Beginning January 1, 2027, California's SPARE Act (AB 747) will make it more challenging to obtain and defend default judgments based on questionable service of process. While the Act was largely motivated by concerns over fraudulent service in the consumer debt context, its requirements apply broadly to civil litigation, including commercial unlawful detainer actions.
For commercial landlords, the SPARE Act's sweeping reforms regarding how lawsuits and unlawful detainer actions must be served and documented have a practical effect: service attempts must be documented more thoroughly, substitute service will require greater diligence, and tenants will have additional tools to challenge defaults based on defective service. Below are several key changes that commercial landlords, property owners, managers, and their process servers should begin preparing for now as they navigate the updated statutory landscape.
New Photo Verification of Service Attempts
Beginning January 1, 2027, any proof of service for personal delivery, substitute service, or service by posting must include at least one photograph of the site – including metadata with date, time, and GPS coordinates – where service was effected or attempted. If no GPS or cellular signal is available, the process server must provide a detailed written statement explaining why.
For service at a place of business, at least one photograph must depict the entrance of the specific office where service occurred. A photograph may be omitted only where the process server reasonably determines that taking one would compromise their physical safety, and a detailed explanation must accompany the proof of service in that case.
Generic service attempts, especially at large multi-tenant commercial buildings, will face significantly greater scrutiny: a photograph of the wrong suite, the wrong floor, or a building lobby rather than the tenant's specific unit could undermine the proof of service and, ultimately, the enforceability of any resulting default judgment. Accordingly, commercial landlords should ensure that their process servers are providing fully compliant proofs of service immediately upon completing service, so that no delay occurs between the expiration of the response period and the application for entry of default. A proof of service that is deficient or missing the required photographic evidence could jeopardize not only the validity of the service attempt, but also the complaint and the application for default judgment, and could provide grounds for a tenant to vacate a judgment.
Higher Standards for Substitute Service
The SPARE Act codifies what constitutes "reasonable diligence" before a party may resort to substitute service or service by posting. Specifically, it requires at least three good-faith attempts at personal service on three different days and at three different times before substitute service or service by posting may be used. Commercial unlawful detainer actions retain an important exception that generally allows landlords to focus service efforts at the tenant's business premises rather than attempting service at the tenant's residence.
Personal Service of Notices as the Preferred Method
The SPARE Act's heightened pleading requirement for unlawful detainer complaints means that personal service of three-day notices and other termination notices may now be the preferred method of service for commercial landlords. Even if the parties agreed to alternate notice procedures in the lease, methods like overnight delivery make it difficult to state the required details of date, time, and location of service with certainty at the time the complaint is drafted. Although certified mail, if delivered and recorded correctly, should provide the commercial landlord with the necessary delivery information, it leaves the door open to challenges as to when the clock starts on the cure period.
Additionally, the SPARE Act now requires unlawful detainer complaints to state not only the method of service of the termination notice but also the date, time, and location where service was effected.
To address these risks and requirements, some commercial landlords have already begun opting to serve three-day notices exclusively by personal delivery, regardless of alternative methods authorized under the lease, because it allows the process server to provide the tenant with an unambiguous start date for the cure period. While this could lead to increased expenses for service, commercial landlords should consider adopting personal service as a matter of best practice. They should also ensure that any individual serving a three-day notice or other termination notice is documenting the exact date, time, and location of service contemporaneously.
Vacating Default Judgments for Improper Service: No Time Limit
The SPARE Act creates two new motions that would (1) allow a tenant to vacate a default judgment that is void for lack of proper service at any time after a judgment is entered, or (2) allow a tenant to set aside a default or default judgment where service was not lawfully effected. With this second motion, the burden notably shifts to the party who obtained the default – meaning that it could be on the landlord to prove that service was lawful rather than on the tenant to prove that it was not.
From a practical standpoint, commercial landlords must be prepared for courts to more closely examine service records and have documented evidence to prove that service was valid. A weak proof of service that may have gone unchallenged in the past could become the basis for having a default judgment set aside.
Practical Implications for Drafting Notice Provisions
While the SPARE Act does not directly amend landlord-tenant lease requirements, the heightened service standards have immediate implications for how commercial leases are drafted and administered.
First, premises addresses must be accurately and specifically stated in the lease. The new photographic requirements mean that a process server must photograph the door or entrance of the specific office where service is made. If the lease describes the premises as "Suite 200" but the tenant actually occupies a space labeled "Suite 200A" or identified only by a building directory listing, there is a real risk that service directed to the wrong location will be challenged. Landlords should ensure that the address stated in the lease, including suite, unit, or floor designations, matches the actual signage and labeling at the property.
Additionally, landlords and property managers should be prepared to provide process servers with clear directions to the tenant's unit within a building to allow for accurate GPS-stamped photos of the specific door or entrance. This is particularly important in large office complexes, industrial parks, or multi-building campuses where addresses or suite numbers may be confusing. Coordinating with process servers early reduces the risk of inaccurate or insufficient records of service.
Action Items for Commercial Landlords
The SPARE Act significantly raises the bar for service of process in California, and commercial landlords will feel its effects in unlawful detainer actions, lease enforcement, and default judgment practice. Commercial landlords should begin reviewing their current practices now and consider the following steps before the SPARE Act takes effect:
- Confirm that process servers can provide GPS-stamped photographs and compliant proofs of service.
- Update notice-service procedures to capture and preserve the date, time, and location of service.
- Consider personal service as the preferred method for three-day and other termination notices.
- Verify that lease files accurately identify tenant premises, including suite and unit designations.
- Preserve service-related records and train property management personnel on the new requirements.
By taking these steps before January 1, 2027, commercial landlords can reduce the risk of service challenges, avoid delays in unlawful detainer proceedings, and place themselves in a stronger position to defend default judgments if challenged.