does a lease protect you if the owners sell your building?

[nageov3t]

I know this is a total "ask a lawyer" thread and I will if it becomes a reality, but I was more idly wondering about it... if you have a signed lease with your landlord and your landlord sells the property, are the new owners required to acknowledge the terms of the lease?

my 87 year-old great aunt owns/lives in a 2 family house... she rents out the 2nd apartment to this polish cleaning lady, but lately her tenant has been giving her issues with paying the rent (she seems to pay what she feels like paying, not what my aunt is asking her to pay; she never signed a lease). my family wants to evict the tenant and have me move in since: a) I hate where I'm living now and want to move back up north into a bigger place to be closer to my sister's family anyways, and b) she's reaching that age where we don't necessarily want to have to trust strangers around her

my concern is what would happen if she takes a sudden turn for the worse, has to be admitted into a nursing home, and is forced to sell the house to pay for it. could doing something like having a lawyer draw out a 5 year lease protect me from getting screwed over by new owners?

 

[Rage187]

First, I'm no lawyer. Your contract would be with the owner, not the building.

 

[her209]

First, I'm no lawyer. Your contract would be with the owner, not the building.

IANAL, but changing ownership like that doesn't void your contract/agreement. The way I think of it, when SBC got bought out by AT&T, the SBC customer's contracts weren't annulled.

 

[RedCOMET]

My lease specificies what is to happen with my lease if the owner of the building decides to sell the building. I also have had two friends whos landlords sold the propertiers they were renting. Well techincally the one friend was having the building being foreclosed.. they basically were giving so many monthes to vacate th property since the propertiy was bought at auction by some bank that didn't have the original mortgage. i think that was a tax issue or soemthing who knows.

the second friends apartment buidlign was sold to a university. they had up until their lease ended to move out, but they left early and got their security deposit back and stuff. no penalty was assessed

So i guess it depends on what your lease states and what contracct between the seller and buyer states. but i'm sure the state might have some teneant rights laws to help out in these matters

 

[MotionMan]

First, I'm no lawyer. Your contract would be with the owner, not the building.

The lease would (or at least, should) say what happens if the property is sold.

ALL of the form leases I have seen say the lease continues with the new owner.

But what do I know?

MotionMan, Esq. (Real estate attorney)

 

[T9D]

...

 

[bobdole369]

Foreclosures are a different beast than the landlord selling the property. Usually the lease specifies what happens in a sale. Almost always - its 30 or 90 days and out.

 

[MovingTarget]

A lease does offer you some protections depending on the state in which you reside. IIRC, they can't just throw you out as soon as the new owners close on the property, but you are allowed a time frame to vacate the property (usually 30-90 days) in time to find a new place (if you are lucky).

 

[waggy]

I went though this years ago and was looking to buy a apartment building.

from talking to lawyers etc. when it happens nearly EVERY TIME the contract of sale states they have to honer any contracts to the building.

Though if this is a house you are renting they have to evict you the way any other landlord does. most will let you stay the contract and then not release to you.


Since the situation you explain is not norm i would talk to a lawyer when it happens. 5 yr lease's are not typical.

 

[Whoozyerdaddy]

Resdential leases are typically one year only. In some states that's the law. Not sure if that's a national thing. I know it is in Ak and Hi.

As the OP wishing to evict the current tennant, if there's no lease you just have to give her 45 days notice from her next rent due date. If the owner lives in the building and there are 4 rental units or less she can evict for any reason.

 

[a123456]

I don't know about your particular state, but the new owner doesn't have to honor the entire lease from the old owner since the contract was made between you and the old owner. Otherwise, you could sign a 100 year lease for 1 dollar per month with the old owner and live there rent free forever, no matter who owns the house.

There are certain protections usually for a tenant, though. Usually, if you're nice to the new owner, you can work out a new lease with the new owner since it'll be less headache for the owner to find someone to live there and keep the place nice unless the new owner is looking to do some construction there or something.

If the new owner really really wants you to move out, he can serve you notice that he intended to occupy the house, in which case you as the tenant have 90 days (might differ by state) to vacate. If your lease ends in like 120 days or whatever, the new owner will probably let you stay there the 120 days since the court fight to evict will take an extra month anyway. Bottom line, if the owner really wants you out, you can't stay there forever but the new owner cannot throw you out right away.

 

[MotionMan]

I don't know about your particular state, but the new owner doesn't have to honor the entire lease from the old owner since the contract was made between you and the old owner. Otherwise, you could sign a 100 year lease for 1 dollar per month with the old owner and live there rent free forever, no matter who owns the house.

There are certain protections usually for a tenant, though. Usually, if you're nice to the new owner, you can work out a new lease with the new owner since it'll be less headache for the owner to find someone to live there and keep the place nice unless the new owner is looking to do some construction there or something.

If the new owner really really wants you to move out, he can serve you notice that he intended to occupy the house, in which case you as the tenant have 90 days (might differ by state) to vacate. If your lease ends in like 120 days or whatever, the new owner will probably let you stay there the 120 days since the court fight to evict will take an extra month anyway. Bottom line, if the owner really wants you out, you can't stay there forever but the new owner cannot throw you out right away.

In the case of the 100 year lease mentioned above, that would be discovered during escrow through the buyers due dilligence and would probably make the property unsellable (unless the tenant agreed to renegotiate (which he would NOT be required to do)).

A lease gives the tenant a property right (possession). The new owner could not just evict you unless the lease allowed it.

The terms of the lease control what happens when the property is sold.

Of course, the law in your state may be different (but I doubt it).

MotionMan

 

[KentState]

No. Lease is a contract with the current owner. You can't force a contract onto a new owner and totally different person. You have to renegotiate and resign. Most usually want you there anyway though so they honer it and it's not a problem.

But just look at all those renters getting evicted who were renting but the owner got foreclosed on. They all get booted right out and most having no idea the place was in foreclosure. The bank only gave as much notice as was legally required even. The old owner could even run off with your last month rent and security and it would be up to you to go sue him to get it back. New owner is not responsible for it.

I mean some people may buy a place and the rent was way to low. Someone may buy a place because they themselves want to live in it. Someone may buy a place to tear town. What if it was a 10 year lease to a relative for $100 a month, you think that a buyer has to let it sit 10 years before he can touch it again? Unless you sigh a lease with the new owner then there is no contract with you and him.

That's not true anymore for a lease on residential property during a foreclosure. Starting last March, the person that purchases the home has to honor the previous lease. I went through this back in September and was offered "cash for keys" to move out early. Luckily, I was aware of the situation and already found a new house to rent and was moving the next weekend. Made enough money to pay for the movers and the electric/water/gas hookup feeds. I also had the old owner refund the rent and security deposit.

 

[slayer202]

It seems pretty strange if a sale of the building would kill the original agreement.

 

[seemingly random]

It seems pretty strange if a sale of the building would kill the original agreement.

This would be my inclination, also. But the law doesn't seem to always follow common sense.

 

[DrPizza]

Look at it this way - if the lease didn't follow to the new owners, then someone could set up some sort of dummy corporation & sell the property to the dummy corporation simply to void all of the leases.

 

[3chordcharlie]

Look at it this way - if the lease didn't follow to the new owners, then someone could set up some sort of dummy corporation & sell the property to the dummy corporation simply to void all of the leases.

Nah, first someone would have to think up such an evil plan.

There are circumstances that allow a new owner to evict before the end of a lease, but they are exceptions; as a rule, the lease endures.

 

[a123456]

In the case of the 100 year lease mentioned above, that would be discovered during escrow through the buyers due dilligence and would probably make the property unsellable (unless the tenant agreed to renegotiate (which he would NOT be required to do)).

A lease gives the tenant a property right (possession). The new owner could not just evict you unless the lease allowed it.

The terms of the lease control what happens when the property is sold.

Of course, the law in your state may be different (but I doubt it).

MotionMan

Not exactly, at least in CA. Like I mentioned above, the new owner is supposed to honor the existing lease. Except there's a clause for the owner to opt out of the lease, no matter what the lease says.

From the recent federal law (Protecting Tenants at Foreclosure Act of 2009) signed by Obama here, an owner may evict a tenant if the owner gives 90 day written notice and says in the notice that he/she intends to occupy the house and/or wants to sell to someone else to occupy the house.

The 90 days is an increase from before in some states. It used to be shorter. So even if the OP signs a nice long 5 year lease, the new owner could give him the 90 day notice about intent to occupy and then the OP would be required by law to move out. Hence, a long lease is not really solid protection if the owner really wants you out. However, most owners are going to reasonable and negotiate a new lease or keep the old lease if you seem like a cool tenant.