With so many foreclosures occurring these days (although, truthfully, not many around Harrisonburg compared to the rest of the country!), renters can rest a bit easier knowing that a new law has been put into effect to protect them. On May 20th, the government passed a law stating that renters must receive 90-days notice prior to being evicted due to foreclosure on their current rental home. Additionally, renters must be allowed to stay in the home until their lease is up, with two exceptions:
- The new owner wants to occupy the property as a personal residence, and
- There is no month-to-month lease, or there is a lease but state law allows the lease to be terminated at any time upon notice.
According to the National Associations of REALTORS, “The protections of this law apply only to “bona fide” tenants — who have a written contract, the lease was the result of an arms-length transaction, and the rent is not substantially less than the fair market rent for the property. Under any conditions, tenants may still be evicted if they violate the lease terms.”