Lease Survives Foreclosure.

Plaintiffs had rented space in a converted garage unit for several years when the residential property was foreclosed upon by a bank. The trial court granted the bank’s motion for summary judgment based on its determination the foreclosure sale extinguished plaintiff’s lease. Citing the Protecting Tenants Against Foreclosure Act of 2009 [PTFA; Pub.L. 111-22, Div. A, Title VII, §§702-704, the appellate court reversed, stating: “The PTFA causes a bona fide lease for a term to survive foreclosure through the end of the lease term subject to the limited authority of the immediate successor in interest to terminate the lease, with proper notice, upon sale to a purchaser who intends to occupy the unit as a primary residence. The Act impliedly overrides state laws that provide less protection, but, expressly allows states to retain the authority to enact greater protections. Bona fide tenancies for a term that continue by operation of the PTFA remain protected by California law.” (Nativi v. Deutsche Bank National Trust Company  (Cal. App. Sixth Dist.; January 23, 2014) 223 Cal.App.4th 261, [167 Cal.Rptr.3d 173].)