If the seasonal condo I have rented for a month goes into foreclosure, do they have to uphold my contract v
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If the seasonal condo I have rented for a month goes into foreclosure, do they have to uphold my contract v
I rent a condo in FL for March. I have a
already signed a one month lease for
March 2019. I have heard the unit is
going to be foreclosed. Will they honor
our lease or return my deposit if they
dont. Thanks
Asked on April 24, 2018 under Real Estate Law, Michigan
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
1) Foreclosure cuts off all rights of the owner, including the right to lease out the space. Whomever acquires the condo after foreclosure (e.g. the bank) could voluntarily choose to honor your lease, but is not required to; the lease will bind or obligate them.
2) The owner who is being foreclosed upon should return your deposit if the foreclosure occurs, since in that case, he cannot provide the thing (the rental) you provided the deposit for. If he does not, you'd have to sue him for the money, which can be difficult and expensive if he is in a different state--and even if you sue and win, if he spent, lost, etc. the money and doesn't have the funds to repay (which is certainly possible, if he is being foreclosed upon for nonpayment of his loan or HOA dues or whatever it is that he failed to pay), you will not get your money back: winning a court case does not make money appear where there is none.
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