We protected our interest at a Master Commissioner Sale this morning and will be getting the property deeded in the bank’s name in a few days. At the present time we believe that there is a renter in the property. I know that we must give them 90 days notice after the property is in our name before any evection can take place assuming there is no lease. Is there a specific method required to notify the renter that they have 90 days? Does the notice have to be delivered by certified mail or could we leave a copy of the notice on the front door or maybe both. Also, would we be in our right in the letter to notify the renter that all rents would come directly to us once the property is in our name until they move out and are we bound by what the renter says he is paying for rent if there is no rental agreement. I assume that once the property is in our name we would be entitled to all rental income. Please let me know your thoughts.
The Protecting Tenants at Foreclosure Act (PTAFA) does not have any implementing regulations or model forms. All we have is the bare bones requirements of the law.
The law does not specify any particular method of notice, but err on the side of caution and provide the notice in every way possible; the expense is negligible. The law does not address whether other notice information may be included in the notice or not. I suggest using one form for the PTAFA notice and include other information, such as the party to whom the payments are now payable, on a separate notice.
You need to consult with your legal counsel regarding issues related to the lack of a rental agreement. If there is no rental agreement the arrangement may not be a bona fide lease or tenancy, and then PTAFA may not apply.