[RPPTL LandTen] Effect of Foreclosure of Commercial Property on Leases

Thu Jul 9 11:43:47 PDT 2015

In our scenario, none of the tenants were names as defendants, but all leases were either entered into after the mortgage or were self-subordinating to any mortgage placed on the property

From: landten-bounces at lists.flabarrpptl.org [mailto:landten-bounces at lists.flabarrpptl.org] On Behalf Of James Glover
Sent: Thursday, July 09, 2015 2:37 PM
To: RPPTL Landlord Tenant Committee
Subject: Re: [RPPTL LandTen] Effect of Foreclosure of Commercial Property on Leases

We had a recent appeal on a similar issue, and we cited to these cases. Unfortunately, neither directly supports your client's argument. 

Redding v. Stockton, Whatley, Davin & Co., 488 So. 2d 548, 549 (Fla. 5th DCA 1986), cause dism’d, 492 So. 2d 1334 (Fla. 1986)

Riley v. Grissett, 556 So. 2d 473, 475-76 (Fla. 1st DCA 1990) 

If the tenant is joined as a defendant in the foreclosure and is foreclosed in the judgment, then his/her tenancy is terminated once the foreclosure sale occurs. However, (as appeared in our case)  if the tenant is not joined in the foreclosure, then their tenancy survives the foreclosure, unless other equitable factors come into play (Riley).

Hope this helps. 

Sincerely, 

James

--

James Glover

c: 954.254.0436

e:  <mailto:GloverJamesR at gmail.com> GloverJamesR at gmail.com

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On Thu, Jul 9, 2015 at 2:33 PM, Manuel Farach <MFarach at richmangreer.com> wrote:

Les,

I haven't seen any cases overturning that general principle. Specific facts in individual cases may, however, lead to a different result 

Sent from my iPhone

On Jul 9, 2015, at 10:38 AM, lesstevens <lesstevens at earthlink.net> wrote:

Has anyone heard of any recent cases which would overturn the premise that upon foreclosure of a commercial mortgage, absent an SNDA or self-subordination language, a commercial lease is terminated and becomes month-to-month or tenant at sufferance?

Les H. Stevens, Esquire
Les H. Stevens, P.A.
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E-Mail - lesstevens at earthlink.net

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