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 83.683 Termination 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.