If you own or manage a large, small, for profit or nonprofit organization, you can still be evicted, according to the Massachusetts Eviction and Moratorium Act, signed by Governor Charlie Baker on April 20, 2020, if you’re not considered (non-essential)*.

The Act expires 120 days from April 20th or 45 days after the emergency declaration is lifted, whichever is sooner.

EVICTIONS

Don’ts

  • residential landlords cannot terminating tenancies, send notices to quit or take any “non-essential” eviction actions 
  • residential and commercial landlords (of small businesses only) cannot charge late fees for non-payment or furnish data to a consumer reporting agency, if within 30 days, the tenant provides notice and documentation to the landlord that the non-payment is caused by financial impact from COVID-19

Dos

  • landlords can use last month’s rent paid by tenants to cover expenses, but the landlord must continue to pay any interest that may have accrued to the tenants (both residential and commercial).

Read more in the National Law Review

Residential Enforcement:

When it comes to residential tenants, the Act stops sheriffs and constables from taking action if an eviction is in process.  So, if a landlord has started the process, even if they’re at the very end of the process, they cannot proceed and must re-start the filing all over again after the moratorium is lifted.  The only hope for landlord would be if the tenant voluntarily moves out.

*Non-Essential is defined in the Act as an eviction for non-payment of rent, resulting from foreclosure, a “no fault” eviction, or any eviction NOT due to: (a) criminal activity that impacts health or safety, (b) lease violations that may impact health or safety.  This does not include a commercial tenant, so commercial tenants may still be evicted.

The Act’s moratorium does not include evictions of tenants in a small business premises unit due to (i) the expiration of the lease term or (ii) a tenant’s default under the terms of its lease or tenancy that occurred before the Governor’s emergency declaration.

FORECLOSURES

Section 5 of this Act  prohibits creditors and mortgagees of residential properties (that are not vacant or abandoned) from:

a) causing notice of a foreclosure sale to be published
b) exercising a power of sale
c) exercising a right of entry
d) initiating a judicial or non-judicial foreclosure process
e) filing a complaint to determine military status

“it will be necessary for buyers to research whether the property was vacant or abandoned.”  Robert R. Pellegrini, Jr. Esq., president, PK Boston Law 

A New Challenge To Title Attorneys?

Future buyers of properties available for sale during the timeframe that the Act was in effect will want to ensure that the above was not violated during the period through which the Act is extended. 

Also, it will be necessary for buyers to research whether the property was vacant or abandoned.  It would greatly reduce time and effort if a foreclosing attorney of a residential home, or a judge, can state in the notice, etc that the home is vacant or abandoned.

Subsection (b) of this section adds that a creditor or mortgagee must grant a forbearance if the mortgagor submits a request that the mortgagor has experienced a financial impact from COVID-19.  Additionally, there can be no furnishing of negative information to a consumer reporting agency.

PK Boston Law is a full-service law firm that offers legal counsel to individuals and businesses in Greater Boston and Rhode Island. Our specialties include estate planning, real estate development, debt collections and bankruptcy, landlord/tenant law and civil litigation. 

Robert Pellegrini
President


The above information is designed to provide a helpful overview of a relevant topic. It does not constitute legal advice nor should it be construed as such. Please do not take action based on the above information without seeking formal legal advice. If you would like additional information, please contact us at (508) 807-1131.