Posted in Asset Protection,Real Estate Law
Previously, the federal Protecting Tenants at Foreclosure Act of 2009 (“PTAF”) provided some protection to Florida tenants leasing property in foreclosure. Subject to certain exceptions, the PTAF mandated that purchasers at a foreclosure sale take title to the property subject to the rights of a bona fide tenant. It also required the purchaser comply with certain notice requirements prior to terminating a lease. Unfortunately, the PTAF expired on December 31, 2014, potentially leaving Florida tenants unprotected. Thus, Florida legislatures enacted Section 83.561 of the Florida Statutes to help fill the void left by the expiration of the PTAF.
Pursuant to Section 83.561 of the Florida Statutes, once again a purchaser at a foreclosure sale will generally take title to the real property subject the rights of a bona fide Florida tenant. The protection is limited, however, as the purchaser may terminate the lease upon 30-day written notice. If the tenant fails to cooperate and remains on the premises past the expiration of the 30-day notice period, the purchaser may then apply to the court for a writ of possession. As with most things, there are exceptions and we suggest you consult with a qualified Florida attorney if you have any questions or find yourself leasing property in foreclosure.
Please see the link below for more information: http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0000-0099/0083/Sections/0083.561.html