Utah passed a bill enacting protections for tenants of rental property in foreclosure. Under the bill, a purchaser of residential rental property at a foreclosure sale must serve a notice to vacate prior to terminating a tenant’s rental agreement. The bill also prohibits the purchaser of foreclosed residential rental property from evicting a tenant prior to the end of the tenant’s rental agreement, unless the purchaser intends to occupy the property as the purchaser’s primary residence. In addition, the bill amends the content of the Notice to Tenant that must be included with the Notice of Sale (when the stated purpose of the obligation for which the trust deed was given as security is to finance residential rental property). The bill becomes effective May 10, 2016.
See Utah State Legislature website for the full text of the Statute:
