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.
B. 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.
C. This section shall not apply to multifamily residential rental units consisting
of four or more connected units.
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