Protecting Tenants in Foreclosure – Florida Edition

What happens when the landlord you signed a lease with no longer owns the residence because of a successful foreclosure sale?

Even with a valid lease with the previous property owner a tenant may still have to vacate the property if the new owner does not wish to continue renting the premises. However, as a Florida renter you do have some protections.

On June 2, 2015, Governor Rick Scott signed HB 779, creating Florida Statute 83.561. The new statute requires that the purchaser at a foreclosure sale take title to residential property subject to the tenant’s leasehold rights. The tenant may remain in possession of the premises until the new owner serves a 30-day notice of termination.

This statute provides protection for tenants and allows them a reasonable time frame to relocate that cannot be abolished by the new owners. Unfortunately, if the thirty (30) day notice of termination is executed correctly a renter probably has no option but to vacate by the requested date. Otherwise, the new owners could sue the tenants as holdover and the tenants then may be responsible for double rent. Some people move because of favorable school districts or proximity to work and public transportation. Unfortunately, even with a valid lease the new owner can legally do what they wish with the property as long as they give proper notice. The exceptions to the statute are as follows:

• (1) the tenant is the mortgagor or is the child, spouse, or parent of the mortgagor; (2) the rental agreement is not the result of an arm’s length transaction; or (3) the rental agreement allows the tenant to pay rent that is substantially below fair market value (unless subsidized).

Bottom line is a landlord cannot harass you, or bully you, into paying rent. As a tenant you are not to be abused by your landlord. Landlord harassment is a serious matter that you should seek legal counsel for. If your landlord has done any of the previous or any other acts that you would consider overbearing, abusive, or harassing you may be entitled to not only actual and statutory damages up to $1,000. Depending on how egregious the debt collection is you may also be entitled to punitive damages and your attorney’s fees and court costs.

If you are a Florida tenant and feel that the new owner of your foreclosed rental property is not following the time requirements provided in the statute call Palmetto Law Group P.A., today for your consultation. Also, if you feel at the end of this process you did not receive your Security Deposit back from your former landlord you may have a cause of action. Give us a call toll free at 1-855-529-7256, or simply reach out to us through our online portal.