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To enact sections 121.086, 2703.10, 5321.20, 5321.21, | 1 |
5321.22, and 5321.23 of the Revised Code to | 2 |
require a clerk of courts to notify tenants when a | 3 |
foreclosure action is filed, to require the | 4 |
Director of Commerce to prepare a publication to | 5 |
assist owners and tenants of foreclosed | 6 |
properties, to require clerks of courts to | 7 |
distribute that publication, to require landlords | 8 |
to notify tenants when a property is foreclosed | 9 |
and when a sale is scheduled, to enable tenants to | 10 |
terminate a rental agreement on a foreclosed | 11 |
property, to provide for continuance of a rental | 12 |
agreement after a foreclosure sale, and to provide | 13 |
civil remedies for a tenant whose landlord | 14 |
violates the bill's provisions. | 15 |
Section 1. That sections 121.086, 2703.10, 5321.20, 5321.21, | 16 |
5321.22, and 5321.23 of the Revised Code be enacted to read as | 17 |
follows: | 18 |
Sec. 121.086. The director of commerce shall prepare a | 19 |
publication for distribution to owners and tenants of residential | 20 |
properties that are the subject of foreclosure actions. The | 21 |
publication shall include a list of available resources to assist | 22 |
owners of residential properties to retain their property and to | 23 |
assist tenants in obtaining assistance if relocation is necessary. | 24 |
The director shall make the publication available to clerks of | 25 |
courts in this state for distribution to owners and tenants of | 26 |
residential properties that are undergoing foreclosure. | 27 |
Sec. 2703.10. (A) When a holder of a mortgage files a | 28 |
complaint to initiate a foreclosure action on a residential | 29 |
property, along with the summons that is served on the owner of | 30 |
the property, the clerk of courts shall provide a copy of the | 31 |
publication on foreclosure the director of commerce prepares | 32 |
pursuant to section 121.086 of the Revised Code. | 33 |
(B)(1) Within seven days after issuing a summons for service | 34 |
on the property owner in a foreclosure action described in | 35 |
division (A) of this section, the clerk of courts shall send | 36 |
written notice of the foreclosure action by ordinary mail to the | 37 |
attention of the residents at the address of the property. The | 38 |
notice shall include the following statement: | 39 |
"The holder of a mortgage has filed a complaint with this | 40 |
court to initiate a foreclosure action against the property at | 41 |
this address . . . . . . . . For more information, you should | 42 |
contact the clerk of this court at . . . . . . . . (phone number). | 43 |
A sale at auction could occur as a result of this foreclosure." | 44 |
(2) The clerk shall enclose with the notice of foreclosure a | 45 |
copy of the publication on foreclosure the director of commerce | 46 |
prepares pursuant to section 121.086 of the Revised Code. | 47 |
Sec. 5321.20. (A) A landlord who is the owner of a property | 48 |
that is the subject of a foreclosure action shall do all of the | 49 |
following: | 50 |
(1) Within thirty days after receiving a summons that | 51 |
contains a notice of foreclosure, provide written notice of that | 52 |
foreclosure to any tenant of the property; | 53 |
(2) Include a notice of the foreclosure in any written rental | 54 |
agreement the landlord enters into after receiving the summons | 55 |
with a notice of the foreclosure action; | 56 |
(3) Provide a written notice of foreclosure to a tenant at | 57 |
the time of any oral rental agreement the landlord enters into | 58 |
after the landlord has received a summons with a notice of | 59 |
foreclosure; | 60 |
(4) Provide each tenant at the property with written notice | 61 |
of the date, time, and place of the scheduled sale of the | 62 |
foreclosed property at least twenty-one days before the date of | 63 |
the sale at auction. | 64 |
(B) Any written notice the landlord provides pursuant to this | 65 |
section shall include a statement in substantially the following | 66 |
form: | 67 |
"This property is undergoing foreclosure. For more | 68 |
information on this action, you should contact the ..........(your | 69 |
county) Clerk of Courts for the Court of Common Pleas, | 70 |
..........(address), at ..........(phone number). | 71 |
A sale at auction could occur as a result of this | 72 |
foreclosure. Currently, [the sale of this property has been set | 73 |
for ..........(time, date, and place)] or [no date for sale of | 74 |
this property has been established]. Ohio law requires that I | 75 |
provide you with written notice of the sale at least twenty-one | 76 |
days before it takes place. | 77 |
If there is a sale of this property at auction, your current | 78 |
rental agreement will convert to a month-to-month rental agreement | 79 |
upon the sale of the property. | 80 |
Note: With a month-to-month rental agreement, either the | 81 |
tenant or the landlord may terminate the agreement by providing | 82 |
written notice of termination to the other at least thirty days | 83 |
prior to a date on which the rent payment normally is due. The | 84 |
rental agreement then terminates on that rent payment date." | 85 |
Sec. 5321.21. (A) Any tenant of a residential property that | 86 |
is the subject of a foreclosure action brought by a mortgage | 87 |
holder may terminate that tenancy at any time after the holder of | 88 |
the mortgage files a complaint with a court to initiate the | 89 |
foreclosure action. To terminate the tenancy, the tenant shall | 90 |
provide written notice of termination to the landlord at the place | 91 |
where rent normally is paid. The notice shall state the date upon | 92 |
which the tenancy will terminate, which shall not be earlier than | 93 |
thirty days following the next date on which rent is due. The | 94 |
tenant is responsible for all rent until the termination date. | 95 |
(B) A landlord shall return any deposit to a tenant who | 96 |
terminates a rental agreement pursuant to this section in the same | 97 |
manner as this chapter provides for tenancies that end pursuant to | 98 |
the terms of the rental agreement. A tenant who terminates a | 99 |
rental agreement pursuant to this section has allthe rights of a | 100 |
tenant whose rental agreement expires pursuant to its own terms. | 101 |
Sec. 5321.22. Any rental agreement for a residential | 102 |
property that is the subject of a foreclosure action shall convert | 103 |
to a month-to-month rental agreement upon a court's approval of a | 104 |
sale at auction pursuant to section 2329.31 of the Revised Code. | 105 |
Sec. 5321.23. In addition to any other remedy under law, a | 106 |
tenant may recover the greater of actual damages or one month's | 107 |
rent plus the security deposit amount and reasonable attorney's | 108 |
fees, obtain injunctive relief to enforce the rental agreement, or | 109 |
both, if a landlord or a successor in interest violates section | 110 |
5321.20 of the Revised Code, fails to provide a written notice | 111 |
that section 5321.20 of the Revised Code requires, or fails to | 112 |
honor a rental agreement established under section 5321.22 of the | 113 |
Revised Code. | 114 |