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• Landlord - Tenant
• Transfers 3.,
• Real Estate and Other Housing
• Foreclosure
• Foreclosure of Residential Residential Or Commercial Property
  
  Foreclosure of Residential Residential Or Commercial Property
  
  Topics on this page:
  
  Effect of Foreclosure Sale on Purchaser and Tenant Notice Required to Terminate Tenancy Notice of Foreclosure Action Notice of Impending Foreclosure Sale Prohibition of Nonjudicial Eviction Notice of Eviction Summary of Required Notices Collection of Rent
  
  Maryland law offers defenses for tenants when the residential or commercial property is foreclosed. This article explains the rights of buyers and renters.
  
  Effect of Foreclosure Sale on Purchaser and Tenant
  
  The purchaser at a mortgage foreclosure sale has the exact same rights and remedies against the tenants of the mortgagor (the occupants’ original property owner) as the mortgagor had, and the occupants have the exact same rights and treatments versus the buyer as they had against their original landlord on the day the mortgage was tape-recorded. So, where the lease precedes the mortgage, a foreclosure sale will not end the lease. Where the tenancy began after the mortgage was taped, the occupants still have particular rights regarding alert of the foreclosure action, the foreclosure sale and any notification of eviction. Read the Law: Md. Code, Real Residential Or Commercial Property § 7-105.8
  
  Notice Required to Terminate Tenancy
  
  Bone fide renters of house are entitled to at least 90 days notice before termination of the tenancy. A lease or tenancy is thought about “authentic” only if the tenant is not the child, spouse or parent of the original property manager, the lease transaction was made at arm’s length (i.e., the lessor and lessee act independently), and the lease is not significantly less than fair market rent for the residential or commercial property (unless the unit’s lease is minimized or funded due to a federal, State, or regional subsidy). Read the Law: Md. Code, Real Residential Or Commercial Property § 7-105.8
  
  If the foreclosed residential or commercial property has not been acquired by an owner who will utilize the residential or commercial property as his primary house (an “owner-occupier”), the new owner acquires the residential or commercial property subject to any leases on the residential or commercial property and need to allow the renter to continue leasing the residential or commercial property until the later of:
  
  - the end of the lease term, or
• 90 days from the date that notification of termination of the tenancy is offered to the renter.
  
  If an owner-occupier purchases the residential or commercial property, he can terminate the tenancy before the end of the lease term, but need to supply the tenant with a 90 day notification of termination. For occupants who are no longer under a lease and leasing at-will or month-to-month, the brand-new residential or commercial property owner, whether an owner-occupier or not, need to provide the renter 90 days notification before the renter has to leave.
  
  NOTE: If the foreclosure sale was marketed as being subject to 1 or more tenancies, those leases are unaffected by the sale, other than the buyer ends up being the landlord, since the date of the sale.
  
  The required 90 day notice should:
  
  1. Remain in writing