What Are Tenants’ Rights When Landlord Sells Property?

While the landlord or property owner has the right to sell their property, they can’t just kick the tenant off the rental property. A tenant’s rights vary depending on local laws, but there are general rules all landlords must adhere to.

If you’re a tenant, this article will give you an insight into your rights if your landlord sells the property you’re living in.

1. Landlords Can’t Evict Active Duty Service Members From the Rental Property

Active-duty service members are granted financial and legal protections, including renter’s rights. Per the Servicemembers Civil Relief Act (SCRA), a landlord can’t evict a military tenant for non-payment. The landlord would need a court order before the eviction can push through.

However, other material breaches of the rental agreement permit the landlord to commence eviction proceedings. As a landlord, you should confirm your tenant is a service member before signing the lease agreement. If you’re a military tenant, you need to prove you’re eligible for SCRA protections.

2. Tenants Must Be Advised of Notice to Vacate Ahead of Time

The landlord should advise the tenant if they’re selling the property, regardless of whether the lease expires. The time required depends on the state laws. However, in most cases, you need 30 to 60 days notice that you need to vacate the property.

Moreover, you might be entitled to a lease termination payout if the property sale happens before your lease expires. You should confirm if you have an early termination clause in your contract.

If you’ve got a fixed-term lease, you should confirm how long you’re given to leave the premises. There might even be a relocation fee if the lease term hasn’t ended yet.

Whether you have a month-to-month lease or a longer lease term, you’re entitled to reasonable notice to leave the property. Your existing lease should mention how long you have before you’re legally obliged to leave the property. Regardless of the terms in the contract, it would help if you were given enough time to gather your belongings and look for another property.

3. There Should Be An Advanced Notice if the Landlord is Showing the Property

Likewise, you should have an advance notice if the landlord is showing the property to potential buyers. If you pay rent and occupy the property, the landlord can’t simply enter the house or apartment.

In most cases, the landlord should provide you 24 to 48 hours before going inside the property. This means there should be no surprise visits. The landlord should respect your privacy even though they technically own the place.

4. A Termination Payment Must Be Paid if the Terms of the Lease or Rental Agreement Aren’t Fulfilled

The tenant’s agreement is binding, and there should be no issue if the property is sold once the lease ends. However, the landlord can offer an early termination payment to entice them to leave the property early. This compensation would make it easier for the landlord to show the property to possible buyers.

On the other hand, it is within the tenant’s rights to refuse this payment and remain in the property as long as the lease agreement is still valid. It’s just a bit harder to display a tenant-occupied property than a vacant one.

5. Tenants Have the Right to Live Under the Terms of the Original Lease Agreement

Unless the standing lease expires, landlord-tenant laws stipulate that it is within the tenant’s rights to live in the property. You can’t be kicked out of the house or apartment if the property sells before your lease expires.

The new owner will have to wait for your lease to end before they move into your rental property. You are not legally obligated to accept the early termination fee and have the right to stay in the property until the lease ends.

6. The Security Deposit Must Be Returned

Whether the lease expires or not, the tenant is entitled to a security deposit back. The landlord can deduct specific fees, such as repair expenses beyond normal wear and tear and unpaid utilities. This amount should be returned, usually 30 days after a tenant leaves the property.

If the tenant leaves the property while running away from rent responsibilities, the landlord can keep the deposit to compensate for the months without rent paid. If there are any deductions, the landlord must specify why the deposit was lessened.

7. Tenants Can Sue a Landlord in a Small Claims Court if Needed

Because getting kicked out of a rental property can be frustrating, the tenant can sue the landlord in a small claims court. Local laws dictate the grounds the tenant can cite in the case. In most cases, the aggravated tenant sues for prematurely ending leases or not giving back one’s security deposit on time.

Sometimes, the tenant can sue the landlord for withdrawing certain services like security to force them to leave the property. While the case may not deter the property sale from happening, it might turn off potential buyers from transacting with the owner.

8. The Property Must Be Well Maintained

The tenant is entitled to a clean and habitable environment while living there. Even if the property owner is within their rights to sell the house, they can’t cut utilities to force the tenant out of the premises. They must also make necessary repairs if the lease agreement covers the damages.

If the landlord does not fulfill their duties because they intend to sell the property, the tenant can withhold rent or break the lease without paying extra fees. However, they should have the right amount ready if they get taken to court and must hand over the payment.

9. The Tenant Can Purchase the Property

The tenant can purchase the property if they can afford to do so. The landlord must be open to accepting the tenant’s bid, especially in places like Washington, where the residing tenant has the first right to buy.

In any case, the tenant should be given 30 days to decide if they want to buy the property before the sale becomes open to the public. The landlord can’t simply tell them there’s a new owner; they must leave immediately.

10. The Tenant is Entitled to Relocation Assistance

Sometimes, the landlord might have to help the tenant find a new place to live. This applies specifically to low-income tenants, and the amount they’re entitled to depends on the state. In places like Seattle, the landlord must pay half of the relocation fee.

This is why it’s essential to check local laws to see if the landlord is legally required to pay your relocation fee. If your state doesn’t have relocation laws, you should discuss it with the landlord. However, relocation assistance would make the property sale process easier to push through.

Maximizing Tenant Rights with the SCRA

Conducting proper research is vital if you want to maximize your rights as a tenant. You must conduct due diligence because the rules vary from state to state.

If you’re dealing with a military client, things can be a bit complicated. That’s where SCRACVS can be of service. Click here to sign up at SCRAVS and verify the active duty status.

FAQs

What are the rights of a tenant when the landlord sells property?

According to first-refusal laws, the tenant has the right to buy the property first. They should also be given ample time to vacate the property and be given a habitable environment.

How long do tenants have to move out after a house is sold in NY?

Tenants in New York are given at least 30 days to leave a property. However, the type of lease would affect how much time a tenant is provided.

What is the landlord-tenant law in the United States?

This law provides guidance for tenants and landlords in the country. It details what’s allowed and prohibited, but there are variations per state.

Do I have to allow potential buyers to view my rental unit?

You have the right to say no if the entrance is sudden. The landlord should give you 24 to 48 hours before letting someone in your rental unit.

Do I have the right to stay in the property after it’s sold?

If your contract hasn’t ended yet, yes, you can still stay at the property. You should receive a written notice asking you to vacate the property first.

Can I break my lease early if my landlord sells the property?

Yes, but it depends on your agreement with the landlord. You’re not legally obligated to leave the property if your lease isn’t over yet.