2012 New York Consolidated Laws
RPA - Real Property Actions & Proceedings
Article 13 - (1301 - 1391) ACTION TO FORECLOSE A MORTGAGE
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 at the time the notice required
  by subdivision four of section thirteen hundred three  of  this  article
  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 mailing 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 mailing of such notice; or (b) for  the
  remainder  of  the  lease term; 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) or (b) of this subdivision shall continue
  such tenancy 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: (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.