What happens to the leasee when the landlord files foreclosure in NYS?
Posted by admin on 12 Feb 2008 3:38 pm. Filed under Renting & Real Estate.
MB asked:
I own a business and rent an apartment from the same landlord, same property. The lease is for 10 years on the business and another 6 months on the apartment. She is now filing foreclosure. Does the bank take over? Will I come home and find padlocks on my doors? Please only serious answers.
I own a business and rent an apartment from the same landlord, same property. The lease is for 10 years on the business and another 6 months on the apartment. She is now filing foreclosure. Does the bank take over? Will I come home and find padlocks on my doors? Please only serious answers.
On February 12th, 2008 at 10:35 pm
That depends. Once the foreclosure is completed, your lease becomes nullified since the lease was with the former owner. If the bank sells the property to someone else, then you would need to work it out with the new owner. You would have to sign a new lease with the new owner. At the very least, they cannot kick you out without notice. They would have to give you at least 30 days notice to vacate the property.
On February 15th, 2008 at 4:27 am
If the property is in foreclosure and the bank takes over it is up to the new owners (whoever the bank sells it to) to decide on whether or not to honor the existing lease agreements. most likely the new owners will not honor them since they are going to buy the buildings to make money. they may allow you to stay and give you a new lease with new terms. read your lease, there should be a clause in it about transfer of ownership it should read that the terms of the agreement will terminate upon the transfer. basically, once the foreclosure goes through, your lease will be null and void.