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  Senate Engrossed House Bill
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  State of Arizona
  House of Representatives
  Forty-ninth Legislature
  Second Regular Session
  2010
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        CHAPTER 264
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      HOUSE BILL 2766
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AN ACT

AMENDING TITLE 33, CHAPTER 10, ARTICLE 2, ARIZONA REVISED STATUTES, BY ADDING SECTION 33-1331; 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. Title 33, chapter 10, article 2, Arizona Revised Statutes, is amended by adding section 33-1331, to read:

33-1331. Notice of foreclosure; effect on lease; damages

A. 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.

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 33-1321.

B. THIS SECTION SHALL NOT APPLY TO MULTIFAMILY RESIDENTIAL RENTAL UNITS CONSISTING OF FOUR OR MORE CONNECTED UNITS.

Sec. 2. Legislative intent; protecting tenants in foreclosure act

The legislature intends by this act to provide information to renters in homes that are subject to foreclosure and to work in conjunction with the provisions in the protecting tenants at foreclosure act of 2009 (P.L. 111-22; 123 Stat. 1660; 12 United States Code section 5201).

APPROVED BY THE GOVERNOR MAY 7, 2010.

FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 7, 2010.