Residential Rental Unit Foreclosures
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Residential Rental Unit Foreclosures
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Residential Rental Unit Foreclosures

Public Advocate Releases Fact Sheet on Rights of Tenants in Foreclosed Properties

In response to a new law, the Foreclosure Fairness Act, the office of Acting Public Advocate Stefanie Brand has released a fact sheet containing information on the rights of tenants to remain in their rented units even if the property where the apartment they are renting has been foreclosed. This new law requires purchasers of foreclosed properties to provide written notice to tenants within 10 days after taking ownership explaining to tenants their right to stay in their unit as well as information regarding where rent should be sent to.

This notice must be distributed to tenants in buildings with 10 or fewer units. In buildings with 10 or more units, the notice must be posted in a common area of the building. If the Foreclosure Fairness Act is violated, tenants will be able to sue the new owners of foreclosed properties or their agents for either triple damages or $2,000 per violation of the law if the proper notice is not given under this law or tenants are pressured to leave in violation of the law. For additional information on this issue, visit the Public Advocate's website on the rights of tenants in foreclosed properties.

Public Advocate and DOBI Address Residential Rental Unit Foreclosures

On March 12, 2009, NJAR® learned that New Jersey Public Advocate Ronald Chen sent letters to the executive officers and managers of certain real estate companies informing them of the rights of residential tenants in buildings that have been foreclosed upon. According to the 1994 Supreme Court ruling in Chase Manhattan Bank v. Josephson, the Anti-Eviction Act protects tenants living in rental units from eviction even if the property where they live has been foreclosed upon.

New Jersey Public Advocate Ronald K. Chen and New Jersey Department of Banking and Insurance (DOBI) Commissioner Steven M. Goldman outlined a joint effort on December 23, 2008 to address the rights of tenants in buildings that have been foreclosed. According to the 1994 New Jersey Supreme Court decision Chase Manhattan Bank v. Josephson, the Anti-Eviction Act protects tenants living in rental units from eviction even if the building they live in has been foreclosed.

The Public Advocate's office has created a brochure outlining the rights of residential tenants living in buildings that have been the subject of foreclosure. In addition, the New Jersey Real Estate Commission has prepared a bulletin for New Jersey real estate licensees outlining penalties for violating the Anti-Eviction Act, which include a maximum $5,000 fine for a first violation and/or revocation or suspension of one's real estate license.

NJAR® also issued a statement in response to the Public Advocate's and DOBI's work on residential rental unit foreclosures.

NJAR® Members: Login here to access a bulletin for New Jersey real estate licensees.


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