The occupant at the time of the foreclosure sale is a "bona fide tenant" of the former owner
with a fixed term lease:
The new laws only pertain to bona fide tenants as defined by the Act. A bona fide tenant of the
previous owner is someone who entered into a lease agreement before the Notice of Foreclosure
was recorded, the lease was negotiated at "arms-length," and the rent is not "substantially" lower
than the fair market rent for the property (unless reduced because of a subsidy). However, if the
tenants are the child, spouse or parent of the former owner, they are not bona fide.
If a tenant is bona fide and a fixed term lease is in effect at the time of the Notice of Foreclosure,
the tenant is now allowed to remain in possession of the property until the lease expires. However,
if the tenant fails to comply with the terms of the lease, such as paying rent, an appropriate 3-Day
Notice may be served.
The Act does not affect any federal, state or local provisions for subsidized tenants that have
longer time periods or other additional protections for their tenants. In other words, the tenant
still receives the same rights and obligations provided by the subsidized housing rules or rent
control.
A 90-Day Notice to Quit can be served notwithstanding a fixed term lease with the prior owner. If
the property is sold to a third party who plans on taking occupancy of the subject property as their
principal residence, a 90-Day Notice to Quit may also be served.
A 90-Day Notice to Quit may be served to recover possession of the subject property.
A 60-Day Notice to Quit may be served.
A 3-Day Notice to Quit may be served.
One of the occupants is the former owner of the subject property:
The occupant at the time of the foreclosure sale is a tenant of the former owner, but
not bona fide
The tenant is a bona fide tenant and the tenancy is month-to-month or at-will under state
law:
The new owner is planning on taking occupancy as its principal residence:
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