NY Real Prop Actions L § 1305 (2021)
2021 New York Laws RPA - Real Property Actions and Proceedings Article 13 - 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 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 service 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 service of such notice; or (b) for the remainder of the lease term if the tenant occupied the premises  at  the commencement  of the foreclosure action or received a notice pursuant to section thirteen hundred three of this article; or (c) for the remainder of the lease term, provided that the lease agreement was entered into in good faith pursuant to this section and federal law, up to a maximum  of three  years,  for  tenants  who  did  not  occupy  the  premises at the commencement of the foreclosure action and therefore did not receive the original notice of service required pursuant to section thirteen hundred three of this article; 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),  (b), or (c) of this subdivision shall continue such tenancy subject to any  limitations  in  this  subdivision 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 in the same manner as required by subdivision four of section thirteen hundred three of this article: (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.