Bona Fide Lease Survives Foreclosure Under PTFA

  The Sixth Appellate District concludes, in Nativi v. Deutche Bank, that the Protecting Tenants Against Foreclosure Act of 2009 (scheduled to sunset the end of 2014) causes a bona fide lease for a term to survive foreclosure through the end of the lease term — subject to the limited authority of the immediate successor in interest to terminate the lease, with proper notice, upon sale to a purchaser who intends to occupy the unit as a primary residence. The Act impliedly overrides state laws that provide less protection but expressly allows states to retain the authority to enact greater protections. Bona fide tenancies for a term that continue by operation of the PTFA remain protected by California law.

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