As Introduced

127th General Assembly
Regular Session
2007-2008
H. B. No. 626


Representatives Celeste, Foley 

Cosponsors: Representatives Beatty, Yuko, Harwood, Williams, B., Ujvagi, Slesnick, Skindell, Letson, Newcomb, Stewart, D., Hagan, R., Williams, S., Heard, Mallory, Setzer, Lundy 

A BILL
To amend section 2329.26 and to enact section 1
5321.20 of the Revised Code to specify that, upon 2
proper notice, a rental agreement for a 3
residential property that is the subject of a 4
foreclosure action converts to a month-to-month 5
rental agreement unless that residential rental 6
agreement was entered into after the initiation 7
of foreclosure proceedings and notice of an 8
ongoing foreclosure action and subsequent sale 9
date is not provided, and to create penalties 10
for a landlord or a successor in interest who 11
violates the bill's provisions.12


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That section 2329.26 be amended and section13
5321.20 of the Revised Code be enacted to read as follows:14

       Sec. 2329.26.  (A) Lands and tenements taken in execution 15
shall not be sold until all of the following occur:16

       (1)(a) Except as otherwise provided in division (A)(1)(b) of 17
this section, the judgment creditor who seeks the sale of the18
lands and tenements or the judgment creditor's attorney does both 19
of the following:20

       (i) Causes a written notice of the date, time, and place of 21
the sale to be served in accordance with divisions (A) and (B) of22
Civil Rule 5 upon the judgment debtor and upon, each other party 23
to the action in which the judgment giving rise to the execution 24
was rendered, and, if the lands and tenements are residential 25
property, any tenant residing in the residential property who is 26
not a party to the action;27

       (ii) At least seven calendar days prior to the date of the 28
sale, files with the clerk of the court that rendered the judgment 29
giving rise to the execution a copy of the written notice 30
described in division (A)(1)(a)(i) of this section with proof of 31
service endorsed on the copy in the form described in division (D) 32
of Civil Rule 5.33

       (b) Service of the written notice described in division34
(A)(1)(a)(i) of this section is not required to be made upon any35
party who is in default for failure to appear in the action in 36
which the judgment giving rise to the execution was rendered.37

       (2) The officer taking the lands and tenements gives public 38
notice of the date, time, and place of the sale for at least 39
three weeks before the day of sale by advertisement in a40
newspaper published in and of general circulation in the county. 41
The court ordering the sale may designate in the order of sale 42
the newspaper in which this public notice shall be published, and 43
this public notice is subject to division (A) of section 2329.2744
of the Revised Code.45

       (3) The officer taking the lands and tenements shall collect 46
the purchaser's information required by section 2329.271 of the 47
Revised Code.48

       (B) A sale of lands and tenements taken in execution may be 49
set aside in accordance with division (B) of section 2329.27 of 50
the Revised Code.51

       (C) The written notice this section requires shall be served 52
to a tenant of a residential property at the address of that 53
property at least thirty days before the sale date.54

       (D) "Tenant" has the same meaning as in section 5321.01 of 55
the Revised Code.56

       Sec. 5321.20. (A) Except as provided in division (B) of this 57
section, any rental agreement for a residential property that is 58
the subject of a foreclosure action shall convert to a 59
month-to-month rental agreement upon the approval of a sale at 60
auction by a court pursuant to section 2329.33 of the Revised 61
Code.62

        (B) If a tenant enters into a rental agreement after 63
foreclosure begins and the tenant is not provided the notice of a 64
foreclosure action as division (C) of this section requires or 65
the notice of sale as division (D) of this section requires, an 66
owner who purchases the property at auction shall, within 67
fourteen days after that purchase, offer to honor the existing 68
rental agreement. If the tenant does not accept that offer within 69
fourteen days, the rental agreement shall convert to a 70
month-to-month rental agreement.71

       (C)(1) Any landlord of a residential property that is the 72
subject of a foreclosure action shall provide each tenant at that 73
property with written notice of the foreclosure action. The notice 74
shall include a statement in substantially the following form:75

       "This property is undergoing foreclosure. For more 76
information on this action, you should contact the ..........(your 77
county) Clerk of Courts for the Court of Common Pleas, 78
..........(address), at ..........(phone number).79

       A sale at auction may or may not occur as a result of this 80
foreclosure. Currently, the sale of this property has been set for 81
..........(time, date, and place) or no date for sale of this 82
property has been established. You will receive written notice of 83
the sale at least thirty days before it takes place.84

       If there is a sale of this property at auction, the following 85
will occur:86

       If you entered into your rental agreement before 87
...............(date the foreclosure action was initiated), your 88
current rental agreement converts to a month-to-month tenancy 89
upon the sale of the property.90

       If you entered into your rental agreement after 91
.............. (date the foreclosure action was initiated) and the 92
agreement included a notice of the foreclosure, your rental 93
agreement will become a month-to-month rental agreement on the 94
date a court approves the sale. The new owner may offer to honor 95
your current rental agreement but is not required to do so. You 96
may accept or reject any such offer.97

       If you entered into your rental agreement after 98
............... (date the foreclosure action was initiated) and 99
the agreement did not include a notice of the foreclosure, 100
within fourteen days after purchasing the home the new owner 101
must give you a written offer to honor your current rental 102
agreement. If you do not accept that offer, your rental 103
agreement will become a month-to-month agreement.104

        Note: With a month-to-month rental agreement, either the 105
tenant or the landlord may terminate the agreement by providing 106
written notice of termination to the other at least thirty days 107
prior to a date on which the rent payment normally is due. The 108
rental agreement then terminates on that date."109

       (2) If the rental agreement is entered into before the 110
foreclosure action is initiated, the landlord shall provide the 111
written notice of foreclosure within thirty days after the 112
foreclosure action is filed. If the rental agreement is entered 113
into after the foreclosure action is initiated, the landlord shall 114
include the written notice of foreclosure in the rental agreement.115

        (D) Any landlord of a residential property that is the 116
subject of a foreclosure action shall provide each tenant at that 117
property written notice of the date, time, and place of the sale 118
of the foreclosed property at least thirty days before the sale 119
date. 120

       (E) In addition to any other remedy under law, a tenant may 121
recover the greater of actual damages or one month's rent plus the 122
security deposit amount and reasonable attorney's fees, obtain 123
injunctive relief to enforce the rental agreement, or both, if a 124
landlord or a successor in interest does either of the following:125

        (1) Fails to honor a rental agreement as divisions (A) and 126
(B) of this section require;127

        (2) Fails to provide the written notices that divisions (C) 128
and (D) of this section require.129

       Section 2. That existing section 2329.26 of the Revised Code 130
is hereby repealed.131