What happens if a landlord sell property during a 1 year lease to a new buyer that doesn't want to rent?

Question

What happens if a landlord sell property during a 1 year lease to a new buyer that doesn't want to rent?

Answer 1

Egad! So many of the answerers are full of p**p. A foreclosure kills the lease, but a sale NEVER does.

The new buyer is stuck with the tenant unless he makes a vacant place a condition of the sale and then the seller must buy-out the lease with a sweet offer.

Answer 2

They are bound by the lease to a point...they can still give you 30days to vacate the premises after they assume ownership.

And your deposits should be paid in full.

Answer 3

REEL estate guy is 100% wrong.

1st off the new lender may not even know its a rental property. Odds are its supposed to be owner occupied. Depending on what state you live if as to whether the lease transfers or not. If the Mortgage Deed states it owner occupied you don't have to pay anyone anything. The old landlord voided your lease and you don't have a new lease with a landlord committing loan fraud.

Answer 4

You basically get a 30-day notice to vacate once escrow opens and then you move out.

I just bought a rental condo with a tenant. When I asked my real estate agent about what obligation I have to the current tenant, he said I have none, because I did not enter into a contract with the tenant.

I also read an article in the local paper last month about how the foreclosure crisis is adversely affecting renters with leases in properties that foreclose. The new owners - even the banks themselves - have absolutely no obligation to honor existing leases upon the foreclosure and subsequent sale of the property.

One of three things can happen when ownership changes hands on a rental property:

1 - The new owner honors the existing lease

2 - The new owner lets the tenant stay, but a new lease is negotiated (and the rent can increase).

3 - The new owner does not want to rent the property to the existing tenant and they must move out.

Answer 5

The other posters are WRONG.

The lease runs with the property, not the owner.  The new owner must honor the lease unless you both agree to end it.

100% sure.

Answer 6

The new owner is bound by the existing lease.