Tenant Rights in Lieu of Foreclosure in Florida

Florida tenants rights are not extinguished in foreclosure.

When a foreclosure occurs, tenants living in a rental home are not left out in the cold. In Florida, tenants rights are protected in foreclosure scenarios. This includes a deed in lieu of a foreclosure transaction conducted by the owner.

Significance

The Protecting Tenant and Foreclosures Act of 2009 establishes the right of the tenant to maintain the lease terms in a foreclosure situation. This means that if a property is foreclosed on, or is given up in a deed in lieu of foreclosure scenario, the tenant's lease is protected and cannot be violated by a bank owner or new owner of a property.

Function

In a deed in lieu of foreclosure, the new owner or bank owner is required to provide a tenant with a minimum of 90 days' notice to vacate or terminate the lease after taking ownership of the property. The owner can also offer a cash settlement for an earlier move out and termination of the lease, but the tenant is under no obligation to accept this.

Considerations

Tenants who were previously or who are in default of their lease term are not protected under Florida state law or the Tenant and Foreclosures Act of 2009. Tenants who have failed to maintain their agreement in their lease can be evicted under the terms of that lease regardless of the disposition of the property.

References

• Loansafe: Renter's Rights in Foreclosure
• Avvo: Deed in Lieu of Foreclosure
• Billls.com: Deed in Lieu of Foreclosure vs. Short Sale