Florida Senate - 2009 SB 704 By Senator Lynn 7-00111-09 2009704__ 1 A bill to be entitled 2 An act relating to the termination of a rental 3 agreement at foreclosure; creating s. 83.577, F.S.; 4 providing legislative intent; prohibiting a landlord 5 from terminating the rental agreement without a 6 specified period of prior notice; requiring a landlord 7 to notify each tenant that foreclosure proceedings 8 have been initiated against the premises of which his 9 or her dwelling unit is a part; requiring that the 10 written notice include specified information; 11 authorizing the tenant to terminate the rental 12 agreement under certain circumstances; requiring the 13 tenant to pay rent so long as the tenant remains in 14 the dwelling unit; if a premises is foreclosed, 15 prohibiting the landlord from terminating a rental 16 agreement before a specified number of days after 17 notifying the tenant that the rental agreement will be 18 terminated; authorizing the tenant to terminate the 19 rental agreement sooner; requiring that the landlord 20 mail the notices to each tenant and conspicuously post 21 the notices on the premises; providing for application 22 of the act; providing an effective date. 23 24 Be It Enacted by the Legislature of the State of Florida: 25 26 Section 1. Section 83.577, Florida Statutes, is created to 27 read: 28 83.577 Termination of rental agreement at foreclosure; 29 notice; remedies.— 30 (1) It is the intent of the Legislature to protect the 31 interests of tenants residing in a dwelling unit on premises 32 subject to foreclosure, therefore, the rental agreement of a 33 tenant residing in a unit within a premises that is subject to 34 foreclosure or that is foreclosed may not be terminated unless 35 the tenant is provided at least 120 days' prior written notice. 36 (2)(a) If foreclosure proceedings are initiated against a 37 premises containing one or more dwelling units, the landlord 38 must notify each tenant in each dwelling unit in writing within 39 7 days after the petition for the foreclosure proceeding is 40 filed. The notice must inform the tenant that: 41 1. Foreclosure proceedings have been initiated against the 42 premises of which the tenant's dwelling unit is a part and 43 foreclosure may affect the right of the tenant to continue to 44 reside in the dwelling unit. 45 2. The landlord is prohibited by law from terminating the 46 rental agreement until at least 120 days after the landlord 47 delivers a termination notice to the tenant. 48 3. The tenant may terminate the rental agreement after 49 receiving notice of initiation of the foreclosure proceeding by 50 giving the landlord written notice of the tenant's intention to 51 terminate the rental agreement; however, the tenant must give 52 the landlord at least 10 days' notice before terminating the 53 rental agreement. 54 (b) If the tenant terminates the rental agreement, he or 55 she is liable for rent that may be due under the rental 56 agreement as of the effective date of the termination in an 57 amount that is prorated to the effective date of the 58 termination. Rent due under this paragraph is payable at the 59 time that it would have been payable under the terms of the 60 rental agreement being terminated. Except for rent for which the 61 tenant is liable under this paragraph, the tenant is not liable 62 for any rent or damages due solely to the early termination of 63 the rental agreement. 64 (3)(a) If the premises of which a dwelling unit is a part 65 is foreclosed, the landlord may not terminate the rental 66 agreement of any tenant until 120 days after the landlord 67 provides written notice of the termination to the tenant. The 68 notice must inform the tenant that: 69 1. The premises has been foreclosed and the landlord has 70 decided to terminate the rental agreement but is prohibited by 71 law from terminating the agreement until at least 120 days after 72 the tenant is provided written notice of the landlord's decision 73 to terminate the agreement. 74 2. The tenant may terminate the rental agreement sooner 75 than 120 days after receiving notice of termination of the 76 rental agreement; however, the tenant must give the landlord at 77 least 10 days' notice before terminating the rental agreement. 78 (b) If the tenant terminates the rental agreement, he or 79 she is liable for rent that may be due under the rental 80 agreement as of the effective date of the termination in an 81 amount that is prorated to the effective date of the 82 termination. Rent due under this paragraph is payable at the 83 time that it would have been payable under the terms of the 84 rental agreement being terminated. Except for rent for which the 85 tenant is liable under this paragraph, the tenant is not liable 86 for any rent or damages due solely to the early termination of 87 the rental agreement. 88 (4)(a) Any notice that the landlord is required to provide 89 under this section must be delivered to each tenant in writing 90 and conspicuously posted on the premises of the dwelling unit. 91 (b) The notice shall be sent by first-class mail to each 92 tenant who occupies a dwelling unit. For each tenant, the notice 93 shall be: 94 1. Addressed to the name of the tenant or, if the name of 95 the tenant is unknown or cannot be ascertained, to “occupant”; 96 and 97 2. Sent to the address of the premises that is the subject 98 of the foreclosure. 99 Section 2. This act shall take effect July 1, 2009, and 100 applies to premises containing one or more dwelling units which 101 are subject to foreclosure proceedings initiated on or after 102 that date.