2023 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.