Are tenants protected by PTFA for the person buying a house from a bank
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Are tenants protected by PTFA for the person buying a house from a bank
My wife and I are purchasing a house from a bank. There are tenants in the house
right now. Are we require to give them a 90 day notice per the PTFA, or since we
are not the ‘immediate successor’ the bank is, does it not apply to us?
Asked on December 25, 2018 under Real Estate Law, Michigan
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
You still must give them 90 days notice: the PFTA provides that if the immediate successor (e.g. bank) sells to someone who intends to occupy the home, 90 days notice must be provided. It makes sense that this would be the case: otherwise, the act's protections could be sidestepped by the bank purchasing in foreclosure, then immediately selling the house to someone else.
Note that only bona fide tenants--people who had paid rent and had a lease, whether written or oral--are protected: squatters, former significant others of the house's owners or their children, parents, other relatives, etc. who were allowed to live there are not protected.
Note also that 90 days is the minimum notice required: if they have a still-in-effect (unexpired) lease with more than 90 days left on it, they get at least until the end of the lease.
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