Moratorium on Evictions and Foreclosures Extended to October 17, 2020

On April 20, 2020, Governor Baker signed into law An Act providing for a moratorium on evictions and foreclosures during the COVID-19 Emergency, which severely limits the ability of landlords and mortgage lenders to enforce lease obligations, and conduct evictions and foreclosures during the COVID-19 crisis. This emergency moratorium was extended by 60 days, until October 17, 2020. That means, absent exigent circumstances, landlords and mortgage lenders cannot take affirmative steps to impose penalties upon or enforce their rights against tenants and homeowners who fail to pay rent or monthly principal and interest payments as a result of COVID-19. These restrictions apply to residential and (certain) commercial tenants alike.

With respect to commercial tenants, the Act primarily protects for profit and non-profit small businesses that occupy a property for commercial purposes. Businesses that are excluded from the Act include a premises occupied by a tenant that (i) operates multi-state; (ii) operates multi-nationally; (iii) is publicly traded; or (iv) has not less than 150 full-time equivalent employees.

The Act forbids Landlords from filing an eviction action for non-payment of rent. Landlords may not impose late fees or report non-payment to the Consumer Reporting Agencies (Credit Bureaus) if the tenant provides proof that the non-payment of rent relates to the pandemic. Mortgage lenders are also obligated to grant a forbearance to homeowners who cannot pay their monthly principal and interest payments as a result of the pandemic.

Northshore Legal LLC specializes in real estate law, and represents buyer and sellers of residential and commercial real estate. We will continue to provide updates throughout the pandemic crisis. We can be reached at consultation@northshore.legal or 781-463-6063.