Is lease in effect if property changes hands? (sale, apartment)

[thisiswater]

We have 2.5 years left on a 3 year lease and our landlords want to sell. They seem to think this sale breaks the lease. My understanding is that the lease stays in effect through its term. Many thanks in advance.

[sawyer2]

Originally Posted by thisiswater

We have 2.5 years left on a 3 year lease and our landlords want to sell. They seem to think this sale breaks the lease. My understanding is that the lease stays in effect through its term. Many thanks in advance.

That is correct - lease still stands through change in ownership - unless there any additional clauses/riders in the lease that speak specifically to impact of sale/change in ownership (very unlikely)

[MrLinderman]

Originally Posted by sawyer2

That is correct - lease still stands through change in ownership - unless there any additional clauses/riders in the lease that speak specifically to impact of sale/change in ownership (very unlikely)

To expand on this just to give some context as to why this is generally the case:

OP, when you signed the lease, you gained what in the legal world is called an "interest" in the property. You don't own it, but the lease grants you some rights with respect to the property. Just because the person with whom you made the lease agreement with sells his "interest" (aka his ownership) in the property does not mean your interests magically vanish. Generally speaking, another party can't contract away a third party's rights without their consent. So as a third party to the sale agreement, unless you specifically (through an agreement, or wording in the lease) agree to terminate the lease, your lease is still valid, regardless of who owns the property.

[porterhouse]

This may be helpful: http://www.mass.gov/ago/docs/consume...nant-guide.pdf

I'm not sure where you live but bring your lease to a tenant assistance organization in your area, and do not let your landlord bully you. Long story but I have an employee who was recently strong armed out of their apartment by a valid lease by a landlord who had just purchased the building and wanted to condo it out. She didn't want to make waves as the tenants of the other 2 units had already agreed to move out.

[sal1181]

yes the lease stays in effect even if he sells it.

[chicagoliz]

Originally Posted by thisiswater

We have 2.5 years left on a 3 year lease and our landlords want to sell. They seem to think this sale breaks the lease. My understanding is that the lease stays in effect through its term. Many thanks in advance.

Why do they think that? Was there special language in the lease to that effect?

[thisiswater]

Originally Posted by chicagoliz

Why do they think that? Was there special language in the lease to that effect?

No, there is no special language in the lease.

The owners are a young couple who can't afford their current mortgage plus the costs associated with the mortgage and fees, upkeep, taxes, etc., on the condo they are renting to us. When I pointed out that I believed the lease will stay in force even if they sell, one of the owners became very emotional and stated that she could not guarantee that a "buyer would want the property as an investment. They would be more likely to want it as a residence."

I have compassion for their circumstances, but more compassion for ours, which is... we need to stay here for the duration of the lease.

[MikePRU]

Originally Posted by thisiswater

No, there is no special language in the lease.

The owners are a young couple who can't afford their current mortgage plus the costs associated with the mortgage and fees, upkeep, taxes, etc., on the condo they are renting to us. When I pointed out that I believed the lease will stay in force even if they sell, one of the owners became very emotional and stated that she could not guarantee that a "buyer would want the property as an investment. They would be more likely to want it as a residence."

I have compassion for their circumstances, but more compassion for ours, which is... we need to stay here for the duration of the lease.

Sounds like they're not charging you enough rent. Landlord 101 is charge a lease rate that at a minimum covers your costs of ownership.

If I were you, I would negotiate an exit payment. In exchange for breaking the lease by X date the owner will pay you $Y so that they can sell the unit to someone who wants to occupy it. Then you find yourself a new place to rent because I promise you that living in a property being foreclosed upon will be an unpleasant experience.

[MrRational]

Originally Posted by thisiswater

No, there is no special language in the lease.

The owners are a young couple who can't afford...
...and stated that she could not guarantee that a "buyer would want the property as an investment.
They would be more likely to want it as a residence."

First... they need to receive an actual offer to buy it.
IF... that is not from another "investor" then you can cross that bridge when you all get to it.

Unless your terms are way below market a new investor/owner shouldn't have any effect on you.
But if you ARE being undercharged...

If the need arises ON THEIR PART to have a vacant unit for the sale to close...
then they'll have to make it worth your while to pack up and move before settlement.

But until they have a real offer they aren't likely to have the CASH needed to pay for your keys.

... we need to stay here for the duration of the lease.

Get over it. Really.

[thisiswater]

"But until they have a real offer they aren't likely to have the CASH needed to pay for your keys....Get over it. Really.[/quote]

Great advice. I've been assuming they would have no money to make it worth our while to move but I suppose if the right buyer comes along ... they will. I'm not married to this house!