(1) As used in this section:
(a) “Bona fide residential rental agreement” means an agreement, for a property secured by a mortgage:
(i) that was the result of an arm's-length transaction;
(ii) established before the filing of an action to foreclose the mortgage under 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 mortgagor; and
(iii) is not the mortgagor'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) is foreclosed under Part 9, Mortgage Foreclosure.
(d) “New owner” means the immediate successor in interest of a foreclosed rental property following foreclosure 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:
(i) according to the terms of a bona fide residential rental agreement; and
(ii) until the end of the term of the bona fide residential rental agreement.
(b) Subject to Subsection (3), a new owner who intends to occupy a foreclosed rental property as the new owner's primary residence may terminate:
(i) the bona fide residential rental agreement; and
(ii) the bona fide tenant's occupancy of the foreclosed rental property.
(3)(a) A new owner who terminates a bona fide tenant's occupancy of a foreclosed rental property shall serve, to the bona fide tenant, a notice to vacate:
(i) at least 45 days before the day on which the new owner requires the bona fide tenant to vacate the foreclosed rental property; and
(ii) as provided in Section 78B-6-805 .
(b) A notice to vacate under Subsection (3)(a) shall:
(i) be in at least 14-point font;
(ii) state the new owner's name, address, and contact information;
(iii) explain the reason the new owner requires the bona fide tenant to vacate the rental property;
(iv) state the date on which the bona fide tenant is required to vacate the rental property; and
(v) refer to this section as the law under which the notice to vacate is provided.
(4) This section does not modify the requirements for termination of a federally subsidized tenancy.
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