US-New YorkWhat are my rights as a tenant facing foreclosure of my building?
As a tenant in New York facing building foreclosure, you have the right to stay in your apartment for at least 90 days after the foreclosure sale—and if you have a valid lease, you may remain for its full term unless the new owner intends to occupy the unit as their primary residence.
What the Law Says
New York law provides specific protections for tenants whose rental building is sold through foreclosure. These rights limit how quickly a new owner can evict you and ensure you’re not forced out without notice or recourse.
Under the federal Protecting Tenants at Foreclosure Act (PTFA), which applies in New York, tenants with a bona fide lease may remain in possession until the lease expires—unless the new owner will use the unit as their primary residence. Month-to-month tenants must receive at least 90 days’ written notice before eviction.
New York’s Real Property Actions and Proceedings Law (RPAPL) § 745-a adds state-level protections. It requires the foreclosing lender or purchaser to serve tenants with a notice of foreclosure sale and gives tenants the right to request rent escrow if services deteriorate or repairs are neglected post-foreclosure.
RPAPL § 745-a also allows tenants to deposit rent with the court instead of paying the landlord if the landlord fails to maintain habitability or violates housing code—this is called a ‘rent escrow’ motion. The court may order repairs or reduce rent.
Statutory TextA tenant who is not a party to the foreclosure action shall be entitled to remain in possession of the premises for not less than ninety days after the date of the foreclosure sale.
— RPAPL § 745-a(1) — Tenant rights upon foreclosure
Statutory TextIf the tenant has a bona fide lease that was entered into before the notice of foreclosure sale, the tenant may remain in possession until the end of the lease term, unless the purchaser will occupy the dwelling unit as his or her primary residence.
— RPAPL § 745-a(2) — Lease protection
What Courts Have Said
New York courts have reinforced tenants’ rights during foreclosure by interpreting RPAPL § 745-a broadly to protect occupancy and habitability—even when landlords become unresponsive after sale.
Court held that a tenant’s right to remain under RPAPL § 745-a continues even after transfer to a third-party purchaser, and failure to serve proper notice voids an eviction attempt.
Ruled that tenants could pursue rent escrow under RPAPL § 745-a where heat, plumbing, and security were neglected post-foreclosure, and landlord was unreachable.
What to Do
Confirm your tenancy status: check if you have a written lease, month-to-month agreement, or are undocumented—but still protected under RPAPL § 745-a.
Keep all rent receipts and document any habitability issues (e.g., no heat, leaks, broken locks) with photos and dates.
If the landlord stops responding or maintaining the building, file a rent escrow motion in Housing Court within 120 days of noticing the problem (RPAPL § 745-a(4)).
Do not stop paying rent unless a judge orders escrow—you risk eviction for nonpayment.
If served with a notice to vacate, verify it complies with the 90-day rule (or lease term); if not, consult Legal Aid or a housing attorney immediately.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.