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In California, a Health and Safety Receivership is an effective option to resolve code enforcement issues with residential and commercial properties. Health and Safety Receiverships commonly deal with substandard or abandoned properties when property owners fail to comply with code enforcement or when there is a threat to the health and safety of residents or the surrounding community. While receivership may not initially sound like a resource for illegally-operating marijuana facilities, the illegal sale of marijuana likely constitutes a nuisance pursuant to the California health and safety code and can be a threat to the health and safety of the surrounding community and/or businesses. The Receivership Remedy can resolve complex issues that arise with rogue marijuana dispensaries as dispensaries become more and more common and the industry continues to inflate.

The partition remedy in California addresses disputes between co-owners of property. Any person with an interest in real property in California may bring a partition action against a co-owner. The partition remedy is necessary when co-owners cannot decide how to handle jointly-owned property. Properties subject to partition include, but are not limited to, single-family residences, vacation homes, investment properties, commercial buildings, apartment buildings, and parcels of land.

Many times, a property under the control of a health and safety code receiver is occupied by tenants. The substandard condition of the property may not be the fault of the property tenants. This situation commonly arises when the property owner/landlord is non-responsive and failing to maintain the property in a safe and habitable condition. Health and safety receiverships arise often in the context of rental properties (single-family homes or apartment buildings).

Section 2938 of the California Civil Code requires commercial tenants to pay their rent to the creditor of their landlord when a landlord defaults on its obligations to its creditor under certain circumstances. The general principle is that if a landlord defaults under an obligation to the creditor, the creditor can compel the tenant to make rental payments directly to it.

Legal disputes stemming from residential real estate transactions are on the rise, largely due to the increase in short sales and foreclosures. In regards to short sales, some sellers are taking legal action against their own real estate agents, alleging that they misrepresented or failed to disclose the possible loan deficiency amount owed to a lender (usually a “2nd”) and/or tax obligations.