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House amends unlawful‑detainer law to add tenant notice and limit treble damages after foreclosure
Summary
Lawmakers amended and passed First Substitute HB299 to clarify unlawful‑detainer procedures for tenants affected by foreclosure: a posted notice requirement and an exemption from treble damages for tenants after notice. Sponsors said changes protect tenants who pay rent but face foreclosure; debate focused on scope and possible impacts on foreclosure processes.
The House on Feb. 24 passed First Substitute House Bill 299, which changes Utah’s unlawful‑detainer statute to address tenants who occupy property after a foreclosure or forced sale. Representative Ford, sponsor of HB299, said the bill clarifies when an unlawful‑detainer action can proceed against tenants occupying property after foreclosure and allows judges to hold evidentiary hearings in those cases.
Floor amendments narrowed and added tenant protections. Representative Jose Harper offered Amendment No.4 to require notice steps tied to trustee‑sale timing: a posting and tenant notification within a statutory window so occupants of residential units (nine units or fewer) receive timely notice that a property is in default and potential sale. Representative Lipback’s Amendment No.3, adopted on the floor, exempts tenants from treble damages after the trustee sale or after notice, addressing testimony from committee hearings that tenants who pay rent but are unaware of foreclosure should not be held to treble damages.
Debate centered on whether foreclosure‑related notices belong in an unlawful‑detainer statute and on possible unintended costs or procedural complications for trustees and courts. Sponsor Ford said the bill should reduce court hearings and costs and that fiscal analysts were reviewing the fiscal note; he said he expected a net decrease in costs because clearer statute reduces litigation.
After floor amendment votes, the House passed the amended First Substitute HB299 by voice vote reported as 71‑0 and will transmit the bill to the Senate.
