Expands the definition of "tenant" for purposes of notice upon the commencement of an action to foreclose upon the leased residential real property

BILL NUMBER:S8082

Title of bill

An act to amend the real property actions and proceedings law, in relation to notice to tenants upon foreclosure of the leased residential real property

Purpose

This bill fixes a technical problem that was identified in the definition of tenant in Chapter 507 of the Laws of 2009.

Summary of provisions

Clarifies that the definition of tenant shall mean any person who appears as a lessee on a lease.

Justification

One of the intentions of the sweeping foreclosure prevention legislation (Chapter 507 of the Laws of 2009) was to give tenants notice if the building they reside in is in foreclosure and gives tenants of residential property the right to remain in occupancy following a foreclosure for the greater of 90 days or their remaining lease term. However, the definition of "tenant" inadvertently omitted those tenants who became tenants subsequent to the commencement of foreclosure proceedings from the notice provisions of the law.

Prior to the new notice requirements in RPAPL 1203(4), tenants were often unaware of a foreclosure action instituted against their landlord/mortgagor. Consequently, since the foreclosure action may take many months, intervening leases or rental agreements may be entered into with the landlord/mortgagor. This bill clarifies language to ensures that all tenants, those at the initial filing of the Notice of Pendency, and any subsequent tenants will receive the same notice and protections afforded under the law.

Legislative history

New Bill.

Fiscal implications

None to the State.

Effective date

Immediately.