CIVIL CODE SECTION 890-891
Rent Skimming
890. (a) (1) "Rent skimming" means using revenue received from the
rental of a parcel of residential real property at any time during
the first year period after acquiring that property without first
applying the revenue or an equivalent amount to the payments due on
all mortgages and deeds of trust encumbering that property.
(2) For purposes of this section, "rent skimming" also means
receiving revenue from the rental of a parcel of residential real
property where the person receiving that revenue, without the consent
of the owner or owner's agent, asserted possession or ownership of
the residential property, whether under a false claim of title, by
trespass, or any other unauthorized means, rented the property to
another, and collected rents from the other person for the rental of
the property. This paragraph does not apply to any tenant,
subtenant, lessee, sublessee, or assignee, nor to any other hirer
having a lawful occupancy interest in the residential dwelling.
(b) "Multiple acts of rent skimming" means knowingly and willfully
rent skimming with respect to each of five or more parcels of
residential real property acquired within any two-year period.
(c) "Person" means any natural person, any form of business
organization, its officers and directors, and any natural person who
authorizes rent skimming or who, being in a position of control,
fails to prevent another from rent skimming.
891. (a) A seller of an interest in residential real property who
received a promissory note or other evidence of indebtedness for all
or a portion of its purchase price secured by a lien on the property
may bring an action against any person who has engaged in rent
skimming with respect to that property. A seller who prevails in the
action shall recover all actual damages and reasonable attorney's
fees and costs. The court may award any appropriate equitable
relief. The court shall award exemplary damages of not less than
three times the actual damages if the defendant has engaged in
multiple acts of rent skimming and may award exemplary damages in
other cases.
(b) A seller of an interest in residential real property who
reacquires the interest from a person who has engaged in rent
skimming with respect to that property, or a law enforcement agency,
may request the court for an order declaring that the reacquired
interest is not encumbered by any lien that is or has the effect of a