Reverse mortgage

[FAngel]

Jurisdiction

California

I rent 2 rooms in my landlords 3 bedroom home.one is for my mother and the other for myself and he has the master bedroom.we here lived here for over 4yrs now there is nothing in writing with exception of some recent text messaging conversations.wepay the rent by the 3rd every month no receipt ever given. My question is this if you have a reverse mortgage are you allowed to rent out rooms in the house and just keep the profit.

 

[army judge]

if you have a reverse mortgage are you allowed to rent out rooms in the house and just keep the profit.

YES, because a certain landlord is clever enough to rent to two people who pay in CA$H and don't request receipts.

Your landlord is a master of this particular deception.

One more for clever people!

 

[KatDini]

It would depend on the contract the home-owner has with the reverse mortgage lender.

 

[Tax Counsel]

My question is this if you have a reverse mortgage are you allowed to rent out rooms in the house and just keep the profit.

What does having a reverse mortgage on the place have to do with it? An owner of property may legally rent part or all of that property out except to the extent local zoning and or other ordinances restrict the use of the property for rental activity.

It may be that a homeowner's association (HOA) covenant or rules or that something in the mortgage contract itself limits the ability to rent out space in the home, but those are contract matters between the owner and the HOA or the lender.

If you are hoping that somehow you can continue to live there rent free because the owner has a reverse mortgage you'll be disappointed.

 

[FAngel]

It would depend on the contract the home-owner has with the reverse mortgage lender.

If I remember correctly he is not allowed to sublet which why we agreed to cash payments and have no paper trail.

 

[FAngel]

What does having a reverse mortgage on the place have to do with it? An owner of property may legally rent part or all of that property out except to the extent local zoning and or other ordinances restrict the use of the property for rental activity.

It may be that a homeowner's association (HOA) covenant or rules or that something in the mortgage contract itself limits the ability to rent out space in the home, but those are contract matters between the owner and the HOA or the lender.

If you are hoping that somehow you can continue to live there rent free because the owner has a reverse mortgage you'll be disappointed.

I am not trying to live here rent free. I am simply trying to learn what my rights are since all agreements have been verbal and no receipts. is it just his word against mine? We have had some disagreements recently and he has treated me unfairly and if things get ugly I need to know what I can use as leverage. If you know what I mean.

 

[zddoodah]

If I remember correctly he is not allowed to sublet

Sublet? Are you renting from the owner of the home or from someone who is, himself, renting from the owner? If your landlord is not the owner, then the existence of a reverse mortgage is irrelevant to anything. A restriction on subleasing would be something completely different.

I am simply trying to learn what my rights are since all agreements have been verbal and no receipts.

Your rights have nothing to do with the existence of any reverse mortgage, and your question in your original post were not apparently designed to ascertain your rights. In any event, your rights are found in the California Civil Code, and your ability to protect your rights would be enhanced by having a written lease or sublease.

 

[army judge]

I am not trying to live here rent free. I am simply trying to learn what my rights are since all agreements have been verbal and no receipts. is it just his word against mine?

No, you are covered by state statute as a month to month tenant.

Read on dear poster:

California Laws on Month-to-Month Tenancy


California Notice Requirements to Terminate a Month-to-Month Tenancy

 

[Tax Counsel]

I am not trying to live here rent free. I am simply trying to learn what my rights are since all agreements have been verbal and no receipts. is it just his word against mine?

A couple of things here. First, if your concern is about being kicked out, as you are evidently just a month to month tenant then in most places in California (those without any rent control ordinances) he can terminate your tenancy at any time for pretty much any reason by first giving you the required notice. In most cases where the tenant has lived in the leased space at least a year California law requires the landlord to give you 60 days notice to vacate. If you don't get out by the end of the 60 days the landlord can then go to court to evict you.

As to disputes over exactly what the terms of your rental arrangement were, if you go to court it may end up being just your word against his. You apparently do not have any written lease agreement, no rent reciepts, and I gather you have nothing else in writing about this arrangement. Unless you have witnesses to what was said between you and the landlord it would then just come down to what you and the landlord say happened. This is one of the big reasons why you want to get written lease agreements.

If I remember correctly he is not allowed to sublet which why we agreed to cash payments and have no paper trail.

Then you set yourself up in a position where it will be hard to prove what the arrangement is, hard to prove you have paid any rent, etc. That was not in your best interests to do. Next time a landlord wants to go down that path, insist on getting it in writing or walk away from the deal. Note that if his contract with the mortgage company does not allow him to rent any of the premises, that really doesn't help you. Instead, should the lender bring that up, that's all the reason the landlord would need to tell you that you have to get out and hand you that 60 day notice.