Apr 18 2005
The National Association of Realtors applauds the U.S. House of Representatives today for passing four real estate provisions as part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, S. 256. The bankruptcy reform bill passed the Senate last month and now heads to President Bush, who has promised to sign it.
The legislation contains four NAR-supported provisions. First, it provides a 90-day stay from creditors for certain commercial properties regardless of value. Second, the bill closes the loophole that allows residential tenants to avoid or delay eviction by declaring bankruptcy. This provision maintains the protections currently enjoyed by tenants under state landlord-tenant laws. Third, the bankruptcy reform bill requires homeowners or condo association fees to be repaid.
Finally, the bill protects shopping center owners by giving tenants who declare bankruptcy 120 days to assume or reject a lease. This is double the initial time permitted under current law, which gives tenants who declare bankruptcy 60 days to assume or reject a lease. However, courts have routinely extended this time for many months or even years.
“NAR supports several real estate provisions in the bankruptcy reform bill that will better position real estate assets when tenants or owners file for bankruptcy,” said NAR President Al Mansell, CEO of Coldwell Banker Residential Brokerage in Salt Lake City.
The National Association of Realtors, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1 million members involved in all aspects of the residential and commercial real estate industries.