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I was renting my friends condo and today was the trustee sale and it was sold. When do i have to move?

Mesa, AZ |

I live in Arizona.

The new owner came by and asked when we could leave. When i said i didnt know but maybe about 8 weeks, since we are actually in the process of purchasing our own home, he said he could not work with that, and that he could do two weeks. What can I do? How long can i legally stay? I even offered to pay rent, but he said no.

Thanks in advance :)
Liz

Attorney Answers 2

Posted

The Protecting Tenants at Foreclosure Act provides that if you have a bona fide lease or tenancy (the tenant is not the mortgagor or the parent, spouse, or child of the mortgagor; the lease or tenancy is the result of an arms-length transaction; and the lease or tenancy
requires rent that is not substantially lower than fair market rent), you do not need to move out at all. The parties who purchase at foreclosure sales are counting on you not know about this federal law.

Accessing this website or receiving an electronic transmission from Nagle Law Group, P.C., or any specific attorney at Nagle Law Group, P.C., does not create an attorney-client relationship or any other duty on the part of Nagle Law Group, P.C. An attorney-client relationship is only created upon an express agreement with an attorney at Nagle Law Group, P.C.

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9 comments

Asker

Posted

As far as a lease is concerned we didn't have anything other than a verbal agreement to pay rent on the first of every month. Are we still protected under the act? since we dont have a lease does that mean we are in a month to month agreement and therefore have a month to move out?

Robert H Nagle

Robert H Nagle

Posted

Were you paying "not substantially lower than fair market rent"? If so, then you could still argue you are protected, requiring a 90 day notice to move out from the new owner. But, let me add that practically speaking, the person who you spoke with may not realize you are willing to pay rent for the 8 weeks you need (since that is often what they get faced with). If that's the case, it may be worth trying to work that out.

Asker

Posted

We were paying lower, probably about 43% lower than fair market rent. I offered to pay rent to him at the current fair market rent for the time we need but still declined insisting on the two weeks.

Robert H Nagle

Robert H Nagle

Posted

Then you have a problem. It still takes them time and money to evict you. But, 8 weeks will be tough if they're not willing to give it to you.

Asker

Posted

how will eviction affect us legally?

Robert H Nagle

Robert H Nagle

Posted

I'm sorry, but I don't know what you mean?

Asker

Posted

Will we have to appear in court? I guess what I am asking is what is the process? I dont really know how it works as its never been an issue before, nor do i know anyone who has ever been in that situation.

Asker

Posted

technically he is my new landlord right? he bought the property and im still here.....since i am a month to month tenant doesnt that mean that he has to give me my months notice to move out?

Robert H Nagle

Robert H Nagle

Posted

First, you would receive a 5 day notice to "quit" the premises. If you don't, then you get served with another 5 day notice and you'll have to appear in court. Since you won't have a defense (no, he's not your landlord; because it appears that you are not protected by the Federal statute, your leasehold interest was wiped out by the foreclosure). From there, I believe another week goes by and then they can forcibly remove you. Overall, it can take a month to get you "out".

Posted

Mr. Nagel is right that you may not have to leave, but you also need to be able to demonstrate the terms of your lease. Do you have a written lease for the condo? How long of a lease is it? Is it for a set time or is it month to month?

Since your new owner has tried to force you out verbally, I would recommend sitting down with a local real estate or landlord/tenant attorney so that you can write an appropriate letter back to the new owner explaining your ability to stay in the house and the terms of the lease you expect him to live by.

Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. I am licensed in Arizona and can only provide general comments on matters outside of Arizona law. Actual legal advice can only be provided after a direct consultation in which all of the relevant facts are considered before providing a response.

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