Abandoned Personal Property After Termination of a Tenancy find the article at:

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1 Home > Legal > Landlord Tenant Folder > Abandoned Personal Property After Termination of a Tenancy Abandoned Personal Property After Termination of a Tenancy find the article at: " Member Legal Services Tel (213) Fax (213) Nov. 27, 2012 (revised) Table of Contents I. Introduction II. Residential Tenancies A. Landlord's Request that Tenant Retrieve Property B. Tenant's Request for Return of Property C. Lost Property III. Commercial Tenancies IV. Abandoned Vehicles V. Additional Information I. Introduction After the termination of a tenancy, a landlord may find items of personal property left on the premises by either a former tenant or other persons. This legal article discusses California law regarding the disposition of abandoned property after the end of a tenancy. II. Residential Tenancies The rules that apply for personal property left behind in a residential tenancy do not apply to manufactured homes or mobilehomes (Cal. Civ. Code 1981). The law governing personal property left behind in a residential tenancy will be changing as of January 1, 2013 as a result of AB2521. The pending changes for are noted in red below. However those changes are only effective starting at the beginning of the year and any issues regarding a tenant s abandoned property that occur before the end of the year are governed by the existing law.

2 A. Landlord's Request that Tenant Retrieve Property Q 1. Upon termination of tenancy, what should a landlord do if a tenant has left behind personal property on the premises? A The law governing personal property left behind in a residential tenancy will be changing as of January 1, 2013 as a result of AB2521. The pending changes for are noted in red below. However those changes are only effective starting at the beginning of the year and any issues regarding a tenant s abandoned property that occur before the end of the year are governed by the existing law. If a tenant has left personal property on the premises at the termination of the tenancy, a landlord must notify the tenant in writing to inform him/her that property left behind should be retrieved or otherwise it will sold or disposed of in accordance with the law (Cal. Civ. Code 1983(a)). Q 2. What must the notice that the landlord will send to the former tenant, or other person, that the landlord believes may have left personal property on the previously rented premises contain? A When a tenant has vacated the premises after termination of the tenancy and personal property has been left behind, a landlord must give a written notice (Notice) to the tenant and any other person the landlord reasonably believes may own the property. The Notice should contain the following items: A description of the property which is sufficiently clear to permit the owner of the property to identify it; The place where the property may be claimed; A statement to the owner that reasonable storage costs may be charged before the property is returned; Effective January 1, 2013 the notice must also state that if the tenant claims the property in a time period of not less than two days after the tenant vacated the premises, the tenant may minimize the costs of storage. (Cal. Civ. Code sections 1983(b), 1984). The date before which the claim must be made. The date given cannot be less than 15 days from the date the Notice is personally delivered, or, if mailed, 18 days from the date the Notice is deposited in the mail. (Cal. Civ. Code 1983(b).) In addition to the items listed above, the Notice should also contain a description of what will happen to the property if it is unclaimed. If the property is believed to be worth $300 or more ( effective January 1, 2013, the amount will be $ or more ), the Notice should include these points: If the owner fails to reclaim the property, it will be sold at a public sale after a Notice of Sale has been given by publication; The owner has the right to bid on the property at the sale; Once the property is sold, the costs of storage, advertising, and sale will be deducted from the sale price and any remaining money will be paid over to the county; and The original property owner may claim the money at any time within one year from the date the county receives the money. (Cal. Civ. Code 1984.) If the property is believed to be worth less than $300 (effective January 1, 2013, the amount will be less than $700.00), the Notice need only state this fact and that the property may be kept, sold, or destroyed without further warning to the owner if it is not claimed within the time period listed in the Notice.

3 Q 3. How should the notice be delivered? A The landlord can deliver the notice to the tenant by personal delivery and mail (or if certain conditions are met after January 1, 2013, ). If sent by mail, the notice must be sent via first-class mail, postage prepaid, to the presumed property owner's last known address. If the landlord believes a former tenant owned the property, then a copy of the Notice must also be sent to the vacated premises. (Cal. Civ. Code 1983(c).) If the landlord has reason to believe the presumed property owner will not receive the Notice at his/her last known address, then the landlord must also send the Notice to all other addresses known by the landlord where the property owner could reasonably be expected to receive the Notice. Other addresses where the property owner might be expected to receive the Notice include a place of business, a post office box, or a relative's home. (Cal. Civ. Code 1983(c).) Finally, beginning January 1, 2013, a landlord may in addition to sending the notice by mail or personal delivery, also send the notice by to the tenant if the tenant has provided the landlord with an address. Q 4. What forms for the Notice satisfy the requirements of the law? A Notice that is given either to the former tenant or to a person other than the former tenant needs to comply substantially with the format of the forms below--the first would go to the tenant and the second to someone other than the tenant if the landlord reasonably believes someone else to be the owner of the personal property (Cal. Civ. Code ). (For Use Until January 1, 2013) FORM OF NOTICE TO TENANT NOTICE OF RIGHT TO RECLAIM ABANDONED PROPERTY To: (Name of former tenant) (Address of former tenant) when you vacated the premises at (Address of premises, including room or apartment number, if any), the following personal property remained: (Insert description of personal property) You may claim this property at (Address where property may be claimed). Unless you pay the reasonable cost of storage for all of the above-described property which you claim, not later than (insert date not less than 15 days after notice is personally delivered or, if mailed, not less than 18 days after notice is deposited in the mail) this property may be disposed of pursuant to Civil Code Section 1988.

4 [If you fail to reclaim the property, it will be sold at a public sale after notice of the sale has been given by publication. You have the right to bid on the property at this sale. After the property is sold and the cost of storage, advertising, and sale is deducted, the remaining money will be paid over to the county. You may claim the remaining money at any time within one year after the county receives the money] OR [Because this property is believed to be worth less than $300, it may be kept, sold, or destroyed without further notice if you fail to reclaim it within the time indicated above.] Dated: (Signature of Landlord) (Type or print name of Landlord) (Telephone number) (Address) (Cal. Civ. Code 1984.) (For Use After January 1, 2013) FORM OF NOTICE TO TENANT NOTICE OF RIGHT TO RECLAIM ABANDONED PROPERTY To: (Name of former tenant) (Address of former tenant) when you vacated the premises at (Address of premises, including room or apartment number, if any), the following personal property remained: (Insert description of personal property) You may claim this property at (Address where property may be claimed). If you claim this property by (insert date not less than 2 days after the former tenant vacated the premises), you may minimize the costs of storage. If you fail to claim this property by (insert date not less than 2 days after the former tenant vacated the premises) unless you pay the reasonable cost of storage for all of the above-described property which you claim, not later than (insert date not less than 15 days after notice is personally delivered

5 or, if mailed, not less than 18 days after notice is deposited in the mail) this property may be disposed of pursuant to Civil Code Section [If you fail to reclaim the property, it will be sold at a public sale after notice of the sale has been given by publication. You have the right to bid on the property at this sale. After the property is sold and the cost of storage, advertising, and sale is deducted, the remaining money will be paid over to the county. You may claim the remaining money at any time within one year after the county receives the money] OR [Because this property is believed to be worth less than $700, it may be kept, sold, or destroyed without further notice if you fail to reclaim it within the time indicated above.] Dated: (Signature of Landlord) (Type or print name of Landlord) (Telephone number) (Address) (Cal. Civ. Code 1984.) (For Use Prior to January 1, 2013) FORM OF NOTICE TO OWNER OTHER THAN TENANT NOTICE OF RIGHT TO RECLAIM ABANDONED PROPERTY To: (Name) (Address) When (name of the former tenant) vacated the premises at (address of premises, including room or apartment number, if any) the following personal property remained: (insert description of the personal property). If you own any of this property, you may claim it at (address where the property may be claimed).

6 Unless you pay the reasonable cost of storage and take possession of the property to which you are entitled not later than (insert date not less than 15 days after notice is personally delivered or, if mailed, not less than 18 days after notice is deposited in the mail) this property may be disposed of pursuant to Civil Code Section Dated: (Signature of Landlord) (Type or print name of Landlord) (Telephone number) (Address) (Cal. Civ. Code 1985.) (For Use After January 1, 2013) FORM OF NOTICE TO OWNER OTHER THAN TENANT NOTICE OF RIGHT TO RECLAIM ABANDONED PROPERTY To: (Name) (Address) When (name of the former tenant) vacated the premises at (address of premises, including room or apartment number, if any) the following personal property remained: (insert description of the personal property). If you own any of this property, you may claim it at (address where the property may be claimed). If you claim this property by (insert date not less than 2 days after the former tenant vacated the premises), you may minimize the costs of storage. If you fail to claim this property by (insert date not less than 2 days after the former tenant vacated the premises) unless you pay the reasonable cost of storage and take possession of the property to which you are entitled not later than (insert date not less than 15 days after notice is personally delivered or, if mailed, not less than 18 days after notice is deposited in the mail) this property may

7 be disposed of pursuant to Civil Code Section Dated: (Signature of Landlord) (Type or print name of Landlord) (Telephone number) (Address) (Cal. Civ. Code 1985.) Q 5. Where should a landlord keep the abandoned property pending either retrieval of the property by a tenant or a sale of the property? A The personal property which the landlord has described in the Notice must either be left on the vacated premises or stored by the landlord in a safe place until the landlord either releases the property to the tenant or rightful owner or disposes of the property at a public sale (Cal. Civ. Code 1986). Q 6. Is a landlord liable to a tenant or any other rightful owner of the property if the property is lost, destroyed, or stolen while it is in storage? A As long as the landlord exercises reasonable care in storing the property, the landlord will not be liable to the tenant or any other rightful owner. However, a landlord will be liable for losses caused by his/her deliberate or negligent acts. (Cal. Civ. Code 1986.) Q 7. What happens when someone appears at the designated location to take possession of the property? A A landlord may release the property to a former tenant or to any other person the landlord reasonably believes to be the owner of the property as long as the tenant or other owner pays the reasonable storage fees and takes possession of the property prior to the date specified in the written Notice (Cal. Civ. Code 1987(a)). Q 8. What if the date, specified in the Notice, by which a presumed owner must claim the property has elapsed, but he or she still contacts a landlord in order to reclaim the property? A As long as the Notice received by the presumed owner stated that the property would be sold at a public sale, the owner may claim the property at any time prior to the sale. The owner must pay the landlord the reasonable cost of storage, advertisement, and sale incurred prior to the item's

8 withdrawal from sale. The landlord must then release the property to its owner. (Cal. Civ. Code 1987(b).) Q 9. If a landlord releases the property to a former tenant who the landlord believes is the rightful owner, could the release expose the landlord to liability from other persons? A When the landlord releases property to a former tenant, the landlord is not liable to any other persons (Cal. Civ. Code 1989(a)). Q 10. If a landlord releases the property to someone other than a former tenant, is the landlord liable to someone else who may claim ownership of the property? A As long as the landlord releases the property to a person whom the landlord reasonably believes is the owner, then the landlord is not liable to any other person to whom the Notice of abandoned property might have been sent. The landlord is also not liable to any person not in receipt of the Notice unless that person can prove that prior to releasing the item the landlord believed or should have believed this person had an interest in the property and the landlord knew or should have known upon reasonable investigation the address of this person. These rules also apply after the sale of property. (Cal. Civ. Code 1989(b)(1-2).) Q 11. What are the storage costs which a landlord may recover from a property owner who claims the abandoned items? A If the property owner claims the property by the date specified in the Notice or any time prior to the sale of the property, the landlord may charge all the reasonable costs of storage incurred which remain unpaid from the time of the termination of tenancy to the time the property is claimed (Cal. Civ. Code 1990(a)(1). (Effective January 1, 2013 a landlord may not charge storagecosts if the former tenant or other property owner reclaims property stored on the premises within two days of the tenant vacating the premises.)if the person claiming the property is not a former tenant, the landlord may only charge this person reasonable costs of storage for the item that person is claiming (Cal. Civ. Code 1990(a)(2)). The landlord may never charge more than one person who claims the property for the same storage costs (Cal. Civ. Code 1990(b)). Q 12. Can the landlord charge the property owner a storage fee for storing the abandoned item on the rental premises? A When the landlord stores the abandoned item on the rental premises, he/she may charge the party who claims the item the fair rental value of the space reasonably required to store the item for the term of the storage (Cal. Civ. Code 1990(c)). Q 13. If no one comes to claim the property, how should the property be sold? A As mentioned above, if a landlord reasonably believes that the value of the abandoned item(s) is less than $300 ($700 effective January 1, 2013), the landlord may keep the property or dispose of it in any manner (Cal. Civ. Code 1988(a)). If, on the other hand, the property has a value of $300 ($700 effective January 1, 2013) or more, the landlord must sell the item(s) at a public sale by

9 competitive bidding (Cal. Civ. Code 1988(a)). Q 14. How does a landlord conduct a public sale? A First, the landlord must wait until the date to claim property given in the Notice has elapsed (Cal. Civ. Code 1988(a)). Then, notice of the time and place of the public sale must be given in a newspaper of general circulation in the county where the sale is to be held (Notice of Sale). The Notice of Sale must appear in the paper once a week for two weeks. The date of the last publication must be at least five days before the auction is held. The Notice of Sale should not be published before the last of the dates specified for taking possession of the property in the Notice. (Cal. Civ. Code 1988(b).) Q 15. In addition to giving the time and the place of the sale, what else should a Notice of Sale include? A The Notice of Sale should describe the property to be sold in a manner reasonably adequate to allow the rightful owner to identify it. It is important to note that the landlord's protection from liability does not extend to the disposition of any property which has not been described in the Notice of Sale. (Cal. Civ. Code 1988(b).) Q 16. If the item for sale is a locked trunk, is a landlord expected to open the trunk and describe the contents in the Notice of Sale? A If the item for sale is a trunk, box, or other container which is locked, fastened, or tied in a manner that does not permit immediate access to its contents, the landlord may describe the container without describing its contents. The landlord will not be exposed to liability in such a situation. (Cal. Civ. Code 1988(b).) Q 17. After the sale, does a landlord get to keep all the sale proceeds? A No. From the proceeds the landlord may deduct the expenses for storage, advertising, and sale. The balance, if not claimed by a former tenant or property owner, must be paid into the treasury of the county in which the sale took place not more than 30 days after the sale. The landlord should contact the county treasury department to determine how sale proceeds should be paid to the treasurer. (Cal. Civ. Code 1988(c).) Q 18. If a former tenant or other property owner contacts a landlord after the sale to recover the sale price of the item, what should the landlord do? A The landlord may refer the property owner to the county treasurer. The property owner has one year from the date of sale in which to make a claim to the treasurer for the balance of the sale proceeds by making application to the county treasurer or other official designated by the county. (Cal. Civ. Code 1988(c).) B. Tenant's Request for Return of Property

10 Q 19. May a residential landlord refuse to return a former tenant's personal property left on the rental premises after the end of the tenancy? A A residential landlord may not refuse to return items which a former tenant has left on the premises when the tenancy ends if the tenant requests the items under the following conditions: The tenant makes a written demand which includes a description of the personal property and the tenant's mailing address within 18 days of the end of the tenancy; The landlord or his/her agent has control or possession of the item at the time the request is received; The tenant, in response to the landlord's written request, pays the landlord's reasonable storage costs for the item prior to the landlord returning the item (Effective January 1, 2013 a landlord may not charge storage costs if the former tenant or other property owner reclaims property stored on the premises within two days of the tenant vacating the premises.); and, The tenant agrees to claim and remove the item at a reasonable time agreeable to the landlord but no later than 72 hours after the tenant pays the storage and removal fees. (Cal. Civ. Code 1965(a) (1-4).) Q 20. What should a landlord's written request for storage fees include? A The written storage fee request should include an itemized list of all reasonable storage and removal costs and the nature and amount of each fee ( Cal. Civ. Code 1965(a)(3)). Reasonable costs for removal of property are those actually incurred in removing the personal property to a storage area, including disassembly and transportation. Reasonable costs for storage should not exceed the fair rental value of the space reasonably required to store the item. (Cal. Civ. Code 1965(b)(1).) (Effective January 1, 2013, a landlord may not charge any storage fees if the tenant or property owner collects the personal property within two days after the tenant vacated the property). Q 21. When and how should the storage fee request be submitted to a former tenant who requests an item left on the premises? A The list should be personally delivered to the tenant or his/her representative or mailed to the address the tenant gives in his/her demand within five days of the landlord's receipt of the demand, unless the landlord has already returned the item ( Cal. Civ. Code 1965(a)(3)). Q 22. If a landlord disposes of personal property pursuant to a tenant's proper request, is a landlord liable to another person requesting the same item? A No. If the procedures outlined in Question 19 are followed, the landlord is not liable to another person claiming the property. If there are conflicting demands for the item, the item goes to the person who made the first demand. (Cal. Civ. Code 1965(d).) Q 23. What can happen if a landlord keeps personal property after a tenant's proper request?

11 A A landlord may be liable for actual damages not exceeding the value of the personal property if he/she does not surrender the item by the later of the following: Within a reasonable time after the tenant's demand for surrender or After the tenant has paid the storage fees and attempted to retrieve the property within 72 hours thereafter. (Cal. Civ. Code 1965(e)(1-2).) In addition, a landlord may be charged up to $250 for each bad faith violation of the rules for surrendering property, as well as the tenant's court costs and reasonable attorney's fees (Cal. Civ. Code 1965(e)(2)). C. Lost Property Q 24. If a landlord suspects the property remaining does not belong to a former tenant, but might have been lost on the premises, what should the landlord do? A If the landlord suspects the property found on the premises was lost rather than left behind by a former tenant or other owner, the item must be treated as lost or unclaimed property. The landlord is not bound to take care of the item, but if choosing to do so must inform the owner (if known) within a reasonable time, and return the item to the owner. The landlord may not charge a fee for returning the item other than a reasonable charge for taking care of the property. (Cal. Civ. Code 1982(a).) In the event the owner is unknown or does not claim the property and the property has a value of $100 or more, the landlord must turn the property over to the local police or sheriff's department within a reasonable time after finding the property. The landlord must then fill out a report stating where and how the property was saved, whether or not he/she knows the owner and that the landlord has not hidden, withheld, or disposed of any part of the property. The police or sheriff's department must notify the owner, if known, that it possesses the property and where it may be claimed. In addition, a charge may be levied to defray costs of storage and care of the property. (Cal. Civ. Code (a)(b).) Q 25. What if a police or sheriff's department will not accept the property from a landlord? A If the police or sheriff's department refuses to accept the property, the landlord must dispose of the property as if it was abandoned on the landlord's premises by the former tenant or other owner (Cal. Civ. Code 1992(b)). III. Commercial Tenancies A new law, AB 2025, effective January 1, 2009, covers the issue of disposition of personal property upon termination of a tenancy in commercial real property. The laws governing disposition of property remaining after termination of a commercial tenancy do not apply to disposition of manufactured homes, mobilehomes, or any commercial coach (including contents) left on commercial property nor to disposition of animals. Nor do they apply to residential property or self-storage units. (Cal. Civ. Code (c)(d) and (e).)

12 Furthermore, this law does not apply to property left in a licensed hospital (Section ), or left at the University of California or a police department (Section ), or left with the trustees of a state university (Section ), or any goods, merchandise, or other property received by any railroad or express company, other common carrier, commission merchant, innkeeper, or warehouseman, for transportation or safekeeping (Section 2081). Finally, this law does not apply to property that exists for the purpose of providing utility services owned by a public utility. (Cal. Civ. Code (b).) For a detailed definition of "commercial property" see Civil Code Section (d) (Cal. Civ. Code 1993(a)). Q 26. Upon termination of tenancy, what should a commercial landlord do if a tenant has left behind personal property on the premises? A If personal property remains on the premises after the termination of a tenancy and the premises have been vacated by the tenant, the landlord must give a written notice to the tenant and to any other person the landlord reasonably believes to be the owner of the personal property (Cal. Civ. Code (a)). Note that the term tenant includes any lessee or sublessee (Cal. Civ. Code 1993(f)). Q 27. How should a commercial landlord notify a former tenant, or other person, that the landlord believes may have left property on the previously rented premises? A When a tenant has vacated the premises after termination of the tenancy and personal property has been left behind, a landlord must give a written notice (Notice) to the tenant and any other person the landlord reasonably believes may own the property. The Notice should contain the following items: A description of the property which is sufficiently clear to permit the owner of the property to identify it; The place where the property may be claimed; A statement to the owner that reasonable storage costs may be charged before the property is returned; The date before which the claim must be made. The date given cannot be less than 15 days from the date the Notice is personally delivered, or, if mailed, 18 days from the date the Notice is deposited in the mail. (Cal. Civ. Code (b).) In addition to the items listed above, the Notice should also contain a description of what will happen to the property if it is unclaimed depending on the value of the property: If the property is reasonably believed to be worth more, it must be sold at a public sale by competitive bidding (Cal. Civ. Code (a)). In addition, the Notice should also include these points: If the owner fails to reclaim the property, it will be sold at a public sale after a Notice of Sale has been given by publication; The owner has the right to bid on the property at the sale; Once the property is sold, the costs of storage, advertising, and sale will be deducted from the sale price and any remaining money will be paid over to the county; and

13 The original property owner may claim the money at any time within one year from the date the county receives the money. If the property is believed to be worth less than the lessor of $750 or one dollar ($1) per square foot of the premises occupied, the lessor may keep, sell or destroy the personal property without any further notice. (Cal. Civ. Code (b).) Q 28. What forms for the Notice satisfy the requirements of the law? A Civil Code Section (b) describes the contents of the Notice; however a Notice may be given to the former tenant that is in substantially the following form (Cal. Civ. Code (a)): FORM OF NOTICE TO TENANT NOTICE OF RIGHT TO RECLAIM ABANDONED PROPERTY To: (Name of Former tenant) (Address of former tenant) When you vacated the premises at, (Address of premises, including room, if any) the following personal property remained: (Insert description of the personal property) You may claim this property at. (Address where property may be claimed) Unless you pay the reasonable cost of storage for all the above-described property, and take possession of the property which you claim, not later than (insert date not less than 15 days after notice is personally delivered or, if mailed, not less than 18 days after notice is deposited in the mail) this property may be disposed of pursuant to Civil Code Section [Insert here (1) OR (2) whichever applies] (1) "If you fail to reclaim the property, it will be sold at a public sale after notice of the sale has been given by publication. You have the right to bid on the property at this sale. After the property is sold and the cost of storage, advertising, and sale is deducted, the remaining money will be paid over to the county. You may claim the remaining money at any time within one year after the county receives the money." OR (2) "Because you were a commercial tenant and this property is believed to be worth less than the lesser of $750 or one dollar ($1) per square foot of the premises you occupied, it may be kept, sold, or destroyed without further notice if you fail to reclaim it within the time indicated above." Dated: (Signature of landlord) (Type or print name of landlord)

14 (Telephone number) (Address) A Notice in substantially the following form should be given to a person other than the former tenant the landlord reasonable believes to be the owner of the personal property (Cal. Civ. Code ): FORM OF NOTICE TO OWNER OTHER THAN TENANT NOTICE OF RIGHT TO RECLAIM ABANDONED PROPERTY To: (Name) (Address) When vacated (Name of former tenant) the premises at, (Address of premises, including room, if any) the following personal property remained: (Insert description of the personal property) You may claim this property at. (Address where property may be claimed) Unless you pay the reasonable cost of storage for all the above-described property, and take possession of the property that you claim, not later than (insert date not less than 15 days after notice is personally delivered or, if mailed, not less than 18 days after notice is deposited in the mail) this property may be disposed of pursuant to Civil Code Section [Insert here either (1) or (2) whichever applies] (1) "If you fail to reclaim the property, it will be sold at a public sale after notice of the sale has been given by publication. You have the right to bid on the property at this sale. After the property is sold and the cost of storage, advertising, and sale is deducted, the remaining money will be paid over to the county. You may claim the remaining money at any time within one year after the county receives the money." OR (2) "Because you were a commercial tenant and this property is believed to be worth less than the lesser of $750 or one dollar ($1) per square foot of the premises you occupied, it may be kept, sold, or destroyed without further notice if you fail to reclaim it within the time indicated above." Dated: (Signature of landlord) (Type or print name of landlord) (Telephone number)

15 (Address) Q 29. How should the Notice be delivered to the tenant, subtenant or other owner of the personal property? A The Notice must be personally delivered to the person to be notified or sent by first-class mail, postage prepaid, to the person to be notified at his or her last known address and, if there is reason to believe that the notice sent to that address will not be received by that person, also to any other address known to the landlord where the person may reasonably be expected to receive the notice. If the Notice is sent by mail to the former tenant, another copy must be mailed to the premises vacated by the tenant. (Cal. Civ. Code (c).) Q 30. Where should a commercial landlord keep the abandoned property pending either retrieval of the property by a tenant (or other owner) or a sale of the property? A The personal property described in the Notice must either be left on the vacated premises or stored by the landlord in a place of safekeeping until the landlord either releases the property or disposes of the property. The landlord must exercise reasonable care in storing the personal property, but he or she is not liable to the tenant or any other owner for any loss except for the landlord s deliberate or negligent act. (Cal. Civ. Code ) Q 31. What happens when someone appears at the designated location to take possession of the property? A A landlord may release the property to a former tenant or to any other person the landlord reasonably believes to be the owner of the property as long as the tenant or other owner pays the reasonable storage fees and takes possession of the property prior to the date specified in the written Notice (Cal. Civ. Code (a)(1) and 1987(a)). Q 32. If a commercial landlord releases the property to a former tenant who the landlord believes is the rightful owner, could the release expose the landlord to liability from other persons? A When the landlord releases property to a former tenant, the landlord is not liable to any other persons (Cal. Civ. Code (a)). Important: The Notice may describe all or a portion of the property, but the limitation of liability does not protect the landlord from any liability arising from the disposition of property not described in the Notice, except that a trunk, valise, box, safe, vault, or other container that is locked, fastened, or tied in a manner that deters immediate access to its contents may be described as such without describing its contents (Cal. Civ. Code (b)).

16 Q 33. If a commercial landlord releases the property to someone other than a former tenant, is the landlord liable to someone else who may claim ownership of the property? A As long as the landlord releases the property to a person whom the landlord reasonably believes is the owner, then the landlord is not liable to any other person to whom the Notice of abandoned property might have been sent. The landlord is also not liable to any person not in receipt of the Notice unless that person can prove that prior to releasing the item the landlord believed or should have believed this person had an interest in the property and the landlord knew or should have known upon reasonable investigation the address of this person. These rules also apply after the sale of property. (Cal. Civ. Code (b) and (c).) Important: The Notice may describe all or a portion of the property, but the limitation of liability does not protect the landlord from any liability arising from the disposition of property not described in the Notice, except that a trunk, valise, box, safe, vault, or other container that is locked, fastened, or tied in a manner that deters immediate access to its contents may be described as such without describing its contents (Cal. Civ. Code (b)). Q 34. Does the law define the term reasonable belief used in many of the questions in this article? A Yes. " Reasonable belief means the actual knowledge or belief a prudent person would have without making an investigation, including any investigation of public records, except that, if the landlord has specific information indicating that an investigation would more probably than not reveal pertinent information and the cost of an investigation would be reasonable in relation to the probable value of the property involved, "reasonable belief" includes the actual knowledge or belief a prudent person would have if an investigation were made. (Cal. Civ. Code 1993(e).) Q 35. If no one comes to claim the property, how should the property be disposed? A The commercial landlord must do the following: The personal property must be sold at a public sale by competitive bidding unless the landlord reasonably believes that the total resale value of the property not released is less than the lessor of $750 or $1 per square foot of the premises occupied by the tenant (Cal. Civ. Code (a).) Notice of the time and place of the public sale must be published as described in Section 6066 of the Government Code in a newspaper of general circulation in the county where the sale is to be held (Cal. Civ. Code (b)). The last publication cannot be not less than five days before the sale is to be held (Cal. Civ. Code (b)). The notice of the sale must not be published before the last of the dates specified for taking possession of the property in the notices in Question 27 (Cal. Civ. Code (b)). The notice of the sale must describe the property to be sold in a manner reasonably adequate to permit the owner of the property to identify it (Cal. Civ. Code (b)). The notice of the sale may describe all or a portion of the property, but the limitation of liability described in Questions 32 and 33 does not protect the landlord from any liability arising from the disposition of property not described in the notice, except that a trunk, valise, box, safe, vault, or other container that is locked, fastened, or tied in a manner that deters immediate access to its

17 contents may be described as such without describing its contents (Cal. Civ. Code (b)). Q 36. After the sale, does the commercial landlord get to keep all the sale proceeds? A No. From the proceeds the landlord may deduct the expenses for storage, advertising, and sale. The balance, if not claimed by a former tenant or property owner, must be paid into the treasury of the county in which the sale took place not later than 30 days after the sale. The landlord should contact the county treasury department to determine how sale proceeds should be paid to the treasurer. (Cal. Civ. Code (c).) Q 37. If the commercial landlord believes that the tenant has both abandoned the premises and left personal property behind, what should the landlord do? A The landlord may give both a Notice of Belief of Abandonment (described in Civil Code Section ) and the Notice of Right to Reclaim Abandoned Property described in Question 27 at the same time even though the tenancy is not terminated until the end of the period specified in the Notice of Belief of Abandonment. (Cal. Civ. Code ) See the Legal Q&A Abandoned Rental Property for a sample Notice of Belief of Abandonment. IV. Abandoned Vehicles Q 38. Who is responsible for an automobile abandoned on private property? A Any person who abandons a vehicle on private property is liable for the cost of removal and disposition of the vehicle. No one may abandon a vehicle upon private property without the permission of the real property owner. (Cal. Veh. Code ) Q 39. Under what circumstances may a real property owner have a vehicle removed from the premises? A If any one of the following conditions is satisfied: 1. There is displayed, in plain view at all entrances to the property, a sign not less than 17 inches by 22 inches in size, with lettering not less than one inch in height, prohibiting public parking and indicating that vehicles will be removed at the owner's expense, and containing the telephone number of the local traffic law enforcement agency and the name and telephone number of each towing company that is party to a written general towing authorization agreement with the owner or person in lawful possession of the property (e.g., tenant). The sign may also indicate that a citation may also be issued for the violation. 2. The vehicle has been issued a notice of parking violation, and 96 hours have elapsed since the issuance of that notice. 3. The vehicle is on private property and lacks an engine, transmission, wheels, tires, doors, windshield, or any other major part or equipment necessary to operate safely on the highways, the owner or person in lawful possession of the private property has notified the local traffic law enforcement agency, and 24 hours have elapsed since that notification. 4. The lot or parcel upon which the vehicle is parked is improved with a single-family dwelling.

18 (Cal. Veh. Code 22658(a)(1-4).) As mentioned above, the vehicle owner is liable for the vehicle's storage and towing fees. Real property owners should also check local ordinances which may give additional procedures for removing abandoned vehicles from the premises. Q 40. How does a real property owner notify a vehicle owner that the vehicle was removed from the premises? A It is the responsibility of the tow truck operator who removed the vehicle. If the tow truck operator knows or is able to ascertain from the property owner, person in lawful possession of the property, or the registration records of the Department of Motor Vehicles, the name and address of the registered and legal owner of the vehicle, the operator must immediately give notice in writing to the registered and legal owner of the fact of the removal, the grounds for the removal, and indicate the place to which the vehicle has been removed. If the vehicle is stored in a storage facility, a copy of the notice must be given to the proprietor of the storage facility. The notice must include the amount of mileage on the vehicle at the time of removal and the time of the removal from the property. If the tow truck operator does not know and is not able to ascertain the name of the owner or for any other reason is unable to give the notice to the owner as provided in this section, the tow truck operator must comply with the requirements of subdivision (c) of Section relating to notice in the same manner as applicable to an officer removing a vehicle from private property. (Cal. Veh. Code 22658(b).) Q 41. What is the procedure for vehicle removal from a common interest development? A An association of a common interest development may follow the exact same procedure as for another real property owner (Cal. Veh. Code 22658(a)). See Question 39 for the procedure. V. Additional Information Q 42. Where can I obtain additional information? A This legal article is just one of the many legal publications and services offered by C.A.R. to its members. For a complete listing of C.A.R.'s legal products and services, please visit car.org. Readers who require specific advice should consult an attorney. C.A.R. members requiring legal assistance may contact C.A.R.'s Member Legal Hotline at (213) , Monday through Friday, 9 a.m. to 6 p.m. and Saturday, 10 a.m. to 2 p.m. C.A.R. members who are broker-owners, office managers, or Designated REALTORS may contact the Member Legal Hotline at (213) to receive expedited service. Members may also submit online requests to speak with an attorney on the Member Legal Hotline by going to Written correspondence should be addressed to: CALIFORNIA ASSOCIATION OF REALTORS

19 Member Legal Services 525 South Virgil Avenue Los Angeles, CA The information contained herein is believed accurate as of November 27, It is intended to provide general answers to general questions and is not intended as a substitute for individual legal advice. Advice in specific situations may differ depending upon a wide variety of factors. Therefore, readers with specific legal questions should seek the advice of an attorney. Revised by Sanjay Wagle. Copyright 2012 CALIFORNIA ASSOCIATION OF REALTORS (C.A.R.). Permission is granted to C.A.R. members only to reprint and use this material for non-commercial purposes provided credit is given to the C.A.R. Legal Department. Other reproduction or use is strictly prohibited without the express written permission of the C.A.R. Legal Department. All rights reserved. Terms and Conditions Privacy Policy Permission to Reprint Site Map Copyright 2013 CALIFORNIA ASSOCIATION OF REALTORS