Can I Continue to Accept Rent if the Property is in Foreclosure?
Many times landlords fall behind on mortgage payments where tenants reside or conduct business. In the event a foreclosure is filed, can the landlord continue to accept rent? If so, what if the tenant fails to make the payments? Florida law provides that the landlord can continue to accept rent even though the property is in foreclosure and the bank is no longer accepting payments.
In fact, if the tenant refuses to continue to pay because the property is in foreclosure, the landlord can give proper notice and evict the tenant. If the tenant is not paying because of a defect in the property, that prohibits the tenant from residing or operating the business in a habitable manner, the tenant may be able to vacate the premises and terminate the lease.
From a moral perspective, it may be best to inform a potential tenant that foreclosure has been filed if the tenant has not yet entered into the lease. The notification should be made in writing in the event the tenant tries to claim that the landlord failed to disclose or notify of the property's true status.
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Greg Gilbert
Keith Maynard
