If a renter has signed a lease for 1 year and the homeowner has been foreclosed upon within that year, can the renter stay to the end of the lease?

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If a renter has signed a lease for 1 year and the homeowner has been foreclosed upon within that year, can the renter stay to the end of the lease?

Asked on October 3, 2012 under Real Estate Law, Connecticut

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Federal law gives some rights and protection to a tenant in the event that their rental unit is foreclosed upon. Tenants who have a written lease can continue to occupy the home until the end of the lease period, or 90 days, whichever is longer. The only exception would be if the new owner intends to move in and occupy the home as their primary residence. In that case, a 90 day notice to move would apply. Additionally, in cases where state law provides more protection than the federal law, the state law applies.

Note:  Sometimes an incentive can be negotiated between a new owner and a tenant so that the tenant agrees to move out prior to the end of their lease, or 90, which ever applies. This incentive is known as “Cash for Keys”. Basically, the owner will pay a tenant to leave the property early in exchange for a cash payment. The amount and timing of the payment can be worked out on a case-by-case basis.


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