Free Foreclosure Seminar - Suffolk Bar

Yes, tenants must pay rent during foreclosure

While case law was established over a year ago, we consistently get

The Question: If I am in foreclosure, how can I make my tenants pay their rent?

The Answer: Bring a summary proceeding pursuant to RPAPL Article 7.

Yet, if a receiver is appointed in a foreclosure action, the receiver & not the owner should bring the action.

In General Elec. Capital Corp. v. Loretto-Utica Residential Health Care Facility, the Court held that landlord's default does not relieve tenants responsibility to pay rents.

It should be noted that some Counties, like Suffolk, require the landlord to provide notice to the tenants if they are in foreclosure. Yet, this has nothing to do with the requirement to pay rent.

Real Estate Conveyances Now Digitally Recorded, or at least soon...

On September 23, 2011, the Governor signed a new law affecting the recording of real property conveyances.

Pursuant to the law, a digital or electronic record should be accepted by the recording office as originals, including a digital copy of a notarization.

This is a great law and should be viewed as a sign that government is becoming more efficient and effective. As records become completely electronic, transaction and storage costs will be reduced while access and organization will be enhanced. Hopefully, this law is a trend and only the start to government embracing technology. Next up, lets get Court conferences by web to reduce unnecessary costs on clients for attorneys to wait 3 hours for a 5 minute scheduling meeting. The technology is there, lets start to use it.

Interestingly, the law doesn't apply to leases for a term of 3 years or less, Wills, and Powers to Convey.

WARNING - This new law doesn't take effect until 365 days after its enactment and it requires regulations prior to its use.