If you just found out your landlord is selling the house you’re renting, don’t panic and don’t start packing just yet. The first thing to do is to read through your lease agreement. If you signed a lease agreement with a fixed-term lease (like a one-year or six-month lease), your current landlord and your new one will be bound to honor it.
That means that your landlord won’t be able to legally kick you out until at least the end of the lease. Even then, the new owner may choose to extend your lease, and things could continue more or less as they have been.
The main exception is if your lease includes a “lease termination due to sale” clause that lets the landlord end the lease early if they sell the property. These clauses aren’t standard and are uncommon in residential leases. It’s much more common for the lease to transfer to the new owner.
What If You Rent Month-to-Month?
If you rent month-to-month, things are a little different. Without a fixed-term lease, a landlord can end a lease with proper written notice. What is “proper written notice”? It depends on the terms of the lease and on state law. Often, with a month-to-month lease, the notice period is one month or 30-60 days, but make sure to check your lease and the laws where you live.
If you’re in a situation where you don’t have a written lease at all, the law may treat you like a month-to-month tenant. You should still be given proper notice before being told that it’s time to move out.
What If The House You’re Renting Goes Into Foreclosure?
Foreclosure is a different situation from a regular sale. If the house you’re renting goes into foreclosure, you might have more protections than if it was just sold. Under the federal Protecting Tenants at Foreclosure Act, tenants who live in foreclosed residential properties generally have the right to stay through the end of their lease.
The exception is when the buyer plans to live in the home as their primary residence. Even then, tenants are generally entitled to at least 90 days’ written notice before they have to move out. Month-to-month tenants typically get that same 90-day notice.
Some states add even more protection on top of the federal rule. As always, the details matter, so if you receive a notice about the foreclosure or an eviction notice from a new owner, talk with a landlord-tenant attorney as soon as possible.
Can Your Landlord Show the House While You’re Still Living There?
If your landlord plans to sell, you can expect a for sale sign, an online listing, and a few strangers walking through your living room. But that doesn’t mean that a real estate agent can just show up whenever they feel like it.
In most states, the law requires landlords to give tenants notice before entering the property. 24-hour notice is the most common, but some states also require 48 hours. Other states require “reasonable notice,” which leaves some room for interpretation. Check your lease, too, to see what the lease terms say about this situation. Many leases have a showings clause that allows the landlord to access the property for the purpose of selling it.
You can often make things easier on yourself by asking your landlord to agree to a showing schedule. Many landlords and tenants agree to a certain window of time that showings can occur. That way, the tenant isn’t caught off guard. It’s also a good idea to put away your valuables when your landlord is showing the property, just in case.
Can the New Owner Change The Rules?
When a new owner assumes the property, they generally aren’t allowed to end an existing fixed-term lease. That means that you won’t face immediate eviction. It also means that the current terms — including the rent amount and the move-out date — should stay the same until the lease expires. The new owner usually can’t add new rules either. So, if you’re in an apartment that allows pets, you don’t have to worry that Fluffy will suddenly be banned.
Some apartments are subject to rent control. If you’re in a rent-controlled or a rent-stabilized unit, the existing rent amount should stay in place under the new owner. A new owner can’t drastically raise your rent just because they bought the building. However, most rent control laws do allow for limited annual rent increases. Those will still remain in place.
Can the New Owner Offer Me Cash to Move Out (Cash for Keys)?
Sometimes the new owner would rather have an empty house than one with a tenant already living there. When this happens, new owners typically offer existing tenants cash to move out. This is commonly called “cash for keys.”
You don’t have to accept the offer and move out. If you have a valid fixed-term lease, you generally have the right to stay until it ends. However, the new owner’s offer might be worth considering — especially if you plan to move out eventually.
If you’re considering the offer, make sure to get it in writing. Ask what will happen to your security deposit. And make sure you consider the full cost of the move. Moves are often more expensive than we anticipate. Plan for all expenses involved, from the cost of hiring a moving truck to overlapping rents to new security deposits.
What Happens to the Security Deposit When There’s a New Owner?
Just because there’s a new owner doesn’t mean that you should lose your security deposit either. Your security deposit should transfer directly to the new owner, and they’re responsible for refunding it to you when you move out. However, rent and security deposit law can be complicated, so talk with a lawyer if you have questions or if you have trouble getting your security deposit back.
What If The New Owner Tells You To Leave?
Of course, just because the law says that you can stay in your home until your lease expires doesn’t mean that the new owner will follow the rules. If the new owner asks you to start packing right away, remember that your lease and often state laws give you certain tenant rights — although you might have to get legal help to protect them. When in doubt, talk with an attorney who is familiar with landlord-tenant law in your area.
