Erlach v. Sierra Asset Servicing, LLC, 226 Cal. App. 4th 1281 (2014)

Citation: Erlach v. Sierra Asset Servicing, LLC, 226 Cal. App. 4th 1281 (2014)
Parent Document: Erlach v. Sierra Asset Servicing, LLC, 226 Cal. App. 4th 1281 (2014)
Jurisdiction: California (state)
Effective Date: 2014-06-10
Original Source: https://www.courtlistener.com/opinion/2677838/erlach-v-sierra-asset-servicing-llc/ ↗

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       After "careful and extensive" examination of the PTFA, this court concluded
"solely as a matter of statutory interpretation, that 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, supra,
at p. 270, italics added.)
       Two final points: In Nativi, supra, at page 287, we concluded that permitting an
immediate successor in interest in a foreclosed property to invoke the general rule that
illegal contracts are unenforceable would allow it to circumvent the PTFA and frustrate
its fundamental public policy purpose. Moreover, "[u]nder Green v. Superior Court,
supra, a residential tenant may not be deemed to have exempted a landlord from the
implied warranty of habitability by continuing to live in uninhabitable premises . . . ."
(Knight, supra, 29 Cal.3d at p. 59.)
                                        Conclusion
       The trial court erred in sustaining Sierra's demurrer without leave to amend.
Accordingly, we will remand this matter to the superior court for further proceedings.

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