord-tenant laws in the nation. There are extensive protections for tenants, as well as separate rent-control laws in a number of municipalities such as San Francisco, Los Angeles, Sacramento, and others. Residential rental agreements must clearly communicate the terms of the tenancy and abide by all applicable laws.

Faulty or poorly drafted rental agreements can create all kinds of headaches for landlords and possibly provide an eviction defense for tenants. To minimize problems in the future, we highly recommend that property owners consult with a real estate attorney when creating their rental agreements.

Basic Terms of a Rental Agreement

Every rental agreement for a residential property should include these key terms at the very least:

  • Names of All the Tenants – It’s also a good idea to include an occupancy limit and identify what happens if additional people come to live on the property without notifying the landlord.
  • Physical Address of the Property
  • Rental Period – Identify the time period the lease will last (commonly 6, 12, or 24 months). Also state whether it will become a month-to-month agreement after the initial period expires. Note that, under California law, the tenancy will automatically continue month-to-month if the landlord accepts rental payment.
  • Rent Amount
  • Rent Payment Details – Identify when the rent is due, where and to whom it should be paid, the method of payment, and late fees.
  • Security Deposit Information – In California, the security deposit may not exceed the value of two months’ rent (three months if the property is furnished).
  • Utilities Payment – Identify which party is responsible for the payment of utilities such as electricity and gas.
  • Maintenance and Repairs – Identify which party is responsible for maintaining and repairing the property.
  • Pet Policy – Clearly communicate the policy on pets, including what types of pets are allowed and the responsibilities of the tenant.

Tenant Protection Act

Passed in 2019, the Tenant Protection Act made significant statewide changes to California landlord-tenant law, including adding just-cause termination requirements and restrictions on rent increases. Here is a brief summary of the major changes.

Once a tenant has occupied a property for 12 months or more, the landlord may only terminate the tenancy for “just cause.” Just cause can include failure to pay rent, material breach of rental agreement terms, criminal activity, and more. There also “no-fault” causes to terminate, such as when the owner or the owner’s immediate family wishes to occupy the property.

Under the rent-increase provisions, in any 12-month period a landlord may not increase the rent by more than the rate of inflation (defined by the Consumer Price Index) plus 5%, or a total of 10%, whichever is lower. A number of dwelling types are excluded, such as single-family homes and buildings that are less than 15 years old.

Landlords must disclose these changes in the law to existing and new tenants by written notice or in an addendum to the rental agreement.

Consult a Landlord-Tenant Attorney

In this complex and always-changing legal landscape, it is crucial to have expert advice. Our team of Southern California real estate attorneys can help you draft a rental agreement that makes sure your interests and property are protected. Schedule an appointment today.

What You Need to Know About Adverse Possession

Adverse possession, sometimes called squatter’s rights or squatter’s law, is probably the most contentious way to acquire title to real estate. It has existed in some form or another for thousands of years, going back at least to the time of ancient Rome, eventually arriving in the United States as part of the English common law tradition.

It amounts to a kind of “hostile takeover” of someone else’s property, taking it from the original owner without payment. Though often imagined as someone acquiring a large piece of land by underhanded means, in reality adverse possession claims are far more likely to involve a border-line dispute between two neighbors.

A successful adverse possession claim in California must prove all of the following:

Hostile Claim – The occupier (the person without title) must possess the land against the interests of the owner, i.e., without their permission.

Actual Possession – The occupier must be physically present on the property, taking care of it as if they were the owner.

Open and Notorious Possession – The occupier’s possession of the property should be plain for anyone to see, serving as a kind of notice to the owner. What constitutes open and notorious possession will depend on the type of property, but common examples are enclosing it with a fence or constructing buildings.

Exclusive and Continuous Possession – The occupier must be the sole possessor of the property for at least five years, and their possession must be uninterrupted. For example, if the occupier was on the property for four years, then left for six months, and returned, the clock on the five-year period would start over again.

Payment of Taxes – The occupier must pay all state, county, and municipal taxes levied on the property. This serves as another type of notice to the owner. Payment must be made in a timely manner, meaning the occupier can’t simply pay off five years’ worth of taxes all at once.

Resolving an Adverse Possession Case

As stated above, a typical adverse possession case doesn’t involve an intentional scheme to take over someone else’s property, but rather a neighbor encroaching on the border line. Often these situations can be resolved amicably (depending on the neighbor), but other times it’s more complicated, such as when it’s the neighbor’s house that is on the wrong side of line. The parties may be able to negotiate a transfer of title, but sometimes litigation is the only option.

During the five-year period required for an adverse possession claim, the occupier is continually trespassing on the owner’s property. This means the owner can simply file for eviction. Even if the occupier had built some structure on the owner’s land, they would have to remove it.

If the five-period has already passed, either the occupier or the owner can initiate an action to quiet title, in which the court will decide who the rightful owner is. The burden is then on the occupier to prove every element of their adverse possession claim. It’s a difficult case to win, as courts don’t like taking property from the original owner. If the occupier does win, they receive title to the land and have full rights as the new owner.

The Importance of Having a Real Estate Attorney

Adverse possession cases are complex and the stakes are high for the parties involved. No matter which side of the dispute you are on, it is critical to have an attorney with expertise in real estate matters. They will be able to review deeds and other property documents, get an accurate survey of the property boundaries, and properly evaluate the adverse possession claim in light of all the facts.

If you are involved in a real estate dispute such as adverse possession, don’t hesitate to contact our experienced team of Southern California real estate attorneys.