What we verified in “Tenant rights when the building is sold or foreclosed”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. Under the Protecting Tenants at Foreclosure Act (section 702 of Public Law 111-22, note to 12 U.S.C. §5220), in a foreclosure on a federally related mortgage loan or on any residential property, whoever takes the property must give each bona fide tenant a notice to vacate at least 90 days in advance; if you have a bona fide lease signed before the notice of foreclosure, you can stay until it ends, unless the home is sold to someone who will live in it as a primary residence, and even then you get the 90-day notice; if you have no lease or one terminable at will, you also get the 90-day notice; and the law does not change the rules for subsidized housing or state or local laws that give more time or protection.

   Sources 1 · Pub. L. 111-22, div. A, title VII, §702(a), set out as a note under 12 U.S.C. §5220: 'a notice to vacate to any bona fide tenant at least 90 days before the effective date of such notice'; 'under any bona fide lease entered into before the notice of foreclosure to occupy the premises until the end of the remaining term of the lease, except that a successor in interest may terminate a lease effective on the date of sale of the unit to a purchaser who will occupy the unit as a primary residence, subject to the receipt by the tenant of the 90 day notice'; 'without a lease or with a lease terminable at will under State law'; 'nothing under this section shall affect the requirements for termination of any Federal- or State-subsidized tenancy or of any State or local law that provides longer time periods or other additional protections' · Checked October 31, 2026

2. Under the same law, a lease or tenancy is bona fide only if the tenant is not the owner who owed the mortgage or that owner's child, spouse or parent; the lease was the result of an arms-length transaction; and the rent is not substantially less than fair market rent, or is reduced by a federal, state or local subsidy; and the date of the notice of foreclosure is the date complete title passes to the new owner by court order or under the mortgage.

   Sources 1 · Pub. L. 111-22, §702(b): 'the mortgagor or the child, spouse, or parent of the mortgagor under the contract is not the tenant'; 'the result of an arms-length transaction'; 'rent that is not substantially less than fair market rent for the property or the unit’s rent is reduced or subsidized'; §702(c): 'the date of a notice of foreclosure shall be deemed to be the date on which complete title to a property is transferred to a successor entity or person' · Checked October 31, 2026

3. According to the official notes to the U.S. Code, the date on which this law was set to end (December 31, 2014) was repealed by Public Law 115-174 in 2018, which restored section 702 as in effect on December 30, 2014.

   Sources 1 · 12 U.S.C. §5220 note: 'Section 704 of Pub. L. 111–22 ... which provided that title VII ... terminated, effective Dec. 31, 2014, was repealed by Pub. L. 115–174, title III, § 304(a)'; 'Section 702 of Pub. L. 111–22 ... as in effect on Dec. 30, 2014, restored and revived, see section 304(b) of Pub. L. 115–174' · Checked October 31, 2026

4. Under the federal voucher program law (42 U.S.C. §1437f(o)(7)(F)), in a foreclosure on a property where a housing choice voucher holder lives, whoever takes the property takes it subject to the lease with the prior owner and to the housing assistance payments contract with the public housing agency, without overriding state or local laws that give more protection.

   Sources 2 · 42 U.S.C. §1437f(o)(7)(F): 'In the case of any foreclosure on any federally-related mortgage loan ... or on any residential real property in which a recipient of assistance under this subsection resides, the immediate successor in interest in such property pursuant to the foreclosure shall assume such interest subject to the lease between the prior owner and the tenant and to the housing assistance payments contract between the prior owner and the public housing agency'; 'shall not affect any State or local law that provides longer time periods or other additional protections' · Checked October 31, 2026

5. According to the California courts, after a foreclosure you usually get a notice of at least 90 days before you have to move; if you have a fixed-term lease, the new owner generally must honor it; a foreclosure by itself is not just cause under the Tenant Protection Act of 2019, with exceptions; you should keep paying rent on time to the new owner or manager, but verify they are the legal owner because scammers pose as owners, and set the rent aside if you get no notice; you can record a Request for Notice with the county recorder to be notified of a foreclosure; and the new owner must return your deposit if the prior owner did not.

   Sources 3 · California Courts Self-Help Guide, Tenants' rights in a foreclosure: 'you usually get a notice giving you at least 90 days before you have to move'; 'If you have a fixed-term lease (like a year), they generally must honor the lease'; 'a foreclosure, by itself, is not just cause'; keep paying rent to the new owner or property manager, verify the legal owner because scammers pose as owners, set the rent aside if you get no notice; 'This form asks that you be notified of any foreclosure proceedings'; 'The new owner must return your security deposit if the prior owner did not return it before the foreclosure' · Checked October 31, 2026

6. According to the Texas State Law Library, when a property changes ownership, the new owner is bound by the terms of the existing lease; if the lease does not say it ends when the property is sold, the owner generally cannot remove you or change the lease; and when the lease ends, the new owner can renew it, change the rent or change the terms.

   Sources 4 · Texas State Law Library, Legal FAQs, landlord-tenant property sale (updated May 16, 2024): 'When a property changes ownership, the new owner is bound by the terms of the existing lease'; 'If the lease does not say that it will end if the property is sold' the owner generally cannot remove the tenant or change the lease; at expiration 'the new owner can choose to renew the lease, adjust the rent amount' · Checked October 31, 2026

7. Under the Texas Property Code (section 92.105), if the owner's interest in the property ends by sale, assignment, death, bankruptcy or otherwise, the new owner is liable for returning deposits from the date title is acquired and must give you a signed statement that it is responsible for your deposit, with the exact amount; the prior owner remains liable until the new owner receives or assumes the deposit; and this rule does not apply to a mortgage lienholder that takes title by foreclosure.

   Sources 5 · Tex. Prop. Code §92.105(a): 'the new owner is liable for the return of security deposits according to this subchapter from the date title to the premises is acquired'; (b): 'a signed statement acknowledging that the new owner has acquired the property and is responsible for the tenant's security deposit and specifying the exact dollar amount'; (b-1): liable 'until the new owner has received the deposit or has assumed the liability'; (c): 'does not apply to a real estate mortgage lienholder who acquires title by foreclosure' · Checked October 31, 2026

8. Under the Texas Property Code (section 92.201), the landlord must give you the name and an address of the owner shown in the county deed records and, if an off-site company manages the property, that company's name and address; if you ask, it must give you the information in writing or post it by the seventh day after receiving your request, unless it is already in your lease or written rules.

   Sources 5 · Tex. Prop. Code §92.201(a): 'the name and either a street or post office box address of the holder of record title, according to the deed records in the county clerk's office'; 'the name and street address of the management company'; (b): 'on or before the seventh day after the day the landlord receives the tenant's request'; 'including the information in a copy of the tenant's lease or in written rules' · Checked October 31, 2026

9. Under the Florida Statutes (section 83.49(7)), when title to a rental property is sold or transferred, all security deposits and advance rents must pass to the new owner, with earned interest and an accurate accounting of each tenant's amount; and the new owner is presumed to have received the deposit from the prior owner, but that presumption is limited to one month's rent.

   Sources 6 · Fla. Stat. §83.49(7) (2026): 'Upon the sale or transfer of title of the rental property from one owner to another ... any and all security deposits or advance rents being held for the benefit of the tenants shall be transferred to the new owner or agent, together with any earned interest and with an accurate accounting'; 'There is a rebuttable presumption that any new owner or agent received the security deposit from the previous owner or agent; however, this presumption is limited to 1 month’s rent' · Checked October 31, 2026

10. According to the Legal Services Corporation (LSC), it is an independent nonprofit established by Congress to fund civil legal aid for low-income Americans, it funds organizations in every state, the District of Columbia and the territories, and on its website you enter an address or city to find the nearest organization.

    Sources 7 · I Need Legal Help: 'LSC is an independent nonprofit established by Congress in 1974 to provide financial support for civil legal aid to low-income Americans'; 'in every state, the District of Columbia, and U.S. Territories'; 'enter an address or city below to find an LSC-funded legal aid organization near you' · Checked October 31, 2026

11. According to the CFPB, the counseling agencies in its search tool are approved by HUD and offer independent advice, often at little or no cost, on buying a home, renting, defaults, forbearances, foreclosures and credit; you search by ZIP code; and not every agency offers every service.

    Sources 8 · Find a Housing Counselor: 'approved by the U.S. Department of Housing and Urban Development (HUD)'; 'offer independent advice, often at little or no cost to you'; 'buying a home, renting, defaults, forbearances, foreclosures, and credit issues'; 'Search by ZIP code'; 'Not every housing counselor offers all services' · Checked October 31, 2026