Florida Senate - 2009                                    SB 2070
       
       
       
       By Senator Aronberg
       
       
       
       
       27-00315C-09                                          20092070__
    1                        A bill to be entitled                      
    2         An act relating to the termination of a rental
    3         agreement at foreclosure; creating s. 83.683, F.S.;
    4         providing legislative intent; requiring a landlord to
    5         notify each tenant within a specified time that a
    6         foreclosure proceeding has been initiated against the
    7         premises of which the tenant's dwelling unit is a
    8         part; requiring that the written notice include
    9         certain specified information; authorizing the tenant
   10         to terminate the rental agreement after receiving
   11         notice of the foreclosure proceeding; requiring the
   12         tenant to pay rent so long as the tenant remains in
   13         the dwelling unit; requiring a landlord to notify a
   14         prospective tenant of any foreclosure proceeding;
   15         requiring the prospective tenant to sign a document
   16         acknowledging that the tenant is aware of the
   17         foreclosure proceeding and the consequences of
   18         executing a rental agreement with the landlord;
   19         providing that a tenant may not be evicted from the
   20         dwelling unit for a specified time if the landlord did
   21         notify the tenant of the foreclosure proceeding;
   22         providing that the landlord is subject to a civil
   23         penalty for a violation of the act; prohibiting
   24         certain persons and entities from recording as
   25         negative credit information the fact that a tenant was
   26         evicted from his or her residential property if the
   27         eviction was due solely to the foreclosure of the
   28         landlord's rental property; requiring that such
   29         negative information be removed from the tenant's
   30         credit report or profile by a specified date;
   31         providing an effective date.
   32  
   33  Be It Enacted by the Legislature of the State of Florida:
   34  
   35         Section 1. Section 83.683, Florida Statutes, is created to
   36  read:
   37         83.683Termination of rental agreement at foreclosure;
   38  notice; remedies.—
   39         (1)It is the intent of the Legislature to protect the
   40  interests of tenants residing in, or planning to reside in,
   41  dwelling units on premises that are subject to a foreclosure
   42  proceeding.
   43         (2)(a)The landlord of a premises that is subject to a
   44  foreclosure proceeding must notify each tenant that a
   45  foreclosure proceeding has been initiated against a premises.
   46  The notice, which must be in writing and be delivered to each
   47  tenant no later than 7 days after the petition for foreclosure
   48  is served, must inform the tenant that:
   49         1.Foreclosure proceedings have been initiated against the
   50  premises of which the tenant's dwelling unit is a part and that
   51  foreclosure of the property may affect the right of the tenant
   52  to continue to reside in the dwelling unit.
   53         2.The tenant may terminate his or her rental agreement
   54  with the landlord by giving the landlord at least 7 days'
   55  notice.
   56         3.The landlord may not penalize the tenant for the early
   57  termination of the rental agreement even if the present rental
   58  agreement contained a provision requiring the tenant to give the
   59  landlord greater than a 7-day notice.
   60         (b)If the tenant terminates the rental agreement after
   61  receiving notice of the pending foreclosure proceeding, he or
   62  she is liable only for unpaid rent and fees that are due from
   63  the date of the foreclosure notice to the date the tenant
   64  vacates the dwelling unit. A tenant is not liable for any rent
   65  or penalties due solely to the early termination of the rental
   66  agreement.
   67         (3)(a)If a foreclosure proceeding has been initiated
   68  against a premises containing one or more dwelling units, the
   69  landlord must immediately notify any prospective tenant of the
   70  foreclosure proceeding at the time the prospective tenant
   71  inspects the property.
   72         (b)If a prospective tenant chooses to rent the dwelling
   73  unit, the landlord must attach to the rental agreement a writing
   74  notifying the prospective tenant of the foreclosure proceeding.
   75  Before the rental agreement is executed, the prospective tenant
   76  must first sign the notice document acknowledging that he or she
   77  has been notified of the foreclosure proceedings and the
   78  potential consequences of executing the rental agreement.
   79         (4)If the landlord fails to notify a present tenant or a
   80  prospective tenant of the pending foreclosure proceeding within
   81  the applicable time periods, the landlord or the owner of the
   82  foreclosed property may not evict the tenant until 60 days after
   83  the final court judgment.
   84         (5)Any landlord who violates this section is subject to a
   85  civil penalty not to exceed $1,000 per dwelling unit. The civil
   86  penalty is in addition to any other remedy authorized by law.
   87         (6)A bank or bank holding company, credit union, small
   88  loan company operating pursuant to chapters 516 and 520, a
   89  consumer credit reporting agency regulated under 15 U.S.C. ss.
   90  1681 et seq., credit card company, credit counseling company,
   91  insurance company, or collection agency may not record as
   92  negative credit information the fact that a tenant was evicted
   93  from his or her residential property if the eviction was due
   94  solely to the foreclosure of the landlord's rental property. If
   95  any such negative information is recorded in a tenant's credit
   96  report or profile, such information must be removed from the
   97  report or profile by October 1, 2009.
   98         Section 2. This act shall take effect July 1, 2009, and
   99  applies to premises containing one or more dwelling units which
  100  are subject to foreclosure proceedings initiated on or after
  101  that date.