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REFERENCE TITLE: foreclosures; rentals; landlord duties |
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State of Arizona House of Representatives Fiftieth Legislature First Regular Session 2011
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HB 2632 |
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Introduced by Representatives Hobbs, Wheeler: Alston, Gallego, Gonzales
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AN ACT
amending section 33-1331, Arizona Revised Statutes; relating to the arizona residential landlord and tenant act.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 33-1331, Arizona Revised Statutes, is amended to read:
33-1331. Notice of foreclosure; effect on lease; damages
A. If a tenant or subtenant is lawfully in possession of the property when a foreclosure action is initiated, the tenant may continue to rent the property for the remainder of the lease period or for an additional ninety days after the recording of the conveyance to the new owner, whichever is longer. During the remainder of the lease or the ninety days, whichever applies, the new owner is limited to and obligated as the landlord on the existing terms of the lease, including the amount of any rent.
A. B. If a rental agreement is entered into after the foreclosure action was initiated, the owner shall include written notice of possible foreclosure with the rental agreement with the tenant. The notice shall include a statement that is substantially in the following form:
This property is undergoing foreclosure. For more information on this action, you should contact ________________ (name, address and phone number of the court where the action is filed or trustee, attorney or other responsible party).
A sale at auction may or may not occur as a result of this foreclosure. Currently, the sale of this property has been set for _________ (time, date and place) or no date for sale of this property has been established.
B. C. If the owner fails to provide notice as prescribed in this section the tenant may deliver a written notice pursuant to section 33-1361 and recover damages and obtain injunctive relief. The security deposit shall be returned to the tenant as prescribed in section 33-1321.
C. D. This section shall not apply to multifamily residential rental units consisting of four or more connected units.