Finding the perfect house for rent is a goal for many, but the reality is that even the best living situations can change. If a landlord decides to sell the property, it can leave renters uncertain and stressed.
While landlords have the right to sell their property at any time, there are legal protections to ensure renters aren’t left in a tough spot. Understanding these protections and the steps landlords must follow during a sale can help renters navigate this potentially unsettling situation more confidently. It’s also crucial to know what actions can be taken if renters feel their rights are being violated.
What Are the Landlord’s Obligations When They Want to Sell?
When renting a new property, one of the most important steps is to carefully review the lease agreement. This contract is legally binding and outlines the rights and responsibilities of both the landlord and the renter, including what can and cannot be done in case of a sale.
Let’s expand on the obligations landlords have to their renters when they wish to sell the property:
1. Honor the Current Lease Terms & Duration
When a landlord decides to sell, the first thing to check is the lease duration. Most leases are long-term, typically 6 to 12 months and sometimes even longer. Regardless of when the landlord decides to sell, renters cannot be asked to leave before the lease expires.
Even if the property is sold during the lease term, the new owner must still honor the existing lease terms and duration as long as the property remains occupied by the renter.
2. Give Reasonable Notice
Renters with a month-to-month lease have fewer protections than those with long-term leases when the landlord decides to sell. However, the landlord must still provide adequate notice before terminating the lease due to the sale. In most areas, this notice period ranges from 30 to 60 days, although it may extend to as long as 90 days in some locations.
3. Landlords Cannot Evict Renters When Selling
When a landlord decides to sell, any notice given to the renter must be a “notice to vacate,” not an eviction notice. In most cases, it’s illegal for a landlord to evict a renter simply to facilitate the sale of the property. A notice to vacate provides much more favorable terms for renters than an eviction notice.
Beware of “Lease Termination Due to Sale” Clauses
While renters typically have little to fear when a landlord decides to sell, some exceptions should be considered.
Some lease agreements may include a “lease termination due to sale” clause, which allows the landlord to end the lease if the property is sold. Although such clauses are relatively rare, renters need to understand the language they might encounter. A typical “Lease Termination Due to Sale” clause might read:
“In the event of a sale, the current lease agreement will become null and void upon the new owner’s acquisition of the property.”
Other variations may specify the time a renter has to vacate once the landlord notifies them of the sale. These clauses can apply to short- and long-term leases, removing certain tenant protections. Fortunately, many regions do not permit such clauses, but it’s always wise to carefully review the lease agreement to avoid surprises.
Understanding Renter Rights When Landlords Sell
When a landlord decides to sell their property, existing renters must be fully aware of their rights. This knowledge empowers renters to assert their protections and understand when it may be necessary to escalate the situation or seek legal assistance.
1. The Right to Fair Notice
In any legal rental agreement, renters must be given proper notice before being required to vacate. There are no circumstances where a renter can be forced to leave immediately. Renters are entitled to sufficient time to find alternative housing, and landlords who attempt to evict renters without providing the required notice typically violate the law.
2. The Right to Continue Their Lease Even After a Sale Is Complete
When a property is sold to a new owner, they may choose to continue renting it out. However, if the sale occurs during an existing lease, the renter has the right to stay until the lease term expires (unless the lease agreement explicitly states otherwise).
3. The Right to Negotiate a Relocation Allowance From the Landlord
Renters may have the opportunity to negotiate an early lease termination with the landlord, especially if the landlord prefers the renter to move out before the property is sold. If both parties agree, the renter may be able to request relocation fees. Furthermore, if the lease is ended early due to the sale, the renter should not be penalized for breaking the lease agreement.
4. Basic Renter Rights Must Continue
Even when a landlord decides to sell, they are still required to uphold all fundamental renter rights. They cannot evict a renter without a valid, legal reason and must continue to perform necessary maintenance and respond to repair requests. Additionally, landlords must provide notice before entering the rental (except in emergencies) and respect the renter’s right to quiet enjoyment, ensuring the renter can live in the property without unnecessary disturbance.
5. The Right to Quiet Enjoyment
This right ensures that renters are not subjected to undue disruptions during the sale process. Landlords are prohibited from scheduling construction work, house staging, or real estate viewings without proper notice and must allow renters to be present during these visits. Typically, landlords must provide at least 24 hours notice before third parties can enter the property, and renters have the right to be present during these activities.
What Can Renters Do if Their Rights Are Being Violated?
If a landlord violates a renter’s rights during the sales process, renters should first notify the landlord of the breach and request that it be corrected. If the issue persists, renters can escalate the matter by seeking advice from a real estate lawyer or contacting the local housing authority for further support.
How To Deal with the Sale Process
When a landlord decides to sell, it can be frustrating for renters. Even if their rights are respected, the process often brings disruptions, like home viewings, open houses, and inspections.
To manage the situation, it’s important to maintain open communication with the landlord. Staying informed will help avoid surprises. If any third parties, like the listing agent, show up unannounced, it’s easier to address the issue directly with the landlord and find a solution.
Taking this approach will make the process smoother for everyone and may even lead to a positive reference from the landlord.
Image credits: Perfect Wave; jesadaphorn/Shutterstock.com
