Real Green Trends
Are you a bona fide tenant of a property in Miami, Aventura, Sunny Isles and other areas of South Florida going to foreclosure sale?
New requirements have been put in place also for South Florida Real Estate concerning notice that must be given to bona fide tenants/lessees (not former borrowers or their immediate family members) of properties that go to foreclosure sale after May 20, 2009.
This law is in effect immediately. Section 702 of the new law Protecting Tenants at Foreclosure Act of 2009 is summarized below and it affects eviction/unlawful detainer law nationwide.
1. Tenant of a foreclosed property must now be given a 90 day notice to vacate. The notice to vacate must set forth the rights of the tenant under the new act. This portion of the new law applies to tenants on a month to month rental agreement, written or unwritten.
2. The lessee under a bona fide lease entered into before the notice of foreclosure was recorded is allowed to remain in the property until the end of the remaining term of the lease. If you sell the property with the lessee in place, the new third party owner who intends to occupy the property as a primary residence may terminate the lease however the 90 day notice must be given by the third party owner. An investor can also purchase these properties if they intend to honor the current lease.
3. The bona fide lease or tenancy, for purposes of the new law, is considered bona fide only if:
A. The borrower, child, spouse or parents of the borrower is not the tenant;
B. The lease or tenancy was the result of an arms-length transaction; and
C. Rent under the lease or tenancy is not “substantially” lower than fair market rent for the property unless the rent is reduced or subsidized due to a Federal, State or local subsidy.
This new law does not apply to property where the former owners remain in possession following the foreclosure sale.
If the occupant of a condo or a home in Aventura real estate, Miami Beach, Sunny Isles, Hollywood or other areas in South Florida has a lease, every effort should be made to obtain a copy of the lease to determine the length of the lease period, the monthly rental and whether or not the lease may be terminable at will under the applicable State law.
If the property is occupied by a tenant under a month to month tenancy, a 90 day notice must be given. If it is an oral rental, copies of cancelled rent checks must be submitted.
The new law states that without a lease, the 90 day notice rule applies.
Should the tenant refuse to provide a copy of a lease, the listing agent will assume there is no written lease and he/she will immediately contact their Eviction Representative.
This new legislation applies to single family homes and condos – whether oceanfront or not – in South Florida including but not restricted to Aventura, Hollywood, Hallandale Beach, Sunny Isles Beach, and Miami Beach, etc.
Should you find this piece of information useful, please share it with your friends and contact me to assist you in selling and/or buying your home or condo in Miami-Dade and Broward counties.