TANGEMAN, J. —
A purchaser at a foreclosure sale seeks to evict the occupant of the property as soon as possible. It serves a notice to quit after the sale but before recording title to the property. Here we reject the occupant's claim that the notice to quit is premature, and hold that Code of Civil Procedure section 1161a
Jeoung Hie Lee and Il Hie Lee own Westlake Village Property, L.P. (Westlake Village), a business entity that formerly owned a skilled nursing facility. In 2002, Westlake Village leased the facility to Westlake Health Care Center (Westlake Health), a corporation also owned and controlled by the Lees. The lease had an automatic subordination clause and a permissible subordination clause with a nondisturbance provision. It was for a 20-year term.
Six years into the lease, Westlake Village took out a five-year loan from TomatoBank, N.A., secured by a deed of trust on the nursing facility. When Westlake Village defaulted on the loan and filed for bankruptcy, TomatoBank
The day after it purchased the facility, Leevil served Westlake Health with a notice to quit. Leevil recorded title to the facility five days later. Westlake Health did not vacate the facility, and Leevil sued for unlawful detainer. Westlake Health's answer alleged that its lease was senior to the deed of trust and that the notice to quit was invalid because it was served before title was recorded. At a bifurcated trial, the court found that the lease was subordinate to the deed of trust and was extinguished by the trustee's sale. The court also found that the notice to quit was valid.
Westlake Health agreed to surrender possession of the facility and pay damages before the second phase of trial began. The parties stipulated that the judgment would "not affect any party's appellate rights." The sheriff evicted Westlake Health and Leevil leased the facility to another skilled nursing provider.
After Westlake Health filed its opening brief, Leevil filed a motion to dismiss the appeal as moot. We deferred ruling on the motion until after oral argument. While this case was under submission, our Supreme Court ordered publication of U.S. Financial, L.P. v. McLitus (2016) 6 Cal.App.5th Supp. 1 [211 Cal.Rptr.3d 149] (McLitus). In McLitus, the Appellate Division of the San Diego County Superior Court held that a property owner's service of a notice to quit before it perfects title to the property renders invalid any subsequent unlawful detainer proceeding. (Id. at pp. Supp. 3-5.) We vacated submission and ordered supplemental briefing.
Leevil asks us to dismiss the appeal as moot because Westlake Health is no longer in possession of the facility and cannot operate it without a license. We deny this request.
Westlake Health reserved the right to appeal in the stipulation, and correctly argues that this court can restore its possession of the facility. (Old National Financial Services, Inc. v. Seibert (1987) 194 Cal.App.3d 460, 467-468 [239 Cal.Rptr. 728].) Moreover, Westlake Health could apply to renew its license if possession were restored. The appeal is not moot.
Westlake Health complains that it was denied the opportunity to present extrinsic evidence concerning the intent and purpose behind the lease's subordination clauses. We are not persuaded.
During the proceedings below, Westlake Health made offers of proof as to the testimony that would be provided: (1) testimony from Ms. Lee, who "would simply say that [the lease] was negotiated on behalf of, yes, her as the principal of the lessee, as well as the principal of the landlord" and that "[o]bviously the lender was not a party to the contract at that time," and (2) testimony from the attorney who drafted the lease to explain why the subordination and nondisturbance clauses were included. The court then indicated how it intended to rule, and asked Westlake Health whether it intended to submit additional evidence. Westlake Health stated that it did not.
Westlake Health claims that the trial court erred in finding the lease subordinate to the deed of trust. We disagree.
Relying on McLitus, Westlake Health contends that the trial court should have granted judgment on the pleadings because Leevil did not perfect title before it served the notice to quit. It claims the notice to quit was premature and nullified the unlawful detainer proceedings that followed. We are not persuaded by the reasoning of McLitus and reject this contention.
Westlake Health concedes that it held over in possession after the three-day notice to quit was served. It does not contend that the trustee's sale failed to comply with section 2924 of the Civil Code, or that Leevil failed to perfect title before Westlake Health was removed from the property. Section 1161a's requirements were strictly complied with.
To conclude otherwise, this court would have to impose an additional requirement onto the statutorily required notice to quit, i.e., perfection of title before service. McLitus held that unless the trustee's deed was recorded prior to service of the notice to quit, the tenant would be prevented "from effectively verifying the identity of the alleged purchaser of a property as a search of recorded documents would prove futile." (McLitus, supra, 6 Cal.App.5th at p. Supp. 4.) But here, if Westlake Health were concerned with verifying Leevil as the purchaser of the property, it had more than five weeks between service of the notice to quit and filing of the unlawful detainer complaint to do so. And, in any event, Westlake Health was free to challenge Leevil's claimed ownership in court. (Orcilla v. Big Sur, Inc. (2016) 244 Cal.App.4th 982, 1010 [198 Cal.Rptr.3d 715] [title can be litigated in a § 1161a unlawful detainer action].)
None of the cases cited in McLitus support the requirement that title be perfected before service of the notice to quit: Baugh v. Consumers Associates, Ltd. (1966) 241 Cal.App.2d 672, 674-675 [50 Cal.Rptr. 822] and Bevill v. Zoura (1994) 27 Cal.App.4th 694, 697 [32 Cal.Rptr.2d 635] (Bevill), consider the required contents of a notice to quit served in a landlord-tenant dispute, not one served after a trustee's sale. The contents of the two notices are different. (Compare § 1161, subd. 2. with § 1161a, subd. (b)(3).) Stonehouse Homes LLC v. City of Sierra Madre (2008) 167 Cal.App.4th 531, 540-541 [84 Cal.Rptr.3d 223], discusses when a controversy is ripe in a declaratory judgment action, not the type of proceeding here. Kessler v. Bridge (1958) 161 Cal.App.2d Supp. 837, 841 [327 P.2d 241], describes the steps required to perfect title, an issue not raised in this case. Garfinkle v. Superior Court (1978) 21 Cal.3d 268, 275 [146 Cal.Rptr. 208, 578 P.2d 925] (Garfinkle) and Salazar v. Thomas (2015) 236 Cal.App.4th 467, 480 [186 Cal.Rptr.3d 689],
The motion to dismiss the appeal is denied. The judgment is affirmed. Leevil is awarded costs on appeal.
Yegan, Acting P. J., and Perren, J., concurred.