Cal. Civ. Code § 5
Claim by foreclosing owner to set new use and occupancy rate
Operative Text
Section 5. If a foreclosing owner disagrees with the amount of rent or use and occupancy rates that a tenant-at-will or lessee pays to the foreclosing owner, the foreclosing owner may bring a claim in district or superior court or the housing court to claim that the rent is unreasonable and set a new use and occupancy rate. A bona fide lease between the foreclosed-upon owner and the lessee or proof of rental payment to the foreclosed-upon owner shall be presumed reasonable.
Under Mass. Gen. Laws c. 186A § 5, when a foreclosing owner believes the existing rent or use-and-occupancy amount paid by a tenant-at-will or lessee is unreasonable, the law provides a court-based process—in district, superior, or housing court—to challenge that amount and have a new rate established. Importantly, the law builds in a presumption of reasonableness: if a tenant can show a bona fide lease with the prior owner or documented rental payments to that owner, the existing rate is presumed fair unless the foreclosing owner overcomes that presumption. This provision balances the foreclosing owner's ability to seek a rate adjustment against protections for tenants who had legitimate arrangements with the previous owner.
Plain English — not legal advice.
A foreclosing owner operating under Mass. Gen. Laws c. 186A § 5 who believes an inherited rent or use-and-occupancy rate is unreasonable must pursue that challenge through the appropriate court—district, superior, or housing court—rather than unilaterally changing the amount. Compliant operators generally document their basis for claiming the existing rate is unreasonable before initiating such a proceeding, understanding that a tenant's bona fide lease or proof of prior rental payments carries a legal presumption of reasonableness that must be addressed. Consulting with a licensed Massachusetts attorney familiar with post-foreclosure landlord-tenant law is a common step before bringing a claim under this section.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Mass. Gen. Laws c. 186A § 5 gives tenants-at-will and lessees a meaningful protection: if a foreclosing owner tries to set a new use-and-occupancy rate through court, any bona fide lease or documented history of rental payments to the prior owner is presumed reasonable, placing the burden on the foreclosing owner to show otherwise. Tenants facing such a claim may find it useful to gather records like lease agreements, rent receipts, or bank statements that demonstrate the prior payment arrangement. Tenant-rights organizations in Massachusetts and the housing court's self-help resources can help tenants understand how this presumption under § 5 may apply to their circumstances.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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