| 1 | A bill to be entitled |
| 2 | An act relating to rental property foreclosure or short- |
| 3 | sale actions; requiring lenders to notify tenants or |
| 4 | lessees of potential foreclosure or short-sale actions |
| 5 | against the rental property; requiring the lenders to |
| 6 | provide tenants or lessees a first right of refusal to |
| 7 | purchase the property at fair market value; specifying |
| 8 | eligibility requirements to exercise such right; requiring |
| 9 | lenders to use certain escrow funds for certain purposes; |
| 10 | specifying lender liability for certain costs for failure |
| 11 | to comply with certain notice requirements; specifying |
| 12 | time restrictions on tenants or lessees bringing actions |
| 13 | for damages; providing an effective date. |
| 14 |
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| 15 | Be It Enacted by the Legislature of the State of Florida: |
| 16 |
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| 17 | Section 1. (1) Upon consideration of initiating a |
| 18 | foreclosure or short-sale proceeding against mortgaged property |
| 19 | that is subject to a rental or lease agreement, the lender shall |
| 20 | notify each tenant or lessee that such action may be initiated |
| 21 | against the property of which the tenant's or lessee's dwelling |
| 22 | unit is a part. The lender shall provide the tenant or lessee |
| 23 | with a first right of refusal to purchase the property at fair |
| 24 | market value. In order to exercise such right, the tenant or |
| 25 | lessee must show proof of the rental agreement and a rental |
| 26 | history of at least 1 year. The lender shall use any funds held |
| 27 | in escrow relating to such mortgage or note for the purpose of |
| 28 | closing costs of the purchase if the tenant or lessee chooses |
| 29 | the option to purchase. If the tenant or lessee does not choose |
| 30 | the option to purchase, the lender shall use such escrow funds |
| 31 | to relocate the tenant or lessee. |
| 32 | (2) Failure to comply with the notice requirements of |
| 33 | subsection (1) renders the lender liable for closing costs or |
| 34 | relocation costs and attorney's fees and related costs. Any |
| 35 | action by the tenant or lessee to recover damages must be |
| 36 | brought within 90 days after such notice or after the tenant or |
| 37 | lessee learns of the lender's failure to provide such notice. |
| 38 | Section 2. This act shall take effect July 1, 2010. |