N.Y. Real Property Actions & Proceedings Law § 1307: Duty to maintain foreclosed property

§ 1307. Duty to maintain foreclosed property. 1. A plaintiff who

commences a mortgage foreclosure action, including a lender, an assignee

or a mortgage loan servicer, seeking a judgment of foreclosure and sale

pursuant to section thirteen hundred fifty-one of this article,

involving residential real property, as defined in section thirteen

hundred five of this article, that is vacant, or becomes vacant after

commencement of the action or the issuance of such judgment, or is

abandoned by the mortgagor but occupied by a tenant, as defined under

section thirteen hundred five of this article, shall maintain such

property until such time as ownership has been transferred through the

closing of title in foreclosure, or other disposition, and the deed for

such property has been duly recorded; provided, however, that if a

municipality or governmental entity holds a mortgage subordinate to one

or more mortgages on the residential real property, the municipality or

governmental entity shall not be subject to the requirements of this

section.

2. Such plaintiff shall have the right to peaceably enter upon such

property, or to cause others to peaceably enter upon the property for

the limited purpose of inspections, repairs and maintenance as required

by this section, or as otherwise ordered by court; provided, however,

that if the property is occupied by a tenant, at least seven days notice

must be given to such tenant, unless emergency repairs are required in

which case reasonable notice shall be provided to the tenant.

(a) A residential property is deemed vacant for the purposes of this

section if the residential property meets the definition of a "vacant

and abandoned residential property" under section thirteen hundred nine

of this article or there is an order or finding by a court of competent

jurisdiction or by the municipality in which the residential property is

located that the property is vacant;

(b) A residential property is deemed abandoned by the mortgagor if:

(i) All owners of the residential property have indicated in writing

that they have abandoned all rights of possession to the residential

property;

(ii) There is an order or finding by a court of competent jurisdiction

or by the municipality in which the residential property is located,

either on the initiative of the court or municipality or in response to

a complaint filed with the court or municipality by a tenant in lawful

occupancy, that the property was abandoned by the mortgagor; or

(iii) The plaintiff receives a complaint from a tenant in lawful

occupancy of the residential property indicating that the owner of the

residential property has ceased maintaining the property and:

(1) The plaintiff posts a notice on the residential property that

would be reasonably visible to the owner of the property indicating that

the property is deemed abandoned and the owner must contact the

plaintiff at a number listed on the notice if the owner still occupies

or claims the right to occupy the property; and

(2) The plaintiff has received no communication within one week of

posting the notice of the owner's intention to occupy the property.

(c) Such plaintiff shall have the right to peaceably enter upon such

property, or to cause others to peaceably enter upon the property for

the limited purpose of inspections, repairs and maintenance as required

by this section, or as otherwise ordered by court; provided, however,

that if the property is occupied by a tenant, at least seven days notice

must be given to such tenant, unless emergency repairs are required in

which case reasonable notice shall be provided to the tenant.

(d) Any plaintiff that enters a residential property without a good

faith basis for believing that the property is vacant or abandoned and

who does not comply with the requirements of paragraph (b) of this

subdivision shall be subject to a penalty of five hundred dollars that

may be sought by the owner of the residential property or any tenant in

lawful possession of such property. This penalty may be recovered by a

property owner or tenant in lawful occupancy of such property either

within the foreclosure action pending against the subject residential

real property or in a separate action commenced to collect the penalty.

3. The municipality in which such residential real property is

located, any tenant lawfully in possession, and a board of managers of a

condominium in which the premises are located or a homeowners

association if said premises are subject to the rules and regulations of

such an association, shall have the right to enforce the obligations

described in this section in any court of competent jurisdiction after

at least seven days notice to the plaintiff in the foreclosure action

unless emergency repairs are required. Any entity acting pursuant to

this subdivision shall have a cause of action in any court of competent

jurisdiction against the plaintiff in the foreclosure action to recover

costs incurred as a result of maintaining the property. The authority

provided by this subdivision shall be in addition to, and shall not be

deemed to diminish or reduce, any rights of the parties described in

this section under existing law against the mortgagor of such property

for failure to maintain such property.

4. In the event the mortgagor of the property commences a proceeding

in bankruptcy court prior to the completion of the public auction

ordered in the judgment of sale, the duties created by this section

shall be suspended during the pendency of the bankruptcy proceeding or

until such time as an order has been entered in that proceeding lifting

or removing the automatic stay of the foreclosure sale.

5. For the purposes of this section "maintain" shall mean keeping the

subject property in a manner that is consistent with the standards set

forth in the New York property maintenance code chapter 3 sections 301,

302 (excluding 302.2, 302.6 and 302.8), 304.1, 304.3, 304.7, 304.10,

304.12, 304.13, 304.15, 304.16, 307.1, and 308.1; provided, however,

that if the property is occupied by a tenant, then such property must

also be maintained in a safe and habitable condition.

6. A plaintiff shall be relieved of its responsibilities to maintain

the residential real property that is the subject of a foreclosure

action for the period that a receiver of such property is serving.

7. Nothing contained in this section shall diminish in any way the

obligations pursuant to any state or local law of the mortgagor of the

property or a receiver of rents and profits appointed in an action to

foreclose a mortgage to maintain the property prior to the closing of

title pursuant to a foreclosure sale.

8. This section shall not preempt, reduce or limit any rights or

obligations imposed by any local laws with respect to property

maintenance and the locality's ability to enforce those laws.