What Renters Should Know when a Landlord Sells Their Building

Does the landlord have an obligation to inform tenants of an impending sale. Yes. While not all landlords do this, by most state laws tenants must be informed when a building changes owners. The reason for this is that responsibility for both the security deposit and the lease transfer with the building to the new owner. If anything happens after the sale, the former landlord is not responsible; the only exception to this is if the security deposit was not transferred which then becomes a civil court case. Do tenants need to move out if the building is for sale. Most times realtors will want a building rented and active. This shows income being generated and the current condition of the property.

Does the new landlord have the obligation to continue the current lease. No. Most landlords will honor the old lease until the end, but they don't have to. A new owner can create a new lease, lease terms and rent amounts. Your lease was with the old landlord, in many states the lease is not transferred with the building but selling a building with current leases in place makes the building sell faster. If you have a written lease, you will need to either re-sign the agreement with the new landlord (which is often a paper stating that you both agree to continue the lease as is), or sign a new lease. Be aware that if you have pets, and the old lease didn't have a "no pets" clause, this does not mean the new landlord will continue this practice. The best thing to do is introduce the pets and let the landlord see how well behaved the pets are and how your residence is kept. If the new landlord will not allow pets, they must give you time to properly place the pets in a good home.

Should tenants be advised when a realtor is showing the building. Realtors in general will be considerate enough to inform tenants when they are showing the building, as well as ask if they can show the inside of your apartment. There is no law stipulating this, but is a common courtesy. If a person shows up without a realtor or the landlord stating they were given permission to look around, do not let them inside your apartment; instead, ask them to come back with the realtor or landlord. You have that right. If the landlord shows up with people to look at the unit unannounced, you have the right to ask them to return later.

What happens to advance rent payments. When a landlord sells their building any prepayments or deposits are supposed to, but don't always, transfer to the new owners. This is the reason tenants are advised not to pay in advance. If you do pay in advance, get receipts for each month. You will need to check with the new landlord to see if the money was transferred; if it wasn't you will need to use the receipts as proof of payment during a civil claim against the former landlord to regain the rent payment. Until that situation is resolved, you will still be liable to the new landlord for any rent payments due for the current month and beyond.

Who do I use as a reference when I move out. You can use the old landlord if you still have their address, but the new landlord will be a more current reference if you have continued to live in your current residence for a some time after the building was sold.

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