Bill would provide Miami real estate renters rights

If a planned bill gets passed in the Florida Legislature, renters who are caught up in Florida foreclosures or short sales in  may get more time to get out of their Miami real estate property before the sheriff shows up to evict them.

On Tuesday, the bill (HB 125) is sponsored by state Representative Hazelle Rogers, D-Lauderhill, and co-sponsored by state Representative Darren Soto, D-Orlando, is scheduled to be taken by the Civil Justice & Courts Policy Committee.

Soto, an attorney who is defending more than 250 Florida foreclosures cases, said tenants often get served the same paperwork from the bank as the owner which causes stress and confusion.

Soto said, “They basically receive a complaint, but it doesn’t tell them their rights, other than that they have to respond. They don’t know to not pay the rent or to pay the rent, and their landlord is usually pretty mum.”

However, some worry that the bill could limit owner rights by requiring the owner or lender to give the tenant first right of refusal to buy the Miami real estate property.

Stephen Weiss, VP of business development for Foreclosure Response Team, a private company specializing in short sales says, “A lease with a tenant has a beginning and an end date. It doesn’t give tenants a right or obligation to own my property. This is hindering and impairing on the value of real estate.”

The bill:

• Requires lenders to notify tenants or lessees of potential foreclosure or short-sale actions against Miami real estate rental property.
• Requires lenders to provide tenants or lessees first right of refusal to purchase property at fair market value, and specifies eligibility requirements to exercise such right.
• Requires lenders to use escrow funds for specified purposes.
• Specifies lender liability for closing or relocation costs for failure to comply with notice requirements.
• Specifies time restrictions on tenants or lessees bringing actions for damages.

President of the Foreclosure Response Team, Scott Coloney, added that if the tenant is awarded the first right of refusal, it could prolong short sales, which are already long, creating problems for buyers.

The provision that requires the lender to give notice, however, he did like agreeing that it was one less thing that the landlord has to do.

Contributed by MLR Realty