N.Y. Real Property Actions & Proceedings Law § 1305: Notice to tenants

§ 1305. Notice to tenants. 1. Definitions. For the purposes of this

section, the following definitions shall apply:

(a) "Residential real property" shall mean real property located in

this state improved by any building or structure that is or may be used,

in whole or in part, as the home or residence of one or more persons,

and shall include any building or structure used for both residential

and commercial purposes.

(b) "Successor in interest" shall mean any person or entity who or

which acquires title in a residential real property as a result of a

judgment of foreclosure and sale, or other disposition during the

pendency of the foreclosure proceeding, or at any time thereafter but

prior to the expiration of the time period as provided for in

subdivision two of this section.

(c) "Tenant" shall mean any person who appears as a lessee on a lease

of one or more dwelling units of a residential real property that is

subordinate to the mortgage on such residential real property; or who at

such time is a party to an oral or implied rental agreement with the

mortgagor and obligated to pay rent to the mortgagor or such mortgagor's

representative, for the use or occupancy of one or more dwelling units

of a residential real property.

2. Notwithstanding any other provision of law, a tenant of a unit not

subject to rent control or rent stabilization shall have the right to

remain in occupancy of the unit of the subject residential real property

where he or she resides on the date of service of the notice required by

subdivision three of this section for the greater of: (a) a period of

ninety days from the date of the service of such notice; or (b) for the

remainder of the lease term if the tenant occupied the premises at the

commencement of the foreclosure action or received a notice pursuant to

section thirteen hundred three of this article; or (c) for the remainder

of the lease term, provided that the lease agreement was entered into in

good faith pursuant to this section and federal law, up to a maximum of

three years, for tenants who did not occupy the premises at the

commencement of the foreclosure action and therefore did not receive the

original notice of service required pursuant to section thirteen hundred

three of this article; provided that if a successor in interest who

acquires title to such residential real property intends to occupy a

single unit as his or her primary residence and the unit is not subject

to a federal or state statutory system of subsidy or other federal or

state statutory scheme, the successor may limit for one unit only, the

tenant's right of occupancy to ninety days. For a lease to qualify under

this subdivision, the tenant under such lease may not be the owner of

the residential real property, and such lease must require the payment

of rent for such unit that is not substantially less than the fair

market rent for the unit, unless the unit is subject to federal or state

statutory system of subsidy or other federal or state statutory scheme.

A tenant under paragraph (a), (b), or (c) of this subdivision shall

continue such tenancy subject to any limitations in this subdivision

under the same terms and conditions as were in effect at the time of

entry of the judgment of foreclosure and sale, or if no such judgment

was entered, upon the terms and conditions that were in effect at the

time of the transfer of ownership of such property. For purposes of this

section, "fair market rent" shall mean rent for a unit of residential

real property of similar size, location and condition.

3. Notwithstanding any other provision of law, and consistent with

subdivision two of this section, a successor in interest of residential

real property shall provide written notice to all tenants in the same

manner as required by subdivision four of section thirteen hundred three

of this article: (a) that they are entitled to remain in occupancy of

such property for the remainder of the lease term, or a period of ninety

days from the date of mailing of such notice, whichever is greater, on

the same terms and conditions as were in effect at the time of entry of

the judgment of foreclosure and sale, or if no such judgment was

entered, upon the terms and conditions as were in effect at the time of

transfer of ownership of such property; and (b) of the name and address

of the new owner. Any person or entity who or which becomes a successor

in interest after the issuance of the ninety-day notice provided for in

this subdivision, shall notify all tenants of its name and address and

shall assume such interest subject to the right of the tenant to

maintain possession as provided in this subdivision.

4. Acceptance of rental payments by any successor in interest on terms

provided in subdivision three of this section shall not affect the right

of the successor in interest to evict such tenant, as provided by law,

upon the expiration of the time period as provided in subdivision two of

this section or earlier if the tenant does not pay rent pursuant to any

lease or oral or implied rental agreement in effect at the time of

issuance of the judgment of foreclosure, or if no such judgment was

issued, upon the terms and conditions as were in effect at the time of

transfer of ownership of such property.

5. The rights conferred upon a tenant by subdivision two of this

section shall be in addition to any other rights of such tenant, under

law, including those rights conferred upon: (a) any tenant not named in

the foreclosure action; or (b) any tenant whose tenancy is subsidized by

the federal government, this state or any political subdivision of this

state; or (c) any tenant whose tenancy is subject to rent control, rent

stabilization, or federal statutory schemes.