Update on Protecting Tenants at Foreclosure Act of 2009 (“PTFA”)
On May 24, 2018, Senate Bill 2155 became Public Law No: 115-174. One important provision contained in the new law brings back the Protecting Tenants at Foreclosure Act of 2009 (hereinafter “PTFA”). The key provision of the reinstated law allows tenants to remain in a rental property until the end of their leases unless:
• the property is sold to a purchaser that will use the property as a primary residence, or
• there is no lease/a lease is terminable by state law.
Even under these two exceptions, the tenants must still receive a minimum of ninety (90) days’ notice before being evicted from the property. The protections under the law only apply to bona fide tenants.
In cases where a bona fide tenant remains in the property, you may send a notice to the tenant to make payments to you in accordance with the terms of the lease. Any failure to honor the terms of the lease, may permit you to send a rent demand and potentially evict the tenants. The reinstatement of the PTFA takes effect thirty (30) days from the signing of the bill into law.
The attorneys of ALAW remain well attuned to our ever-changing legal landscape and are prepared to provide you with unparalleled representation every step of the way.
For more information on this legal update please contact:
Michael Spicer, Esq.
Managing Attorney – North Carolina