ENROLLED 2020 Legislature SB 1362 20201362er 1 2 An act relating to rental agreements; repealing s. 3 83.561, F.S., relating to the termination of a rental 4 agreement upon foreclosure; creating s. 83.5615, F.S.; 5 providing a short title; providing for the assumption 6 of interest in certain foreclosures on dwellings or 7 residential real property; providing construction; 8 defining the term “federally-related mortgage loan”; 9 requiring the director of the Division of Consumer 10 Services of the Department of Agriculture and Consumer 11 Services to notify the Division of Law Revision of the 12 repeal of the Protecting Tenants at Foreclosure Act of 13 2009 within a specified timeframe; providing effective 14 dates, including a contingent effective date. 15 16 Be It Enacted by the Legislature of the State of Florida: 17 18 Section 1. Section 83.561, Florida Statutes, is repealed. 19 Section 2. Effective upon the repeal of the federal 20 Protecting Tenants at Foreclosure Act, Pub. L. No. 111-22, 21 section 83.5615, Florida Statutes, is created to read: 22 83.5615 Protecting Tenants at Foreclosure Act.— 23 (1) This section may be cited as the “Protecting Tenants at 24 Foreclosure Act.” 25 (2) In the case of any foreclosure on a federally-related 26 mortgage loan or on any dwelling or residential real property 27 after the effective date of this section, any immediate 28 successor in interest in such property pursuant to the 29 foreclosure shall assume such interest subject to: 30 (a) The successor in interest providing a notice to vacate 31 to any bona fide tenant at least 90 days before the effective 32 date of the notice; and 33 (b) The rights of any bona fide tenant: 34 1. Under any bona fide lease entered into before the notice 35 of foreclosure to occupy the premises until the end of the 36 remaining term of the lease, except that a successor in interest 37 may terminate a lease effective on the date of sale of the unit 38 to a purchaser who will occupy the unit as a primary residence, 39 subject to the tenant receiving the 90-day notice under 40 paragraph (a); or 41 2. Without a lease or with a lease terminable at will, 42 subject to the tenant receiving the 90-day notice under 43 paragraph (a). 44 45 This subsection does not affect the requirements for termination 46 of any federal- or state-subsidized tenancy or of any state or 47 local law that provides more time or other additional 48 protections for tenants. 49 (3) For the purposes of this section: 50 (a) A lease or tenancy shall be considered bona fide only 51 if: 52 1. The mortgagor or the child, spouse, or parent of the 53 mortgagor under the contract is not the tenant; 54 2. The lease or tenancy was the result of an arms-length 55 transaction; and 56 3. The lease or tenancy requires the receipt of rent that 57 is not substantially less than fair market rent for the property 58 or the unit’s rent is reduced or subsidized due to a federal, 59 state, or local subsidy. 60 (b) The term “federally-related mortgage loan” has the same 61 meaning as in 12 U.S.C. s. 2602. 62 (c) The date of a notice of foreclosure shall be deemed to 63 be the date on which complete title to a property is transferred 64 to a successor entity or person as a result of an order of a 65 court or pursuant to provisions in a mortgage, deed of trust, or 66 security deed. 67 Section 3. If the Protecting Tenants at Foreclosure Act of 68 2009, Pub. L. No. 111-22, is repealed, the director of the 69 Division of Consumer Services of the Department of Agriculture 70 and Consumer Services shall notify the Division of Law Revision 71 within 10 days after the repeal. 72 Section 4. Except as otherwise expressly provided in this 73 act, this act shall take effect July 1, 2020.