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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 provides protections for tenants when the residential or commercial property is foreclosed. This post explains the rights of buyers and renters.
  
  Effect of Foreclosure Sale on Purchaser and Tenant
  
  The buyer at a mortgage foreclosure sale has the very same rights and treatments against the renters of the mortgagor (the occupants’ initial landlord) as the mortgagor had, and the tenants have the very same rights and remedies against the buyer as they had against their original property manager on the day the mortgage was tape-recorded. So, where the lease predates the mortgage, a foreclosure sale will not end the lease. Where the tenancy started after the mortgage was tape-recorded, the tenants still have particular rights concerning notification of the foreclosure action, the foreclosure sale and any notice of eviction. Read the Law: Md. Code, Real Residential Or Commercial Property § 7-105.8
  
  Notice Required to Terminate Tenancy
  
  Bone fide occupants of home are entitled to at least 90 days notice before termination of the tenancy. A lease or occupancy is thought about “bona fide” only if the occupant is not the kid, spouse or moms and dad of the original property manager, the lease deal was made at arm’s length (i.e., the lessor and lessee act separately), and the lease is not significantly less than reasonable market rent for the residential or commercial property (unless the unit’s lease is decreased 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 purchased by an owner who will utilize the residential or commercial property as his main house (an “owner-occupier”), the brand-new owner takes belongings of the residential or commercial property subject to any leases on the residential or commercial property and need to allow the occupant to continue renting the residential or commercial property up until the later of:
  
  - the end of the lease term, or
• 90 days from the date that notification of termination of the tenancy is provided to the occupant.
  
  If an owner-occupier purchases the residential or commercial property, he can end the tenancy before completion of the lease term, however must supply the tenant with a 90 day notice of termination. For renters 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, should provide the renter 90 days notification before the renter has to leave.
  
  NOTE: If the foreclosure sale was promoted as being subject to 1 or more occupancies, those leases are untouched by the sale, other than the buyer becomes the property owner, as of the date of the sale.
  
  The required 90 day notification must:
  
  1. Be in composing