What Happens When Your Landlord Decides to Sell?
Imagine this: you sit on your sofa, binge-watching your favourite TV show, feet propped up, snacking away, and suddenly, a notification pops up saying that your landlord is selling. Yes, you are panicking! Eviction? Overnight packing? Your new landlord is an enigma waiting to be discovered!
Take a deep breath. On the bright side, tenants have rights, and a “For-Sale” board on your lawn does not necessarily mean your eviction. Any tenant may be frightened by the prospect of getting split once the landlord announces her property’s sale. In similar cases, landlords and tenants commonly hold onto the lease, dissecting it from the beginning through to the end – slowly- giving them the choice to up-stick.
The sale of a property having tenants residing there can be problematic for both landlord and tenant.
Tenants may ask questions like whether they must leave right away, whether their lease is still effective, and what their rights will amount to during the transitionary period. So, here is a guide that will help tenants know what they can expect while their leased property is sold or give clerical advice to landlords.
What Happens When a Landlord Sells a property?
You have mistaken a selling unit for the abrupt termination of a lease. However, in most cases, tenants shall remain in the property and under the lease terms, and the new owner will take the lease-due place.
Key Tenant Rights When a property is Sold
1. Your Lease Stays in Place
If you have a fixed-term lease, such as a one-year agreement, the new owner is bound to respect the lease terms until it expires. The new landlord cannot legally make you move out without a valid reason.
2. No Immediate Eviction
Transferring impartial possession of property doesn’t necessarily mean that the tenant must vacate the premises and move immediately away. In complex instances, leases may be operated on a month-to-month basis; it is usually required for the owner to provide some form of notice (usually 60-30 days) to terminate the lease.
3. Proper Notice of Sale and Showings
Tenants have the right to be informed about the sale of the home. Therefore, the landlord must give them advanced notice when potential buyers are coming to view the property, usually 24 to 48 hours before an actual visit.
4. Security Deposits Must Be Transferred
If you are still residing at the apartment when it changes ownership, the sellers must hand over the security deposit to the new buyers according to the letter of the law. In this case, the new landlord is legally obligated to return the security deposit to you after the termination of the lease, subject to no other damages or outstanding liabilities of any kind.
5. Right to Stay After Sale
Tenants are liable to remain in housing under the lease with one vote in favour rather than leaving nowhere outside of having received a notice to vacate or the lease nearing the end of its term. But they may be compelled to move out sooner if the lease happens to be broken early or a formal notice of cash for keys can be served.
What Happens If You Have a Month-to-Month Lease?
If you’re on a month-to-month lease agreement, the new landlord can legally remove his agreement based on how state and locally regulated laws permit it, usually with written notice (30 to 60 days). Some states protect tenants going through such situations even further, so you may want to check local laws on housing to be sure.
Can the New Owner Raise the Rent?
A new landholder may not raise the rent upon acquiring the property except for at lease renewal. Should you get a lease, your rent will be constant throughout this lease. If, however, you decide to go on a month-by-month basis, a new landlord can up the rent if you are given proper notice. This usually means 30 days.
What If the New Owner Wants to Move In?
Sometimes a buyer will purchase a rental property to live there, instead of rent it out. Then the rights that a tenant has will largely depend on the lease terms that in this case apply and on local laws regarding tenant rights. In some cities, landlords are required to give sufficiently lengthy notice or move-out assistance.
Tips for Tenants During the Sale Process
• Stay Informed: Request written confirmation of any changes, including the new landlord’s contact information.
• Continue Paying Rent: Until you receive official instructions from the new owner, continue paying rent as usual to your current landlord.
• Know Your Lease Terms: Understanding your lease agreement will help you know your rights and responsibilities.
• Negotiate with the New Owner: If you wish to move out early, you may be able to negotiate a relocation package or “cash for keys” agreement.
How We Help Sellers and Tenants During Property Sales
When it comes to matters of real estate business, our team shall work to ease this transition for both the tenant and the seller. We value the separation of the selling of property from the tenants’ privacy and lives. The transaction is a straightforward and fair one, respecting lease agreements, and giving the past tenant-owner a small parting gift.
If you’re a landlord looking to sell without the hassle, or a tenant concerned about your rights, reach out to us for expert guidance. Sell My House El Paso – Let’s make the process smooth and stress-free!