Renter's Rights in Florida Foreclosure
Foreclosures during an economic upheaval in Florida and other states take a toll not only on the ill-fated homeowners but also on the tenants of rental properties that have been foreclosed. Many renters have been taken by surprise when they have learned that their apartments have become the possession of a bank. However, there are protections available for renters under both Florida and federal law.
Other People Are Reading
-
Applicable Laws
-
Both state and federal laws provide rights to apartment renters. Florida Statutes, Chapter 83, Part I relates to nonresidential leases, and Part II covers tenant rights in residential leases. The statute sets forth requirements for a lease and establishes the rights and obligations of landlord and tenant. It does not contain any provisions specifically relating to foreclosure of the rental property. However, its provisions help clarify how renters may proceed to protect their rights in such a situation.
On the other hand, Public Law 111-22, the Protecting Tenants at Foreclosure Act of 2009 (PTFA), provides federal protections directly to renters in Florida and across the country. The law maintains the sanctity of leases in residential foreclosure situations. Previously, leases ended at the moment of foreclosure, leaving renters scrambling to find a new home with little notice. The PTFA provides notice requirements and allows renters to remain on the premises until the end of their leases.
Lease or No Lease?
-
Signed lease agreements have become more important as housing foreclosures increase. Whether renters can receive full protections under the PTFA depends on whether they have a bona fide lease. Tenants who rent at will or month to month will receive 90 days' notice of the foreclosure action and their need to leave the premises. However, renters living under a lease may stay in the residence until the end of the lease period, which may give them more time to find alternate accommodations.
-
Cash For Keys
-
Renters can request cash in exhange for surrendering the property before the lease is up. The University of Florida's extension program for consumer affairs suggests that Florida renters who are facing eviction due to foreclosure negotiate cash settlements in agreement to leave before their leases end. This "cash for keys" arrangement may prove tempting to the new owner who wishes to move in quickly after purchasing the property. The program advises that renters who engage in these agreements leave the property tidy, with everything in working order.
Recovery of Deposits
-
After foreclosure, tenants should quickly seek the return of deposits from the landlord. Florida renters who gave deposits for security, pets or other reasons at the beginning of their lease or tenancy should immediately act to recover those fees from the landlord upon learning of the foreclosure action. Waiting to do so decreases the likelihood that they will be able to recover the funds. Renters should also request full information about how the foreclosure will affect them and what to expect as the process continues. This will enable them to make informed decisions based on a realistic time frame.
Lawsuits
-
Tenants can sue landlords for damages caused by foreclosure. Florida renters who are forced to move due to foreclosure may pursue suits in state court for damages. They may have breach of contract claims in cases for early termination because the landlord was obligated to provide access to the property for the full period of the lease. They may also pursue claims of fraud if the landlord continued to collect rent after the property went into foreclosure. Depending upon the lease amount, the renter may be able to go to Small Claims Court for these charges.
-
References
Resources
- Photo Credit house image by hans slegers from Fotolia.com law examination #6 image by stassad from Fotolia.com apartment lease sign image by Aaron Kohr from Fotolia.com dollars image by Svetlana Kashkina from Fotolia.com Calculating the receipts image by painless from Fotolia.com Justice image by MVit from Fotolia.com
