Florida Senate - 2012                                     SB 586
       By Senator Fasano
       11-00118-12                                            2012586__
    1                        A bill to be entitled                      
    2         An act relating to foreclosures; providing that the
    3         purchaser of a foreclosed residential dwelling unit
    4         may not take possession until a specified period after
    5         notifying a tenant of the intent to take possession;
    6         requiring the purchaser to submit proof of the notice
    7         to the clerk of court; providing that the tenant may
    8         terminate a lease upon receiving the notice; providing
    9         that the notice requirement does not eliminate certain
   10         requirements to make an occupant of property a party
   11         to a foreclosure action; creating s. 83.495, F.S.;
   12         providing requirements for landlords following
   13         commencement of a foreclosure action; requiring that
   14         the landlord hold the security deposit and advance
   15         rent in an interest-earning account in specified
   16         circumstances; requiring that the landlord disclose in
   17         writing to a prospective tenant a foreclosure action
   18         and its possible effects on the tenancy; providing an
   19         exception to liability for failure to provide notice;
   20         requiring the purchaser in a foreclosure sale to
   21         credit the tenant for security deposits and advance
   22         rents under certain conditions; providing an effective
   23         date.
   25  Be It Enacted by the Legislature of the State of Florida:
   27         Section 1. Possession of foreclosed residential dwelling
   28  unit; notice to tenant.—
   29         (1)A purchaser who receives a certificate of title on a
   30  foreclosed residential dwelling unit may take possession of the
   31  premises that are subject to a rental agreement no earlier than
   32  30 days after the purchaser gives the tenant written notice
   33  stating that the dwelling unit has been sold and that the
   34  purchaser desires to take possession of the dwelling unit. The
   35  purchaser must give notice to each tenant by first-class mail.
   36         (2)The clerk of court may not issue a writ of possession
   37  unless the purchaser submits to the clerk a copy of the notice
   38  provided to the tenant as required by subsection (1).
   39         (3)Upon receipt of the notice, the tenant may terminate
   40  the lease by giving 7 days’ written notice to the purchaser.
   41         (4)This section does not eliminate the common-law
   42  requirement to make the occupant of property a party to a
   43  foreclosure action as a condition precedent to the court
   44  authorizing the clerk of court to issue a writ of possession as
   45  part of the foreclosure action.
   46         Section 2. Section 83.495, Florida Statutes, is created to
   47  read:
   48         83.495Commencement of mortgage foreclosure; disclosure;
   49  security deposits and advance rents.—After the initial service
   50  of a complaint on a landlord in a mortgage foreclosure
   51  proceeding against a residential dwelling unit:
   52         (1)The landlord or the landlord’s agent shall hold as
   53  provided under s. 83.49(1)(b) the total amount of money
   54  deposited or advanced by a current or prospective tenant as
   55  security for performance of the rental agreement or as advance
   56  rent for other than the next immediate rental period.
   57         (2)(a)The landlord or the landlord’s agent must disclose
   58  in writing to a prospective tenant the existence of the pending
   59  foreclosure proceeding before the landlord or the landord’s
   60  agent executes a rental agreement during the pendency of the
   61  foreclosure proceeding. The written disclosure must inform the
   62  prospective tenant that the foreclosure proceeding might affect
   63  the right to possess and reside in the leased dwelling unit and
   64  that the landlord is required to hold the tenant’s total amount
   65  of deposit money or advance rent as provided under s.
   66  83.49(1)(b).
   67         (b)A person authorized to enter into a rental agreement on
   68  the landlord’s behalf is not liable for failure to notify a
   69  prospective tenant of the foreclosure proceeding unless he or
   70  she received notice of the existence of the pending foreclosure
   71  proceeding from the landlord.
   72         (3)If the landlord or the landlord’s agent does not hold
   73  the deposit money or advance rent as provided under s.
   74  83.49(1)(b) and the property is sold in foreclosure, the
   75  purchaser shall credit the tenant’s account for any deposit
   76  money paid by the tenant and shall make claims against the
   77  deposit pursuant to s. 83.49(1)(b) attributable to the tenant.
   78  The purchaser shall also credit the tenant’s account for any
   79  advance rent for an unexpired rental period. The tenant must
   80  have documentation demonstrating the payment of the security
   81  deposit or advance rent in order to receive the credit.
   82         Section 3. This act shall take effect July 1, 2012.