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.