questions & answers

Question: The home I'm renting (leased through August 2015) was foreclosed on and there's a new owner. Do I have to pay rent to the new owner if I'm leaving in 6 weeks? Or do they have to give me an eviction notice? The new owner is demanding rent, but she doesn't have the deed yet, just a proof of purchase receipt.

Answer: In most circumstances, when a property is foreclosed, the lease also ends. The Arizona Residential Landlord and Tenant Act, §§ 33-1301- 1381 of the Arizona Revised Statutes, states the lawful and unlawful behavior of landlords and tenants. Arizona Revised Statute 33-1367 states “[i]f the landlord unlawfully removes or excludes the tenant from the premises or wilfully diminishes services to the tenant by interrupting or causing the interruption of electric, gas, water or other essential service to the tenant, the tenant may recover possession or terminate the rental agreement and, in either case, recover an amount not more than two months' periodic rent or twice the actual damages sustained by him, whichever is greater. If the rental agreement is terminated the landlord shall return all security recoverable under section 33-1321.” Arizona Revised Statute 33-1331(B) applies to notice of foreclosure on a rental property. Its states: “[i]f the owner receives a notice of trustee's sale or other notice of foreclosure on the property after a tenant has entered into a rental agreement on the property, the owner shall provide the tenant with written notice as prescribed in subsection A of this section within five business days after receipt of the notice of trustee's sale. This subsection applies only to the first notice of trustee's sale or the first notice of foreclosure received by the owner after the tenant has entered into the rental agreement. 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. D. This section shall not apply to multifamily residential rental units consisting of four or more connected units.” Please see our article about where to find legal help with foreclosures titled, “Where Can I Find Legal Help with a Foreclosure” at: http://azlawhelp.org/articles_info.cfm?sc=88&mc=3&articleid=215. For additional help please see the attorney general’s website at: https://www.azag.gov/foreclosure. To see if you qualify for a free or reduced fee attorney please call our LegalLearn line at 866-637-5341.