Here is some information about a pending CA law .
The California bill (SB 1151) would enable a tenant to walk away from a lease or rental agreement if the landlord failed to make the required disclosure, and would provide for damages of twice the monthly rent, or actual damages, whichever is greater, if the tenancy is terminated by the new owner.
Interestingly, the California Apartment Association supports this bill. They point out that residents of single-family rentals are more likely to lose their rental upon sale at foreclosure than apartment dwellers. This makes sense, because people who buy multiunit properties are less likely to plan to live there than those buying single-family homes (and an owner can live in only one unit, after all). The California bill would still enable the new owners who buy at the foreclosure sale to oust a tenant upon 90 days' notice -- but if the default was not disclosed, the tenant would be entitled to damages. Of course, the hope is that landlords who learn of their disclosure duty will comply, giving tenants the information they deserve to make an informed rental choice.