We would like to rent an apartment from a condominium owner but are worried about our rights if he sells his unit or is foreclosed on. Are we protected in case of a sale if we sign a one-year lease? And what happens if he can't pay his mortgage and foreclosure proceedings are filed?
"Typically, when property is sold, the buyer takes the property, subject to any existing leases and tenancies," said Glenn H. Spiegel, a Manhattan real estate lawyer.
But when a foreclosure occurs, there are a number of ways it could impact a tenancy.
When the occupant is a regulated tenant, a foreclosure usually won't end that status.
A free-market lease, on the other hand, would be prematurely terminable if the tenant is named as a party to the foreclosure litigation as someone with an interest in the property and is served with a copy of the papers.
"As a practical matter, it can take quite a bit of time for the foreclosure process to reach a conclusion," Mr. Spiegel added. "Thus, if no case has been started, it is unlikely that the letter writer's one-year lease would be impacted in the event of a mortgage default."
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To view the original article, please use this link: Spiegel in the Times!