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This entry was published on 2021-04-02
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SECTION 1305
Notice to tenants
Real Property Actions & Proceedings (RPA) CHAPTER 81, ARTICLE 13
§ 1305. Notice to tenants. 1. Definitions. For the purposes of this
section, the following definitions shall apply:

(a) "Residential real property" shall mean real property located in
this state improved by any building or structure that is or may be used,
in whole or in part, as the home or residence of one or more persons,
and shall include any building or structure used for both residential
and commercial purposes.

(b) "Successor in interest" shall mean any person or entity who or
which acquires title in a residential real property as a result of a
judgment of foreclosure and sale, or other disposition during the
pendency of the foreclosure proceeding, or at any time thereafter but
prior to the expiration of the time period as provided for in
subdivision two of this section.

(c) "Tenant" shall mean any person who appears as a lessee on a lease
of one or more dwelling units of a residential real property that is
subordinate to the mortgage on such residential real property; or who at
such time is a party to an oral or implied rental agreement with the
mortgagor and obligated to pay rent to the mortgagor or such mortgagor's
representative, for the use or occupancy of one or more dwelling units
of a residential real property.

2. Notwithstanding any other provision of law, a tenant of a unit not
subject to rent control or rent stabilization shall have the right to
remain in occupancy of the unit of the subject residential real property
where he or she resides on the date of service of the notice required by
subdivision three of this section for the greater of: (a) a period of
ninety days from the date of the service of such notice; or (b) for the
remainder of the lease term if the tenant occupied the premises at the
commencement of the foreclosure action or received a notice pursuant to
section thirteen hundred three of this article; or (c) for the remainder
of the lease term, provided that the lease agreement was entered into in
good faith pursuant to this section and federal law, up to a maximum of
three years, for tenants who did not occupy the premises at the
commencement of the foreclosure action and therefore did not receive the
original notice of service required pursuant to section thirteen hundred
three of this article; provided that if a successor in interest who
acquires title to such residential real property intends to occupy a
single unit as his or her primary residence and the unit is not subject
to a federal or state statutory system of subsidy or other federal or
state statutory scheme, the successor may limit for one unit only, the
tenant's right of occupancy to ninety days. For a lease to qualify under
this subdivision, the tenant under such lease may not be the owner of
the residential real property, and such lease must require the payment
of rent for such unit that is not substantially less than the fair
market rent for the unit, unless the unit is subject to federal or state
statutory system of subsidy or other federal or state statutory scheme.
A tenant under paragraph (a), (b), or (c) of this subdivision shall
continue such tenancy subject to any limitations in this subdivision
under the same terms and conditions as were in effect at the time of
entry of the judgment of foreclosure and sale, or if no such judgment
was entered, upon the terms and conditions that were in effect at the
time of the transfer of ownership of such property. For purposes of this
section, "fair market rent" shall mean rent for a unit of residential
real property of similar size, location and condition.

3. Notwithstanding any other provision of law, and consistent with
subdivision two of this section, a successor in interest of residential
real property shall provide written notice to all tenants in the same
manner as required by subdivision four of section thirteen hundred three
of this article: (a) that they are entitled to remain in occupancy of
such property for the remainder of the lease term, or a period of ninety
days from the date of mailing of such notice, whichever is greater, on
the same terms and conditions as were in effect at the time of entry of
the judgment of foreclosure and sale, or if no such judgment was
entered, upon the terms and conditions as were in effect at the time of
transfer of ownership of such property; and (b) of the name and address
of the new owner. Any person or entity who or which becomes a successor
in interest after the issuance of the ninety-day notice provided for in
this subdivision, shall notify all tenants of its name and address and
shall assume such interest subject to the right of the tenant to
maintain possession as provided in this subdivision.

4. Acceptance of rental payments by any successor in interest on terms
provided in subdivision three of this section shall not affect the right
of the successor in interest to evict such tenant, as provided by law,
upon the expiration of the time period as provided in subdivision two of
this section or earlier if the tenant does not pay rent pursuant to any
lease or oral or implied rental agreement in effect at the time of
issuance of the judgment of foreclosure, or if no such judgment was
issued, upon the terms and conditions as were in effect at the time of
transfer of ownership of such property.

5. The rights conferred upon a tenant by subdivision two of this
section shall be in addition to any other rights of such tenant, under
law, including those rights conferred upon: (a) any tenant not named in
the foreclosure action; or (b) any tenant whose tenancy is subsidized by
the federal government, this state or any political subdivision of this
state; or (c) any tenant whose tenancy is subject to rent control, rent
stabilization, or federal statutory schemes.