Civil Code section 1962 requires owners of rental property to make certain written disclosures to their tenants including, but not limited to, the name, phone number, and usual street address at which personal service may be effectuated for all people who are managers of the premises, owners, or persons authorized to act on behalf of the owner for the purpose of service. An owner, or the owner’s authorized representative, is required to make the disclosure within 15 days of executing the lease or, if the lease is orally made, within 15 days of the agreement. The information to be disclosed must be kept current such that the required disclosure extends to any successor owner or manager; the successor must comply with the disclosure requirements within 15 days of succeeding the previous owner or manager. A successor owner or manager is precluded from evicting a tenant for failure to pay rent if the tenant’s default occurs during a period of noncompliance with section 1962.

In Group XIII Properties LP v. Stockman, a published decision filed on September 6, 2022, by the Appellate Division of the Los Angeles County Superior Court, notice of transfer to a successor landlord was provided to Stockman. Stockman refused to pay rent to the successor landlord who then served Stockman with notice to quit and filed an unlawful eviction complaint against her when she failed to comply.

Stockman moved for nonsuit and a directed verdict on the basis that the landlord had not complied with Civil Code section 1962 and, therefore, was precluded from evicting her. The trial court found the landlord had substantially complied with Section 1962 through its notices of changes in management and demands, denied her motions, and entered judgment for the landlord. Stockman appealed the judgment.

The Appellate Division reversed the trial court. It concluded substantial compliance with Section 1962 is inadequate. It held successor owners/managers must strictly comply with Section 1962.

If you are a landlord changing property management companies or are acquiring rental property with tenants in place, it is essential that you work with legal counsel to assure all proper notices have been provided under Section 1692. Otherwise, you may be giving away free places for tenants to stay.

The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.