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• Landlord - Tenant
• Transfers 3.,
• Real Estate and Other Housing
• Foreclosure
• Foreclosure of Residential Residential Or Commercial Property
  
  Foreclosure of Residential Residential Or Commercial Property
  
  Topics on this page:
  
  Effect of Foreclosure Sale on Purchaser and Tenant Notice Required to Terminate Tenancy Notice of Foreclosure Action Notice of Impending Foreclosure Sale Prohibition of Nonjudicial Eviction Notice of Eviction Summary of Required Notices Collection of Rent
  
  Maryland law offers securities for occupants when the residential or commercial property is foreclosed. This short article explains the rights of purchasers and renters.
  
  Effect of Foreclosure Sale on Purchaser and Tenant
  
  The buyer at a mortgage foreclosure sale has the same rights and treatments against the occupants of the mortgagor (the renters' initial landlord) as the mortgagor had, and the tenants have the exact same rights and remedies versus the buyer as they had against their initial property owner on the day the mortgage was taped. So, where the lease precedes the mortgage, a foreclosure sale will not end the lease. Where the occupancy started after the mortgage was tape-recorded, the renters still have particular rights concerning alert of the foreclosure action, the foreclosure sale and any notice of eviction. Read the Law: Md. Code, Real Residential Or Commercial Property § 7-105.8
  
  Notice Required to Terminate Tenancy
  
  Bone fide occupants of house are entitled to a minimum of 90 days notice before termination of the occupancy. A lease or occupancy is considered "bona fide" only if the renter is not the child, partner or parent of the original property owner, the lease transaction was made at arm's length (i.e., the lessor and lessee act separately), and the lease is not significantly less than reasonable market lease for the residential or commercial property (unless the unit's lease is decreased or supported due to a federal, State, or regional aid). Read the Law: Md. Code, Real Residential Or Commercial Property § 7-105.8
  
  If the foreclosed residential or commercial property has actually not been acquired by an owner who will use the residential or commercial property as his main house (an "owner-occupier"), the brand-new owner takes possession of the residential or commercial property subject to any leases on the residential or commercial property and must enable the tenant to continue leasing the residential or commercial property till the later of:
  
  - the end of the lease term, or
• 90 days from the date that notice of termination of the tenancy is provided to the occupant.
  
  If an owner-occupier purchases the residential or commercial property, he can terminate the occupancy before completion of the lease term, however must offer the occupant with a 90 day notice of termination. For tenants who are no longer under a lease and leasing at-will or month-to-month, the brand-new residential or commercial property owner, whether an owner-occupier or not, need to give the renter 90 days notification before the tenant needs to leave.
  
  NOTE: If the foreclosure sale was advertised as undergoing 1 or more occupancies, those leases are untouched by the sale, other than the purchaser ends up being the property manager, since the date of the sale.
  
  The required 90 day notice must:
  
  1. Be in composing