Court Holds That a Purchaser of Real Property at a Foreclosure Sale is Not Required
to Record Its Title Prior to Serving Occupants With a Notice to Quit
In Dr. Leevil, LLC v. Westlake Health Care Center, a California appellate court held that a purchaser of real property at a foreclosure sale is not required to record title prior to serving occupants with a notice to quit. In Dr. Leevil, the owners of certain commercial property defaulted on their loan secured by a deed of trust. The lender initiated foreclosure proceedings. Plaintiff purchased the property at a trustee sale. The day after it purchased the facility, plaintiff served defendant with a three day notice to quit. Plaintiff then recorded title to the property five (5) days later. When defendant failed to vacate, plaintiff sued for unlawful detainer. The defendant opposed arguing that the notice to quit was invalid, because it was served before plaintiff recorded title to the property. The trial court disagreed finding that the notice to quit was valid. Defendant then agreed to surrender possession and pay damages. However, defendant appealed the decision.
The court of appeal affirmed holding that the clear language of the statute does not require a new owner to record title prior to serving a notice to quit. The court held that the law does not require that the title be perfected prior to service of a three day notice
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