Florida Senate - 2011 SB 784 By Senator Smith 29-00798-11 2011784__ 1 A bill to be entitled 2 An act relating to the termination of rental 3 agreements; amending s. 83.49, F.S.; requiring the 4 landlord or mortgagor or its agent to tender to the 5 registry of the court or to the foreclosing entity all 6 funds held for advance rent or security deposits at 7 the time of foreclosure; directing that such funds 8 continue to be held for the use and benefit of the 9 tenants of the foreclosed property; providing that a 10 landlord or mortgagor or its agent commits a theft if 11 the landlord or mortgagor or its agent do not comply 12 with certain specified provisions of law; providing 13 for penalties; creating s. 83.683, F.S.; providing 14 that a purchaser of residential property in 15 foreclosure may terminate a tenant’s residential 16 rental agreement under certain circumstances; 17 providing an exception for an immediate purchaser 18 intending to sell the property to a buyer who intends 19 to occupy it as his or her primary residence; setting 20 forth the content to be included in the termination 21 notice to be given to the tenant; providing certain 22 exceptions to application of the act; requiring the 23 immediate purchaser named in the certificate of title 24 to credit the tenant’s account for any deposit money 25 paid by the tenant and for any advance rent for the 26 unexpired rental period; providing for future 27 expiration; providing an effective date. 28 29 Be It Enacted by the Legislature of the State of Florida: 30 31 Section 1. Subsections (10) and (11) are added to section 32 83.49, Florida Statutes, to read: 33 83.49 Deposit money or advance rent; duty of landlord and 34 tenant.— 35 (10) Upon the filing of foreclosure, the landlord or 36 mortgagor or its agent shall tender to the registry of the court 37 or, at the foreclosing entity’s election, to the foreclosing 38 entity, all funds held for advance rent or security deposits for 39 tenants of the mortgaged property, which shall continue to be 40 held for the use and benefit of the tenants. 41 (11) Failure by the landlord or mortgagor or its agent to 42 comply with subsection (1) or subsection (10) constitutes a 43 theft as defined in and punishable under s. 812.014 if the 44 failure to comply is done knowingly and with the intent to 45 deprive the tenant of a right to the funds or a benefit from the 46 funds, or to appropriate the funds for the landlord’s, 47 mortgagor’s, or agent’s own use or the use of a person not 48 entitled to the use of the funds. 49 Section 2. Section 83.683, Florida Statutes, is created to 50 read: 51 83.683 Termination of rental agreement upon foreclosure.— 52 (1)(a) Upon issuance of a certificate of title pursuant to 53 s. 45.031, if a tenant is occupying the residential premises and 54 is not excluded by subsection(2), the immediate purchaser named 55 in the certificate of title takes title to the residential 56 premises as a landlord, and may terminate the residential rental 57 agreement by delivering a written, 90-day notice to the tenant. 58 (b)1. If there is an existing written rental agreement that 59 was entered into before the certificate of title was issued, the 60 tenant may remain in possession of the premises until the end of 61 the lease term or at least 90 days following the date that the 62 tenant receives a copy of the written notice of termination, 63 whichever is longer. 64 2. However, if the immediate purchaser named in the 65 certificate of title sells the premises to a purchaser who will 66 occupy the premises as a primary residence, the immediate 67 purchaser may terminate the written rental agreement and the 68 tenant is entitled to a written, 90-day notice of termination. 69 (c) The 90-day notice to terminate the rental agreement 70 must be in substantially the following form: 71 72 You are hereby advised that your rental agreement is 73 terminated effective 90 days following the date that 74 this written termination notice is delivered to you, 75 or at the end of the term of your written rental 76 agreement, whichever is later, and that I demand 77 possession of the premises upon that date. You are 78 still obligated to pay rent during the 90 days or 79 during the term of your written rental agreement, in 80 the amount you have been paying. Rent shall be 81 delivered to [name], [address]. 82 83 (d) Delivery of the written notice must be in the manner as 84 provided in s. 83.56(4). 85 (2) Subsection (1) does not apply if: 86 (a) The mortgagor being foreclosed, or the child, spouse, 87 or parent of the mortgagor being foreclosed, is occupying the 88 dwelling unit being foreclosed, unless it is a multiunit 89 property and other tenants occupy dwelling units; 90 (b) The rental agreement is not an arms-length transaction; 91 or 92 (c) The rental agreement allows rent that is substantially 93 less than the fair market rent for the premises, unless the rent 94 is reduced or subsidized due to a federal, state, or local 95 subsidy. 96 (3) The immediate purchaser named in the certificate of 97 title issued pursuant to s. 45.031 shall credit the tenant’s 98 account for any deposit money paid by the tenant to the 99 predecessor in interest and may make claims against the deposit 100 pursuant to s. 83.49. The immediate purchaser shall also credit 101 the tenant’s account for any advance rent for the unexpired 102 rental period. The tenant must provide evidence of the amount of 103 the security deposit or advance rent in order to receive the 104 credit. This subsection applies only to the extent that the 105 security deposit or advance rent is in the possession of the 106 immediate purchaser or the foreclosing mortgagee. 107 (4) This section expires December 31, 2013. 108 Section 3. This act shall take effect upon becoming a law.