My landlord unexpectedly sold the house that I’ve rented for the past seven months. I still have five months left on my lease and want to stay. Do I have to move out?
Not unless it says so in your lease. If the previous owner was thinking of selling the property at the time the lease was entered into, it’s possible that there is a lease provision that controls. Owners and tenants can contractually agree in a lease that the tenant will move out if a sale occurs. These provisions typically require the tenant to move out within a certain period of time after the sale (usually 30-90 days after the sale).
If the lease does not have a provision addressing the sale of the property, then the new owner essentially buys into the same position as the previous owner, which means that the lease remains in effect for the remaining five months. Your rent will remain the same, and you will be entitled to a security deposit refund per your lease (the new owner typically receives the security deposit from the previous owner at the closing of sale). Be sure to get the new owner’s name and address so that you know who to contact for maintenance issues as well as where to make rent payments.
Of course, there are no guarantees after your lease expires in five months. The new owner can renew the existing lease, offer new lease terms (like raising the rent), or simply decline to renew the lease, thereby forcing you to move out.
It’s important to note that this is different than a foreclosure situation, which occurs when an owner defaults or fails to pay on the home mortgage loan. If a foreclosure occurs and your lease was entered into after the existence of the mortgage loan, in general, the foreclosing lender will have the right to terminate your lease. Foreclosure situations are often complicated, so tenants that are threatened with eviction due to a lender’s foreclosure should consult an attorney.
This article appears in August 7 • 2015.