Sb 2070
Florida Senate - 2009
SB 2070
By Senator Aronberg
27-00315C-09
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A bill to be entitled
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An act relating to the termination of a rental
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agreement at foreclosure; creating s. 83.683, F.S.;
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providing legislative intent; requiring a landlord to
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notify each tenant within a specified time that a
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foreclosure proceeding has been initiated against the
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premises of which the tenant's dwelling unit is a
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part; requiring that the written notice include
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certain specified information; authorizing the tenant
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to terminate the rental agreement after receiving
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notice of the foreclosure proceeding; requiring the
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tenant to pay rent so long as the tenant remains in
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the dwelling unit; requiring a landlord to notify a
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prospective tenant of any foreclosure proceeding;
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requiring the prospective tenant to sign a document
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acknowledging that the tenant is aware of the
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foreclosure proceeding and the consequences of
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executing a rental agreement with the landlord;
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providing that a tenant may not be evicted from the
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dwelling unit for a specified time if the landlord did
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notify the tenant of the foreclosure proceeding;
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providing that the landlord is subject to a civil
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penalty for a violation of the act; prohibiting
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certain persons and entities from recording as
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negative credit information the fact that a tenant was
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evicted from his or her residential property if the
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eviction was due solely to the foreclosure of the
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landlord's rental property; requiring that such
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negative information be removed from the tenant's
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Florida Senate - 2009
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credit report or profile by a specified date;
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providing an effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Section 83.683, Florida Statutes, is created to
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read:
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83.683 Termination of rental agreement at foreclosure;
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notice; remedies.—
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(1) It is the intent of the Legislature to protect the
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interests of tenants residing in, or planning to reside in,
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dwelling units on premises that are subject to a foreclosure
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proceeding.
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(2)(a) The landlord of a premises that is subject to a
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foreclosure proceeding must notify each tenant that a
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foreclosure proceeding has been initiated against a premises.
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The notice, which must be in writing and be delivered to each
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tenant no later than 7 days after the petition for foreclosure
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is served, must inform the tenant that:
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1. Foreclosure proceedings have been initiated against the
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premises of which the tenant's dwelling unit is a part and that
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foreclosure of the property may affect the right of the tenant
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to continue to reside in the dwelling unit.
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2. The tenant may terminate his or her rental agreement
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with the landlord by giving the landlord at least 7 days'
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notice.
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3. The landlord may not penalize the tenant for the early
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termination of the rental agreement even if the present rental
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agreement contained a provision requiring the tenant to give the
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landlord greater than a 7-day notice.
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(b) If the tenant terminates the rental agreement after
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receiving notice of the pending foreclosure proceeding, he or
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she is liable only for unpaid rent and fees that are due from
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the date of the foreclosure notice to the date the tenant
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vacates the dwelling unit. A tenant is not liable for any rent
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or penalties due solely to the early termination of the rental
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agreement.
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(3)(a) If a foreclosure proceeding has been initiated
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against a premises containing one or more dwelling units, the
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landlord must immediately notify any prospective tenant of the
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foreclosure proceeding at the time the prospective tenant
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inspects the property.
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(b) If a prospective tenant chooses to rent the dwelling
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unit, the landlord must attach to the rental agreement a writing
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notifying the prospective tenant of the foreclosure proceeding.
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Before the rental agreement is executed, the prospective tenant
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must first sign the notice document acknowledging that he or she
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has been notified of the foreclosure proceedings and the
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potential consequences of executing the rental agreement.
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(4) If the landlord fails to notify a present tenant or a
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prospective tenant of the pending foreclosure proceeding within
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the applicable time periods, the landlord or the owner of the
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foreclosed property may not evict the tenant until 60 days after
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the final court judgment.
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(5) Any landlord who violates this section is subject to a
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civil penalty not to exceed $1,000 per dwelling unit. The civil
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penalty is in addition to any other remedy authorized by law.
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(6) A bank or bank holding company, credit union, small
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loan company operating pursuant to chapters 516 and 520, a
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consumer credit reporting agency regulated under 15 U.S.C. ss.
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1681 et seq., credit card company, credit counseling company,
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insurance company, or collection agency may not record as
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negative credit information the fact that a tenant was evicted
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from his or her residential property if the eviction was due
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solely to the foreclosure of the landlord's rental property. If
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any such negative information is recorded in a tenant's credit
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report or profile, such information must be removed from the
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report or profile by October 1, 2009.
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Section 2. This act shall take effect July 1, 2009, and
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applies to premises containing one or more dwelling units which
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are subject to foreclosure proceedings initiated on or after
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that date.
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