Recently enacted Public Act 11-201 provides protections for tenants of foreclosed homes in Connecticut. The lender in a foreclosure action must now take title subject to the rights of "bona fide" tenants. Tenants with month-to-month leases must be given at least 90 days notice before eviction. "Bona fide" tenants who entered into a lease before the lender takes title must be allowed to remain until the end of the lease term, unless the lender sells the property to a buyer who will occupy it as his or her primary residence.
Courtesy of Steve Maggiola's "Title Tidbits."
In order to have a "bona fide" tenancy which qualifies for this protection, the tenant cannot be the mortgagor's child, spouse, or parent, and the lease must be the result of an arms-length transaction at a fair market rent.
The Act specifies that these provisions do not affect the termination requirements for any federal or state subsidized housing.
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