What Happens If My Landlord Sells the House During the Lease Period?
You may not like your new landlord as much as you did your last one. Or maybe you'll like him more. That's the only difference you are likely to notice in your day-to-day life between landlords because your lease remains in effect no matter who owns the building and how many times it's sold. There are a few steps to take, however, when a new owner steps into the scene.
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Understand the Rules
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Before you approach your new landlord, make sure you understand your rights. If you have a fixed-term lease, the new landlord cannot make any changes to any terms in the lease -- not to the rent, when it's paid, who lives in the unit, pets, etc. If you live in a city subject to rent control, you have even more rights. Regardless of when the lease expires, the rent cannot be raised more than the ordinance allows. Because most rent control ordinances don't allow eviction without cause, that also means the new landlord can't evict you when your lease does expire. Some rent control ordinances do allow the owner to evict you so he can move in once your lease expires.
Talk to Your Landlord
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Sooner or later your new landlord will be around. Go ahead and gently ask him his intentions. He doesn't have to spell out his plans, but he very well might. If he says he'd like to move his mother-in-law into your unit when your lease expires, at least you'll have plenty of advance notice. If he says he intends to rent the place out just like your former landlord, you'll be on equal footing with where you were before the building was sold.
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When the Lease Expires
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Once the lease expires, the new landlord can raise the rent, evict you, change other lease terms or leave things the way they are. In most places, a rent increase or eviction requires a 30-day notice; some places require a 60-day notice for an eviction. Most leases roll over to a month-to-month tenancy after the fixed term expires. Read over your lease to ensure this is the case. If you would feel more confident in making future plans with another fixed-term lease, you have nothing to lose by asking your landlord for one.
Foreclosure
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Rules are slightly different when the house changes ownership through a foreclosure. As of 2009, a fixed-term lease must still be honored, but a 90-day notice is required for an eviction under the Protecting Tenants at Foreclosure Act. Rent control regulations that prohibit eviction also still apply.
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References
- Photo Credit for sale sign image by jcpjr from Fotolia.com
