HOUSE BILL No. 4222

 

February 9, 2011, Introduced by Rep. Jackson and referred to the Committee on Banking and Financial Services.

 

     A bill to amend 1978 PA 454, entitled

 

"Truth in renting act,"

 

(MCL 554.631 to 554.641) by adding section 10a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 10a. (1) A rental agreement may contain a provision that

 

a landlord shall notify a tenant of any foreclosure actions being

 

taken against the property within 30 days after the period of

 

redemption has begun and again at least 30 days before the

 

conclusion of the period of redemption. If the rental agreement

 

does not contain such a provision, the landlord shall post written

 

notice reasonably visible to the tenant in the landlord's property

 

management office that notifies the tenant of his or her right to

 

receive notice that the property is in foreclosure at the times

 

specified in this subsection or deliver written notice of the

 


tenant's right to receive notice that the property is in

 

foreclosure at the times specified in this subsection when the

 

lease agreement is signed. A landlord whose property is in

 

foreclosure shall deliver notice to the tenant that the property is

 

in foreclosure at the times specified in this subsection. Nothing

 

in this section shall allow the tenant to withhold his or her

 

rental obligation because of receipt of the required notice.

 

     (2) A landlord who leases a property to a tenant during the

 

period of redemption of that property shall give written notice to

 

the tenant before the lease is entered into that the property has

 

been foreclosed on. The written notice shall notify the potential

 

tenant of the number of days remaining in the redemption period.

 

     (3) This section only applies to rental agreements entered

 

into on and after the effective date of the amendatory act that

 

added this section.

 

     (4) A landlord who violates this section is liable to the

 

tenant for damages and is responsible for a civil infraction and is

 

liable for a fine of not more than $500.00.