Cal. Civ. Code § 13A
Tenants deemed to be at will upon foreclosure of residential real property; status of tenancy agreements where rental payment subsidized under state or federal law
Operative Text
Section 13A. Upon a foreclosure of residential real property pursuant to chapter 244, a tenant, occupying a dwelling unit under an unexpired term for years or a lease for a definite term in effect at the time of the foreclosure by sale, shall be deemed a tenant at will. Foreclosure shall not affect the tenancy agreement of a tenant whose rental payment is subsidized under state or federal law and the foreclosing entity shall assume the lease and rental subsidy contract with the rental subsidy administrator.
Under Mass. Gen. Laws c. 186 § 13A, when a residential property is foreclosed under Chapter 244, a tenant who held a fixed-term lease at the time of the foreclosure sale is automatically reclassified as a tenant at will — meaning the definite lease term no longer governs the tenancy in the same way. However, this conversion does not apply to tenants whose rent is subsidized through a state or federal program; for those tenants, the existing lease and the rental subsidy contract with the administering agency must be taken over by the foreclosing entity. The provision draws a clear distinction between market-rate tenants with fixed terms and subsidized tenants, treating each category differently after a foreclosure event.
Plain English — not legal advice.
A party that acquires residential property through a Massachusetts foreclosure proceeding under Chapter 244 should understand that, under Mass. Gen. Laws c. 186 § 13A, any fixed-term leases held by market-rate tenants convert to tenancies at will upon the foreclosure sale. For tenants receiving a state or federal rental subsidy, compliant operators recognize that the foreclosure does not extinguish those tenancy agreements — instead, the foreclosing entity steps into the prior landlord's position and assumes both the lease and the subsidy contract with the relevant administering agency. Operators generally document the subsidy arrangements in place at the time of acquisition and coordinate with the subsidy administrator to ensure continuity of the contract obligations.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Mass. Gen. Laws c. 186 § 13A provides important protections depending on the type of tenancy a resident holds at the time of a foreclosure. If a tenant's rent is subsidized through a state or federal program, the foreclosure does not end the lease, and the new owner is required to assume both the lease and the subsidy contract — meaning a subsidized tenant retains rights under the existing agreement. Tenants who believe a foreclosing entity has failed to honor these obligations may consider raising the provision as a defense in any eviction or housing court proceeding, filing a complaint with the relevant housing or subsidy agency, or reaching out to a local tenant-rights organization for general information about available options.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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