What's happening
This bill requires property owners to inform tenants or prospective tenants if the property is facing imminent foreclosure before lease signing or renewal.
Why it matters
Helps tenants make informed decisions. By requiring landlords to disclose imminent foreclosure before a lease is signed or renewed, tenants can avoid moving into or committing to properties that may soon be repossessed, preventing sudden displacement.
Increases transparency in the rental market. This law would prevent landlords from hiding serious financial issues from renters, promoting fair dealings and reducing the risk of tenants being caught off guard by foreclosure proceedings.
Protects tenant rights and stability. Tenants who are aware of pending foreclosure can better plan for their housing needs, seek alternative arrangements, or negotiate lease terms, reducing the stress and disruption caused by unexpected eviction due to foreclosure.
Holds property owners accountable. By setting a legal obligation to disclose foreclosure status, the bill discourages unethical behavior by landlords and supports a more trustworthy rental environment.
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Who cares
Headline styles
Notify Tenants of Foreclosure
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to judiciary
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Require Foreclosure Notice to Tenants
In Assembly Committee · Judiciary · Sponsor Jaime R. Williams
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1055
2019-2020 Regular Sessions
IN SENATE
January 10, 2019
Introduced by Sen. PERSAUD -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary
AN ACT to amend the real property law, in relation to requiring a mortgagor to provide notice of imminent foreclosure to his or her tenant or tenants
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The real property law is amended by adding a new section 235-h to read as follows:
§ 235-h. Imminent foreclosure. 1. As used in this section, "imminent foreclosure" shall mean a mortgagor has received notice of foreclosure delivered along with a summons and complaint, as required in subdivision two of section thirteen hundred three of the real property actions and proceedings law.
2. A mortgagor shall, prior to the tenant or prospective tenant either renewing or signing a lease agreement, disclose to his or her tenant or prospective tenant of imminent foreclosure.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00914-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property law, in relation to requiring a mortgagor to provide notice of imminent foreclosure to his or her tenant or tenants
Purpose or general idea of bill
The purpose of this bill is to add a new section that will require a mortgagor to provide notice of imminent foreclosure to his/her tenants or potential tenants prior to signing or renewing a lease agreement.
Summary of specific provisions
The real property law is being amended by adding a new section, 235-h. 235-which states that "imminent foreclosure" shall mean a mortgagor has received notice of foreclosure delivered along with a summons and complaint, as required in subdivision 2 of section 1303 of the real property actions and proceedings law. A mortgagor shall disclose immi- nent foreclosure to his/her tenants or prospective tenants prior to signing or renewing a lease.
Justification
This bill is designed to protect the rights of tenants and/or prospec- tive tenants by requiring mortgagers to disclose to their tenants or prospective tenants, notice of imminent foreclosure. Informing tenants of imminent foreclosure provides them with the adequate time needed to find a new home and to make necessary preparations before the foreclo- sure process is completed.
Prior legislative history
2017/2018: REFERRED TO JUDICIARY
Fiscal implications to state and local government
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.