Tenant’s Rights When Landlord Sells Property – A Guide

You’re provided some rights when you sign a lease or rental agreement. Even when a landlord sells property, you’re entitled to select privileges. But what exactly are these rights? We’ve listed essential privileges tenants should be aware of when the rental property is being sold.

1. Landlords Can’t Evict Active Duty Service Members Because of Nonpayment

Active duty military personnel are given legal and financial rights thanks to the Servicemembers Civil Relief Act (SCRA). The SCRA says it’s illegal for a landlord to evict active duty personnel and their dependents due to nonpayment. The landlord must get a court order to continue with the eviction.

However, other material breaches of the contract would allow the landlord to start evicting the tenant. Every landlord should confirm if their tenant is protected by SCRA rights before signing a lease. Likewise, a service member should be able to prove they’re eligible for SCRA privileges.

2. You May Be Entitled to Lease Termination Payout

A lease agreement is legally binding, and there shouldn’t be any issues if the sale process happens when the lease expires. But what if the new owner intends to move into the property before the fixed-term lease ends? In that case, the landlord can offer tenants a lease termination payout known as cash for keys.

This payment is compensation to get the tenant to vacate the property before the fixed-term lease expires. However, the tenant has the right to refuse to accept this payment.

3. There Should be a Reasonable Notice Before The Property is Shown to a Potential New Owner

As a tenant, you should be given enough lead time to prepare for a site viewing from potential buyers. The landlord isn’t allowed to show the rental property anytime they want to. Most states mandate the landlord to let tenants know at least 24 to 48 hours in advance.

If a state doesn’t impose that particular window, the landlord should at least provide reasonable notice periods. The landlord and the tenant should agree upon this period. As a tenant, you’re entitled to privacy, and the landlord can’t enter the rental property on a whim.

4. You Can Live in the Property as Agreed in the Original Lease Agreement

Let’s say the property sale comes through. As a tenant, you have the right to stay in the property as agreed upon in the original rental agreement. Unless you’re willing to renegotiate the lease terms, the landlord can’t kick you off a property whenever they please.

As long as you pay rent on or before the deadline, you can live in the property as initially agreed upon. Likewise, the new owner must respect the original lease terms.

5. You Might Get Relocation Assistance

In some instances, the landlord might be obliged to help you find a new place to live. This privilege is given specifically to low-income tenants, and the relocation assistance would depend on the state and local jurisdiction. For example, the landlord must shoulder half the relocation fee in Seattle under certain conditions, such as demolition or substantial renovation.

This is why it’s vital to confirm local legislation to determine if the landlord must pay you a relocation fee. If your state doesn’t impose this, you should talk about it with your landlord. Relocation assistance would make showing the property to new buyers easier than a tenant-occupied property.

6. The Security Deposit Must Be Returned

Even if the lease expires, you should be returned your security deposit. The landlord can subtract select fees, like repair expenses beyond the normal wear and tear and unpaid utility bills. The landlord must list each deduction and justify why the deposit was deducted.

The security deposit must usually be returned a month or 30 days after the tenant leaves. However, the landlord can keep the security deposit if the tenant vacates the property while escaping their rent responsibilities.

7. You Can Sue the Landlord in a Small Claims Court

Getting kicked out of a rental property can be such a nuisance. In some cases, you can sue your landlord in a small claims court, but for what? It depends on the local laws and what’s stipulated in your lease agreement.

You can sue the landlord for ending the fixed-term lease prematurely or not returning your security deposit. You can also sue your landlord for withdrawing some service like security to encourage you to leave the property. While getting sued won’t stop the sale from pushing through, it might deter some potential buyers from transacting with the property owner.

8. You’re Given First Right to Purchase the Property

If the landlord sells the property, you have the first right to buy it if it goes on sale. This applies to some areas like Washington, DC, where your landlord must send a letter of intent to put the property up for sale. This letter should include all pertinent information on the property.

You are given approximately 30 days to determine if you’re purchasing the property. However, even if the property hits the market, you can still buy the property as per the right of first refusal law.

9. You Should be Given a Notice to Vacate the Property

Your landlord should give you proper notice of when you’re required to vacate the property altogether. This date is usually noted on your lease agreement. Even if the place is sold, the lease terms must be followed. In the case of a month-to-month lease, the landlord should still give you proper notice.

10. The Property Should be Well Maintained

You have the right to a habitable and clean environment while living on the property. Even if the owner can enlist a real estate agent to sell the place, they can’t shut down utilities to coerce you to leave. Landlords must also make necessary repairs if the damages are covered by the contract.

You can withhold rent or break the lease without paying extra fees if the landlord doesn’t fulfill their responsibilities because they intends to have the place sold. However, you should have the money withheld ready if you’re taken to court and legally obligated to pay.

Conclusion

The existing lease plays a vital role in your rights as a tenant. It’s essential that you familiarize yourself with the privileges you’re afforded because you signed and abided by a legally binding contract.

If you’re a service member, you should prove you’re entitled to SCRA rights. SCRACVS can help you with the evidence you need to have your SCRA privileges respected. Click here to sign up at SCRAVS and verify the active duty status.

FAQs

Can I still occupy the property once it’s sold?

Yes, even if the landlord sells the property, you can still live there as long as the lease hasn’t expired. You should refer to your existing lease to determine until when you can live in the property.

Can I sue my landlord for evicting me?

You can do so if the landlord violates your tenant’s rights. Your rights would depend on state regulations, but in general, you can sue your landlord if they evict you before the fixed-term lease ends.

Do I have to vacate immediately if my landlord sells the property?

No, you have the right to occupy the property as long as your existing lease hasn’t expired. You should refer to your lease agreement on the proper notice you’re afforded should your landlord decide to sell the property.

Can I sue my landlord for violating my rights during the sale process?

Yes, you’re provided certain rights as a tenant. You should refer to state laws on which particular rights you’re provided, but in general, the landlord shouldn’t force you to move out before the lease term ends.

Am I entitled to compensation if asked to leave early?

Yes, the landlord can provide you with a lease termination payout if they want you to leave the property before the lease ends. However, you’re not obliged to accept the payment and can choose to stay in the property.