Tenant Rights Post Floreclosure

Posted by on Aug 9, 2011 in Articles, Memos | Comments Off on Tenant Rights Post Floreclosure

Galvin Realty Law Group, P.S.

 

MEMORANDUM

 

 

  1. 1.      Summary.

In response to the growing number of foreclosures, both the federal and state governments have passed laws to protect tenants.  The differences between the laws, which are set forth below, are difficult to reconcile.

 

 

  1. 2.      State Law (ESB 5810).

 

The new state law applies to one to four unit residential properties and does not have an expiration date.

 

The law requires that the new owner provide tenants with written notice of the foreclosure, which states that the property was purchased at a trustee’s sale and that the new owner may either give the tenant a new rental agreement or a written notice to vacate the property.

 

New owners are required to give tenants at least 60 days notice before the tenants are removed from the property.  Tenants are not required to pay rent to the new owner (and the new owner does not have to honor the old lease) unless they sign a new lease.

 

 

  1. 3.      Federal Law (Helping Families Save Their Homes Act).

 

The federal law applies to all types of housing and expires in 2012.

 

New owners are required to give tenants at least 90 days notice before the tenants are removed from the property.  As long as they occupy the property, the tenants continue paying rent under the terms of their old lease.  The new owner must honor the existing lease or, for renters on a month-to-month lease, provide a minimum of 90 days notice.

The following articles are published for informational purposes and not for the purposes of providing legal advice. Please contact Galvin Realty Law Group at 425.248.2163 for a consultation about your specific needs and circumstances.