1 New Jersey Department of Community Affairs Division of Codes and Standards Landlord-Tenant Information Service FORECLOSURES TENANT S RIGHTS February 2010 Due to the national mortgage crisis many properties are being foreclosed upon in New Jersey. Tenants may receive letters from landlords, realtors or attorneys that appear to be official notices threatening tenants with eviction due to foreclosures. These notices may contain cash for keys or bona fide cash offers, whereby tenants are offered money to move out of a property in a specific timeframe. Tenants are not required by law to accept these offers, and may not be evicted for not accepting them. A landlord must have good grounds under the New Jersey Eviction Law, N.J.S.A. 2A: to evict a tenant. Tenants should be aware that they retain their rights under landlord-tenant laws even in properties that are being or have already been foreclosed. A foreclosure may occur when a landlord defaults on paying his mortgage. In New Jersey the creditor can bring suit for foreclosure against the defaulting borrower (landlord) for delinquency of payments and force a sale of the property to recover money due on a loan. Federal Foreclosure Law Recent changes to federal law have strengthened a tenant s rights in foreclosure proceedings. However, the federal law does not preempt any State or local law that provides longer time periods or other additional protections for tenants. Pursuant to 12 USC 5220 the Helping Families Save Their Homes Act of 2009, P.L , Div A, Title VII sec. 702, 123 Stat. 1660, before a tenant can be evicted due to foreclosure, the landlord must provide the tenant with a 90 day notice to quit when the foreclosed property has been purchased by a buyer who wants to personally occupy it as his or her primary residence. However, if a tenant has a lease agreement that goes beyond the 90 days the landlord may not take action to evict the tenant until after the lease expires and the 90 day notice to quit has been given. The 90 day notice may be given 90 days before the lease expires. Month-to-month tenants and two and three-family owneroccupied units are not exempt from the 90 day notice requirements. New Jersey Foreclosure Fairness Act Pursuant to the New Jersey Foreclosure Fairness Act, N.J.S.A. 2A:50-69, et seq. any person acquiring a foreclosed property containing one or more residential rental units must provide notices to the tenants in English and Spanish, within 10 business days after the sale, letting tenants know that ownership has changed hands and that the tenants are not required to move because of the foreclosure. In buildings with 10 or fewer dwelling units, the new owner must
2 make a good faith effort to obtain the names of all the tenants occupying the property. Notices must be addressed to tenants by name, unless the new owner is unable to identify the tenant by name, then the owner shall address the notice to Tenant. The notice must also be placed on the front door of each tenant s unit and sent to each tenant via certified and regular mail. (See Attachment A for a copy of the required, NOTICE TO TENANTS ) In a residential property containing more than 10 dwelling units, the new owner must provide notice to tenants occupying the property by conspicuously displaying a copy of the NOTICE TO TENANTS in a prominent location, such as a common area of the building or other structure on the property. If there is no common area, the notice must be posted in a conspicuous location in each building, such as the walls of the front vestibule or any foyer or hallway near the main entrance of the building. (See Attachment A for a copy of the required, NOTICE TO TENANTS ) Notice Requirements to Tenants Prior to the Transfer of Title Due to a Foreclosure Action Any written or verbal communication, including a summons and complaint, an initial written or verbal communication by a foreclosing creditor, or any communication written or verbal that requests a tenant to vacate the property before the foreclosure or sale of the property, requires the foreclosing creditor to give notice to the tenants as outlined in the New Jersey Court Rules, Appx. XXII-K (2010) entitled Notice to Residential Tenants of Rights During Foreclosure. (See Attachment B for a sample of the Notice to Residential Tenants of Rights During Foreclosure. ) Notice Requirements to Tenants After the Transfer of Title Due to a Foreclosure Action When making a bona fide monetary offer to induce tenants to move, the new owner must provide a separate and different notice from the notice required to be given by a foreclosing creditor. The new owner must provide a copy of the NOTICE TO TENANTS (Attachment A) and give it with the initial and final written or verbal offer to the tenant. Bona Fide Offer The foreclosing agency, including a bank, creditor, or a new landlord may make a written bona fide (good faith) monetary offer requesting that the tenant vacate the property, without good cause. An acceptance of the offer by the tenant must be in writing and include an acknowledgement of the date of the receipt of the offer, and an understanding that the tenant had a five-day review period to accept or reject the offer presented. However, it is important to note that the acceptance of a bona fide monetary offer is voluntary. The tenant shall not be pressured by anyone, including the person making the offer to accept any offer to vacate the property. Pressure tactics include but are not limited to: 1) Mischaracterizing or misrepresenting the rights of the tenant under the law; 2) Implying the tenant is obligated to accept the offer; 3) Implying that there will be consequences against the tenant for failing to accept the offer; 4) Harassment, including but not limited to discontinuance of utilities, failure to maintain common areas or facilities, or any other failure to maintain the premises in a habitable condition; and 5) An increase in rent in excess of any rent control or rent leveling ordinance, or if the property is not subject to rent control, an unreasonable or unconscionable rent increase.
3 If a landlord imposes an unconscionable or unreasonable rent increase on a tenant in an attempt to get the tenant to move, the tenant should contact the local rent control board in the city or town where the property is located to file a complaint. If the rental unit is not controlled by rent leveling, then the tenant must dispute the unreasonable increase by going to court. See our Rent Increase Bulletin for information on unconscionable rent increases. Notice to Municipality A creditor serving a summons and complaint to foreclose on a residential property must, within 10 days of serving the summons and complaint, notify the municipal clerk of the municipality in which the property is located with a copy of the notice at the same time it is served on the owner. The municipal clerk shall forward a copy of the notice to the public officer, or other local officials responsible for enforcing property maintenance or public nuisance codes. (N.J.S.A. 46:10B-51) If the owner of a residential property vacates or abandons any property on which foreclosure proceeding has been initiated, but not yet conveyed, and the property is found to be a nuisance or in violation of any applicable State or local codes, the local public officer, municipal clerk, or other authorized municipal official shall notify the creditor. The creditor will have the responsibility to fix the nuisance or correct the violations. (N.J.S.A. 46:10B-51) Self-Help Evictions or Lockouts A landlord may not attempt a self-help eviction or lockout. Self-help evictions occur when the landlord or someone acting on the landlord s behalf enters into the dwelling unit without the permission of the tenant and without a judgment from the Court and forces the tenant to move, by removing the tenant s personal property from the premises or shutting off utilities in an attempt to force the tenant to move. A lockout occurs when the landlord padlocks the door or changes the locks while tenants are not home and then refuses to allow them back into the premises. Self-help evictions and lockouts are illegal in New Jersey. If the landlord shuts off the utilities voluntarily or if the utilities are discontinued due to nonpayment, the tenant may contact the electric, gas, or water and wastewater public utilities company and have the utilities placed in the tenant s name for continued service to be billed to the tenant, if a landlord-tenant relationship can be determined. This can usually be accomplished by providing a copy of the lease agreement. See the regulations for public utilities at N.J.A.C. 14:3-3A.6. If the landlord was responsible for the payment of those utilities, the tenant may deduct the utility costs paid by the tenant from the rent. The tenant may not be evicted for nonpayment of rent if the tenant used the unpaid portion of the rent to continue utility services to the rental premises after receiving notice that the services were in danger of being discontinued or were discontinued. If a landlord performs an illegal lockout, the tenant should call the police immediately. Under the New Jersey Criminal Code, N.J.S.A 2C:33:11, if the landlord refuses to allow the tenant back into the premises after the police have warned the landlord about the illegal procedure, the landlord may be charged with a disorderly person s offense. It shall be the duty of the (police) officer to prevent the landlord or any other person from obstructing or hindering the reentry and reoccupancy of the dwelling by the displaced occupant. The landlord must take a tenant to court before he can be evicted. Only a judge can order a legal eviction. If the tenant does not show up to court on the hearing date the tenant may be evicted by default.
4 If you are a tenant who is being wrongly evicted you should consult an attorney for legal assistance. If you can t afford an attorney, you may contact Legal Services of New Jersey to see if you qualify for free or reduced costs for legal services, call If a residential tenant receives a letter during a foreclosure proceeding or after a foreclosure from a licensed real estate agent in violation of the New Jersey Eviction Law or the New Jersey Foreclosure Fairness Act, the tenant may contact the New Jersey Real Estate Commission at (609) to file a complaint against the real estate agent. See our Grounds for an Eviction Bulletin for good causes for an eviction and notice requirements. Penalties Landlords or their agents, or employees who violate the New Jersey Foreclosure Fairness Act with respect to the tenant notice requirements or the treatment of tenants shall be subject to triple damages, or at the sole discretion of the victimized tenant, damages in the amount of $2,000, plus attorney s fees and costs.
5 NOTICE TO TENANTS THE FORMER OWNER OF (insert property address) HAS LOST THE PROPERTY AS A RESULT OF A FORECLOSURE. FROM THE TIME YOU RECEIVE THIS AND UNTIL FURTHER NOTICE, YOU SHOULD PAY RENT TO (insert name and address of person to whom rent is due) PLEASE SEND RENT BY (insert method of transmission) ON THE (insert day) OF EACH MONTH. WITH LIMITED EXCEPTIONS, THE NEW JERSEY ANTI-EVICTION ACT, N.J.S.A.2A: ET SEQ., PROTECTS YOUR RIGHT TO REMAIN IN YOUR HOME. FORECLOSURE ALONE IS NOT GROUNDS FOR EVICTION OF A TENANT. YOU ARE PROTECTED BY THIS LAW EVEN IF YOU DO NOT HAVE A WRITTEN LEASE. THE NEW OWNER CANNOT EVICT YOU WITHOUT "GOOD CAUSE," AS DETERMINED BY A COURT. EXAMPLES OF "GOOD CAUSE" ARE FAILURE TO PAY RENT, WILLFULLY DAMAGING THE PREMISES, OR PERSONAL OCCUPANCY BY THE NEW OWNER OF THE HOUSE OR APARTMENT THAT YOU NOW LIVE IN. A RESIDENTIAL TENANT IN NEW JERSEY CAN BE EVICTED ONLY THROUGH A COURT PROCESS. ONLY A COURT OFFICER WITH A COURT ORDER MAY REMOVE YOU FROM THE PREMISES, AND ONLY AFTER YOU HAVE BEEN GIVEN THE OPPORTUNITY TO DEFEND YOURSELF IN COURT. Attachment A
6 INDIVIDUALS CAN BE SUBJECT TO BOTH CIVIL AND CRIMINAL PENALTIES FOR TRYING TO FORCE YOU TO LEAVE YOUR HOME IN ANY OTHER MANNER, INCLUDING SHUTTING OFF UTILITIES OR OTHER VITAL SERVICE OR FAILING TO MAINTAIN THE PREMISES. YOU MAY, HOWEVER, ACCEPT FINANCIAL COMPENSATION FOR LEAVING VOLUNTARILY IF THE NEW OWNER OFFERS SUCH COMPENSATION. IF SOMEONE IS PRESSURING YOU TO LEAVE, CONSULT WITH AN ATTORNEY.
7 AVISO A INQUILINOS EL ANTERIOR DUEÑO DE (incluir la dirección de la propiedad) HA PERDIDO DICHA PROPIEDAD COMO RESULTADO DE UNA EJECUCIÓN HIPOTECARIA (FORECLOSURE EN INGLÉS). A PARTIR DE LA FECHA EN QUE USTED RECIBA ESTE AVISO Y HASTA NUEVO AVISO, USTED DEBE PAGAR LA RENTA A (incluir el nombre y la dirección de la persona que recibirá el pago de la renta). POR FAVOR ENVÍE LA RENTA POR (incluir método de pago) EL DÍA (incluir día) DE CADA MES. CON ALGUNAS EXCEPCIONES, LA LEY ANTIDESALOJO DE NEW JERSEY (N.J.S.A.2A: ET SEQ.) PROTEGE SU DERECHO A PERMANECER DONDE VIVE. LA EJECUCIÓN HIPOTECARIA POR SÍ SOLA NO JUSTIFICA EL DESALOJO DE INQUILINOS. USTED ESTÁ PROTEGIDO POR ESTA LEY, INCLUSO AUNQUE NO TENGA UN CONTRATO DE RENTA POR ESCRITO. EL NUEVO PROPIETARIO NO PUEDE DESALOJARLO SIN UNA RAZÓN VÁLIDA DETERMINADA POR UNA CORTE. EJEMPLOS DE UNA RAZÓN VÁLIDA SON FALTA DE PAGO DE LA RENTA, DAÑO INTENCIONAL A LA PROPIEDAD, O QUE EL NUEVO DUEÑO VAYA A OCUPAR LA CASA O APARTAMENTO DONDE USTED VIVE. UN INQUILINO RESIDENCIAL EN NEW JERSEY SÓLO PUEDE SER DESALOJADO A TRAVÉS DE UN PROCESO JUDICIAL. SÓLO UN OFICIAL DE LA CORTE CON UNA ORDEN JUDICIAL PUEDE DESALOJARLO DE SU RESIDENCIA, PERO SÓLO DESPUÉS DE QUE USTED TENGA LA OPORTUNIDAD DE DEFENDERSE EN LA CORTE. Attachment A
8 QUIEN TRATE DE CUALQUIER OTRA MANERA DE FORZARLO A DESALOJAR SU VIVIENDA, YA SEA CORTANDO LOS SERVICIOS BÁSICOS O DEJANDO DE MANTENER LA PROPIEDAD, PUEDE SER SUJETO A CASTIGOS CIVILES Y PENALES. SIN EMBARGO, SI EL NUEVO DUEÑO LE OFRECE COMPENSACIÓN ECONÓMICA PARA QUE USTED SALGA DE LA VIVIENDA POR SU PROPIA VOLUNTAD, USTED PUEDE ACEPTARLA. SI ALGUIEN LO ESTÁ PRESIONANDO PARA QUE SE VAYA, CONSULTE CON UN ABOGADO.
9 NOTICE TO RESIDENTIAL TENANTS OF RIGHTS DURING FORECLOSURE A FORECLOSURE ACTION HAS BEEN FILED CONCERNING (insert address of property) AND THE OWNERSHIP OF THE PROPERTY MAY CHANGE AS A RESULT. UNTIL OWNERSHIP OF THE PROPERTY CHANGES OR YOU ARE OTHEWISE INFORMED BY THE COURT OR THE MORTGAGE HOLDER, YOU SHOULD CONTINUE TO PAY RENT TO THE LANDLORD OR TO A RENT RECEIVER, IF ONE IS APPOINTED BY THE COURT. YOU SHOULD KEEP RECEIPTS OR CANCELLED CHECKS OF YOUR RENT PAYMENTS. IF YOU ARE NOT SURE HOW OR WHERE TO PAY RENT, SAVE YOUR RENT MONEY SO THAT YOU WILL HAVE IT WHEN THE OWNER DEMANDS IT. NONPAYMENT OF RENT IS GROUNDS FOR EVICTION. FORECLOSURE ALONE IS GENERALLY NOT GROUNDS TO REMOVE A BONA FIDE RESIDENTIAL TENANT. TENANTS WHO WANT TO STAY IN THEIR HOMES CAN BE REMOVED ONLY THROUGH A COURT PROCESS. WITH LIMITED EXCEPTIONS, THE NEW JERSEY ANTI-EVICTION ACT PROTECTS RESIDENTIAL TENANTS RIGHTS TO REMAIN IN THEIR HOME. THIS LAW INCLUDES PROTECTION FOR TENANTS WHO DO NOT HAVE WRITTEN LEASES. IT IS UNLAWFUL FOR ANYONE TO TRY TO FORCE YOU TO LEAVE YOUR HOME OUTSIDE THE COURT PROCESS, INCLUDING BY SHUTTING OFF UTILITIES OR FAILING TO MAINTAIN THE PREMISES. Attachment B
YOU AND YOUR LANDLORD A ST. LOUIS AREA GUIDE TO TENANT RESPONSIBILITIES AND RIGHTS Log onto https://www.courts.mo.gov/casenet/base/welcome.do for direct access to court records involving landlord-tenant
The Wisconsin Way A Guide for Landlords and Tenants More than 1.5 million Wisconsin residents live in rental housing. In some of the State's larger cities, more than half of the residents live in rental
City of Seattle Department of Planning and Development TRANSLATIONS For copies of this document in Amharic, Cambodian, Chinese, Korean, Laotian, Oromiffa, Russian, Somali, Spanish, Tagalog, Thai, Tigrinya
ERIC T. SCHNEIDERMAN Attorney General ERIC T. SCHNEIDERMAN Attorney General Dear New Yorker: My office receives many inquiries concerning landlord/tenant matters. To assist you, we are pleased to provide
Tenant Rights & Responsibilities 75 College Ave 4 th Floor Rochester, NY 14607 INTRODUCTION The purpose of this booklet is to inform tenants of their rights and responsibilities when they enter a rental
Small Claims Manual (2014) Indiana Judicial Center 30 South Meridian Street, Suite 900 Indianapolis, Indiana 46204-3564 TABLE OF CONTENTS Application of Manual... 1 Important Information About Suing in
A TENANT S GUIDE TO THE NEW YORK CITY HOUSING COURT The Association of the Bar of the City of New York Housing Court Public Service Projects Committee and The Civil Court of the City of New York Fern A.
A Publication of the City of Raleigh Fair Housing Hearing Board Tenants Rights And A Handbook Obligations CITY OF RALEIGH COMMUNITY SERVICES DEPARTMENT The authors of this handbook gratefully acknowledge
The Alaska Landlord & Tenant Act: what it means to you This publication summarizes landlord and tenant rights and obligations under Alaska law. In accordance with Alaska Statute (AS) 44.23.020(b)(9), it
CONTENTS: INTRODUCTION:...3 PART ONE: Moving In...4 I. Choosing a Home...4 II. Security Deposits...5 III. Signing a Lease...5 IV. Moving In...6 PART TWO: Your Responsibilities...7 I. Paying Rent...7 II.
All information contained in this pamphlet is only legal information and is not intended to replace or serve as legal advice. The law may apply differently depending on your location, individual circumstances
NEW YORK CITY TENANTS QUESTIONS & ANSWERS ABOUT HOUSING COURT BRONX BROOKLYN MANHATTAN QUEENS STATEN ISLAND October 2011 Table of Contents What is Housing Court?............................................
Consumer s Guide to New Jersey Law A Free Public Education Service from the New Jersey State Bar Foundation One Constitution Square, New Brunswick, NJ 08901-1500 1-800-FREE LAW www.njsbf.org This bo oklet
Tenants and Landlords a practical guide Dear Friend: This booklet is designed to inform tenants and landlords about their rights and responsibilities in rental relationships. It serves as a useful reference
TURNING 18? SOME THINGS ABOUT THE LAW YOU NEED TO KNOW 1 2 TABLE OF CONTENTS INTRODUCTION...4 VOTING...4 JURY DUTY...5 DRIVING...6 DRINKING LAWS...8 CRIMINAL CHARGES...8 EMPLOYMENT...10 APARTMENT LEASES...11
EARLY CARE & EDUCATION LAW UNIT Publication Date: November 2013 WHAT YOU NEED TO KNOW ABOUT SMALL CLAIMS COURT In the operation of your child care business you may encounter problems which force you to
California Ten a n T s A Guide to ResidentiAl tenants And landlords RiGhts And Responsibilities California Ten a n T s A Guide to ResidentiAl tenants And landlords RiGhts And Responsibilities department
Servicemembers Civil Relief Act (SCRA) Paul. K. Charlton United States Attorney District of Arizona 40 N. Central, Suite 1200 Phoenix, Arizona 85004 Servicemembers Civil Relief Act of 2003 Table of Contents:
The Attorney General s Guide to Manufactured Housing Community Law Commonwealth of Massachusetts Office of the Attorney General Martha Coakley Attorney General November 2011 One Ashburton Place (617) 727-2200
IRS Mission: Provide America s taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all. What You Should
SOUTH CAROLINA BAR Tenants Rights and the Law YOUR AGREEMENT TO RENT The rental agreement should include the amount of rent, the date of the payment and the rights and obligations of the tenant and the
California Tenants A Guide to Residential Tenants and Landlords Rights and Responsibilities Revised July 2012 California Tenants A Guide to Residential Tenants and Landlords Rights and Responsibilities
LEGAL AFFAIRS DIVISION 1625 N. Market Blvd., Suite S-309, Sacramento, CA 95834 www.dca.ca.gov Legal Guide LT-5 OPTIONS FOR A LANDLORD: WHEN A TENANT'S PERSONAL PROPERTY HAS BEEN LEFT IN THE RENTAL UNIT