7 Legal Risks of Buying Occupied Properties
You’re buying more than bricks—you’re inheriting seven legal risks. (1) Leases that survive the sale can lock in rent terms and repair duties. (2) You may face successor liability for renewals and tenant defaults. (3) Foreclosure rules like the PTFA and California CCP §1161b can extend required notice periods. (4) Just‑cause eviction limits may apply under AB 1482 or local ordinances. (5) Missing estoppels can hurt you—cases like R‑Ranch show how later concessions can get wiped out. (6) Security‑deposit transfer liability and Civil Code §1962 notice requirements can land on you. (7) Slow evictions can crush ROI and tie up cash flow. Skip verification, and you’ll pay twice—often. Stick around for the playbook. Buying Occupied Properties: Leases That Survive the Sale That means the tenant keeps lawful possession for the balance of the lease term. You inherit the rent, maintenance obligations, renewal mechanics, and default remedies exactly as written—unless the lease or a superior legal ...