CA SB 1079

An “Eligible Bidder” may submit a bid to a trustee to buy a foreclosed property 45 days after the trustee’s sale. Except as discussed below, an Eligible Bidder must submit a bid that exceeds the last and highest bid at the trustee’s sale.

An Eligible Bidder includes:

1.  An “Eligible Tenant Buyer,” who is a natural person who:
   • At the time of the trustee’s sale occupies the property as the person’s primary residence,
   • At the time of the trustee’s sale has an arm’s length lease agreement with the Borrower that is dated before
     the Notice of Default was recorded, and
   • Is not the Borrower or the Borrower’s family member.
2. A “Prospective Owner-Occupant,” who is a natural person who gives an affidavit to the trustee stating that the person:
   • Will occupy the Property as the person’s primary residence within 60 days after the trustee’s deed is recorded,
   • Will live in the Property for at least one year,
   • Is not the Borrower or the Borrower’s family member, and
   • Is not acting as the agent of any other person or entity in buying the property
3. A nonprofft in which an Eligible Tenant Buyer or a Prospective Owner-Occupant is a voting member or director.
4. An eligible California nonprofft corporation whose primary activity is the development and preservation of affordable rental
   housing.
5. A limited partnership or limited liability company in which the managing general partner or managing member is an eligible
   California nonprofft corporation whose primary activity is the development and preservation of affordable housing.
6. A community land trust.
7. A limited-equity housing cooperative.
8. The State of California, the Regents of the University of California, a county, city, district, public authority, or public agency, and any other political subdivision or public corporation in California.

Yes. A person must give an affidavit to the trustee that identifies in which category of Eligible Bidder the person belongs and states that the person meets the criteria for that category.

The trustee may reasonably rely on this affidavit.

An Eligible Bidder must send a written notice of intent to place a bid so that the trustee receives it no more than 15 days after the trustee’s sale.

The bid must be received by the trustee no later than 5:00 p.m. on the 45th day after the trustee’s sale.

The bid must be received by the trustee no later than 5:00 p.m. on the 45th day after the trustee’s sale.

The trustee’s sale will be considered to be final upon payment of the purchase price.

The Prospective Owner-Occupant must submit an affidavit to the trustee that states that the person is a Prospective OwnerOccupant” and meets the criteria for a Prospective Owner-Occupant. The trustee may reasonably rely upon this affidavit.

1. Trustee Must Post Information About the Trustee’s Sale Through a Website and Telephone Number
   A trustee must maintain an internet website and telephone number to make the following information available. The
   website and telephone number must be shown on the Notice of Sale and must be free of charge and available 24 hours a
   day, seven days a week.

   Within 48 hours after a trustee’s sale, a trustee must make the following information available through the website and
   telephone number for a period of 45 days following the trustee’s sale:

   • The date when the Trustee’s sale took place 
   • The amount of the last and highest bid at the trustee’s sale, and
   • An address where the trustee can receive documents sent by mail or overnight delivery.
   • The information above must use the file number that is assigned to the case on the Notice of Sale. 
2. New Tenant Notice Must Be Included on the Notice of Sale.
   The Notice of Sale must include the following new notice to tenants.
   
   NOTICE TO TENANT: You may have a right to purchase this property after the trustee auction pursuant to Section 2924m of the California Civil Code. If you are an “eligible tenant buyer” you can purchase the property if you match the last and highest bid placed at the trustee auction. If you are an “eligible bidder,” you may be able to purchase the property if you exceed the last and highest bid placed at the trustee auction. There are three steps to exercising this right of purchase. First, 48 hours after the date of the trustee sale, you can call [telephone number for information regarding the trustee’s sale], or visit this internet website [internet website address for information regarding the sale of this property], using the file number assigned to this case [case file number] to find the date on which the trustee’s sale was held, the amount of the last and highest bid, and the address of the trustee. Second, you must send a written notice of intent to place a bid so that the trustee receives it no more than 15 days after the trustee’s sale. Third, you must submit a bid so that the trustee receives it no more than 45 days after the trustee’s sale. If you think you may qualify as an “eligible tenant buyer” or “eligible bidder,” you should consider contacting an attorney or appropriate real estate professional immediately for advice regarding this potential right to purchase.
           

Yes. Nothing in SB 1079 relieves a person who is the legal owner of real property when a trustee’s deed is recorded from complying with applicable law relating to the eviction of tenants, including:

• notice requirements,
• requirements for the provision of temporary or permanent relocation assistance,
• the right to return, and
• just cause eviction requirements