Q&A: Tenant Obligations During Foreclosure

Divided house and wooden gavel. Division of real estate in case of divorce or inheritance.

Q. One of our condo units that the owner was renting out to a tenant is now in foreclosure. But before the unit went into foreclosure, the owner (who has been missing in action) was behind on the common charges and the condo board was taking the tenant’s rent to pay for those common charges. Now the tenant refuses to pay, claiming he doesn’t have to because of the foreclosure, and he still remains in the unit. Can the condo sue the tenant for the common charges?

                        —Concerned Unit Owner

A. According to Slava Hazin, a partner at the New York City law firm Warshaw Burstein LLP: “The tenant’s obligation to pay rent to the landlord and, in turn, the condo, has nothing to do with the foreclosure action. The condo could sue the tenant to collect the rent if there is a provision in the tenant’s lease that the condo has the right to collect the rent in the event of the owner’s failure to pay common charges. Condos usually require a lease rider with such a provision to protect the condo. Keep in mind that the condo has a claim for all unpaid common charges, attorneys’ fees, and costs in the foreclosure action. The sale proceeds are distributed first to pay the mortgage (if any) and then to the condo.”

Related Articles

Businessman is holding legal documents. Eviction Notice Form. Human resource management concept. Vector on isolated background. EPS 10

Q&A: Subleasing a Co-op

Q&A: Subleasing a Co-op

Flooded vintage interior. 3d concept

New Flood Provisions Must Be Incorporated into Proprietary Leases

Yes, the Law Applies to Co-ops

A hand presents an eviction notice isolated in flat design style (cut out)

Q&A: Co-op Tenant Evicted

Q&A: Co-op Tenant Evicted

A hand presents an eviction notice isolated in flat design style (cut out)

Q&A: Forcing Out Co-op Sublease Tenants

Q&A: Forcing Out Co-op Sublease Tenants

Q&A: Lease Rights

Q&A: Lease Rights

Q&A: Lease Rights

New York US state law, code, legal system and justice concept with a 3d render of a gavel on the New Yorker flag on background.

The Continuing Effect of HSTPA on Co-op & Condo Owners

The Law of Unintended Consequences