SB 361
Modifies requirements for notifying tenants of foreclosures, authorizes certain damages for forcible entry, and requires certain damages for withholding security deposits
LR Number:
Last Action:
3/3/2011 - Second Read and Referred S General Laws Committee
Journal Page:
Calendar Position:
Effective Date:
August 28, 2011

Current Bill Summary

SB 361 - Currently, in cases where a foreclosed property is occupied by a residential tenant whose lease is not void due to certain illegal uses of the premises, the new owner of the property must give the occupant of the property notice that the foreclosure sale has occurred, that they are the new owner of the property, and if the new owner seeks possession of the property, that the occupant has ten business days from the date of the notice to vacate the premises. This act gives the occupant ninety days to vacate the premises, rather than ten business days. No unlawful detainer action or other action seeking possession of the premises may begin against the occupant until ninety days after the date the occupant is given notice that the foreclosure sale occurred.

When a court finds that a landlord or the landlord's agent removed or excluded a tenant from rental property without a court order, the tenant is authorized to receive all damages caused by the landlord excluding them from the property. These damages can include, prepaid rent, moving expenses, loss of utility deposits, loss of credit, damage to the tenant's rental history, damages for physical and emotional distress, and attorneys' fees.

Currently, if a landlord wrongfully withholds a security deposit, the tenant recovers no more than twice the amount wrongfully withheld. This act requires that the tenant recover exactly twice the amount wrongfully withheld.