THE LEGISLATURE SHOULD RESTORE TWO-MONTH-NOTICE PROTECTION TO COMMERCIAL TENANTS IN FORECLOSURE

By Paul Birnberg, paulrainerbirnberg@gmail.com

As discussed here, from 1984 to 2008, when a tenant’s landlord was foreclosed, the tenant’s lease was cancelled but the new owner (the foreclosing lender) had to give the tenant one-month notice of termination. From 2008 to 2011, that notice period was extended to two months. Starting in 2011 residential tenants got considerably more protection but commercial tenants lost all their protection as an unintended consequence of the way the new residential-tenant statute was written. The two-month protection for commercial tenants should be restored.

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