What Are Your Rights When Your Landlord Sells The House You Are Renting?

When your landlord sells the house you are renting, it can raise many concerns about your lease agreement and what you might face with new ownership. Tenants usually worry about eviction, raised rents, lease changes, losing their security deposit, unexpected inspections or repairs, or changes in the quality of the service they receive. However, you'll be happy to know that there are some common protections for tenants in such situations.

First, know that it's common for your lease agreement to be transferred to the new owner. This means that its terms and conditions, like the duration and rent amount, will remain the same, and you typically have the right to continue occupying the property until the end of your lease term. You have the right to receive an evacuation notice of around 1 to 2 months if applicable, and if you have to vacate, you also have the right to receive a payout lease termination, a relocation fee, and the right to sue the landlord in small claims court if you didn't have sufficient notice or simply for cutting the lease short.

To protect the rights and interests of the tenants, here are some things that a landlord generally cannot do when selling a rented house. First, the sale of a property does not automatically give the landlord the right to evict the tenant or alter or terminate an existing fixed-term lease or specific month-to-month agreement. The lease agreement is still valid, and the new owner or landlord simply takes over the responsibilities and obligations of the previous one. Some rental contracts, however, have a "lease termination due to sale" clause, which means you might have to vacate. Still, new owners might want to sign a new lease with the current tenants, so check if this is the case.

The new landlord, like the previous, must adhere to the rules regarding entry to the rental property. They must provide proper notice as required by local laws before entering the premises for inspections or repairs. A change in ownership also doesn't allow a landlord to retaliate against a tenant who has exercised their legal rights, such as reporting maintenance issues or filing complaints. Retaliatory actions by the landlord are typically prohibited.

If your landlord sells the house you are renting, it's crucial for you to communicate with the current landlord and the new owner to address any concerns you have and understand the implications of the sale. The old landlord should let you know who the new landlord is and how you can contact them. When you've established clear communication channels with them, you should receive updates on things like new management plans or new procedures for making payments or putting in maintenance requests.

If you have to vacate the property, you are still entitled to get back your security deposit. A landlord generally has between two weeks and two months to return your deposit. If you remain, the new owner typically becomes responsible to pay you back when your lease ends. Ultimately, your rights as a tenant depend on the laws and regulations of the jurisdiction in which you reside, so always consult those or seek legal advice to fully understand your rights. Reach out to a lawyer or your local housing authority if you ever feel like your rights are being violated by a landlord.