Legal Question in Real Estate Law in California
Does changing the ownership of a property terminates the leaseing contract
Hi,
An apartment landlord has one year leasing contract with the tenant via apartment property management company. The contract is not due for the one year term until this Dec. Landlord would like to terminate the contract in August. (next next month)
Question:
If the landlord (parents) sell the apartment to his family member (son) and pay all the required transaction fees (sales tax, property tax, title company, and broker commissions,etc), Can the new apartment owner (son) terminate the current leasing contract and use the apartment for self use (son moves into the apartment)
3 Answers from Attorneys
Re: Does changing the ownership of a property terminates the leaseing contract
It depends on what your contract says.
Re: Does changing the ownership of a property terminates the leaseing contract
Unless lease says otherwise, it does not terminate the lease.
www.4thelaw.com
Re: Does changing the ownership of a property terminates the leaseing contract
No, when leased property is sold to a new owner, the new owner takes ownership subject to any existing unexpired lease UNLESS the lease contains a specific provision stating that a sale of the property terminates the lease or gives the buyer a right to terminate.
Such provisions are somewhat unusual but they are occasionally found in leases where the original owner or landlord had a long-term plan involving possible sale to someone with a different use of the property in mind.
Also, the provisions might be illegal or unenforceable under some local rent control ordinances, but generally they are permissible.
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