Bill > S01264

This bill amends New York's real property law to require property owners facing imminent foreclosure (defined as receiving a foreclosure notice with a legal summons and complaint) to proactively disclose this information to current or prospective tenants before renewing or signing a lease agreement. Specifically, the mortgagor must send a copy of the original foreclosure summons and complaint via certified mail at least two weeks before lease negotiations, giving tenants advance warning about the property's potential legal and financial instability. If a property owner fails to provide this required notice, they will be penalized by having to provide a $500 credit against the lease's rental price for each instance of non-disclosure, in addition to potentially facing other legal remedies. The bill aims to increase transparency and protect tenants from unexpectedly losing their housing due to a landlord's foreclosure proceedings by ensuring they have timely information about the property's status.

Justice

https://www.nysenate.gov/legislation/bills/2025/S1264