Utah Code § 57-1-25.5 [Repealed]

• Library: Utah Statutes
• Edition: 2023
• Currency: Current through the 2023 Second Special Session
• Year: 2023
• Citation: Utah Code § 57-1-25.5

(1) As used in this section:

(a) "Bona fide residential rental agreement" means an agreement, for a property secured by a trust deed:

(i) that was the result of an arm's-length transaction;

(ii) established before:

(A) the trustee records a notice of default for the property under Section 57-1-24; or

(B) the trustee or beneficiary files an action to foreclose the trust property under Title 78B, Chapter 6, Part 9, Mortgage Foreclosure;

(iii) that provides an individual the right to exclusive use and occupancy of the residential property:

(A) on an at-will basis; or

(B) for a period specified by the agreement that is no longer than twelve months; and

(iv) that requires the individual to pay rent in an amount that:

(A) is not substantially less than fair market rent for the property; or

(B) is less than fair market rent due to a federal, state, or local subsidy.

(b) "Bona fide tenant" means an individual who:

(i) has the right to occupy a residential property under a bona fide residential rental agreement;

(ii) is not the trustor; and

(iii) is not the trustor's child, spouse, or parent.

(c) "Foreclosed rental property" means a property that:

(i) is the subject of a bona fide residential rental agreement; and

(ii)

(A) is the subject of a trustee's sale as provided in this chapter; or

(B) is foreclosed under Title 78B, Chapter 6, Part 9, Mortgage Foreclosure.

(d) "New owner" means the immediate successor in interest of a foreclosed rental property following a foreclosure or trustee's sale of the property.

(2)

(a) Except as provided in Subsection (2)(b), a new owner assumes ownership of a foreclosed rental property subject to a bona fide tenant's right to occupy the foreclosed rental property: