Arizona Landlord-Tenant Act Two-Day Notice Not Needed in Foreclosure

A Phoenix area limited liability company (LLC) purchases homes at foreclosure sales, makes repairs, and then “flips” the homes to new buyers. When the LLC purchases a home at a foreclosure sale, they generally have not inspected the home and don’t know the condition of the home. While they know there is a risk involved with not having any knowledge of the condition of the home at the time of the foreclosure sale, they want to know the condition of the home as soon as possible to get repair estimates, etc. Under the Arizona Landlord-Tenant Act an owner of a home has the right to inspect the home upon two-day notice. Does this Arizona Landlord-Tenant Act allow them to inspect the home by furnishing two-day notice to the owner of the home after the foreclosure sale?

No. Unless the home is abandoned, after the foreclosure sale the former owner of the home is required to move out after written notice. A.R.S. ’12-1173.01. If the former homeowner does not move out, the eviction process must be started in Superior Court (not Justice Court), and it generally takes at least two to three weeks before the former homeowner is actually evicted. Unfortunately, the two-day notice provision in the Arizona Landlord-Tenant Act does not apply as there is no “rental agreement” between the former owner of the home and the new owner of the home after the foreclosure sale. As a practical matter, however, even if the LLC was entitled to furnish two-day notice, but the former owner nevertheless refused access for an inspection, it would probably take the LLC two to three weeks to get a court injunction to be granted access to inspect the home.

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