Legal Question in Real Estate Law in California
Lease
i just want to ask if a landlord can make a lease, where both tenant and landlord signed and agreed upon it...and while the lease is in effect turn around and say they are selling the house, when the lease barely started.? please help asap! i would greatly appreciate it thanks!
4 Answers from Attorneys
Re: Lease
Yes, the landlord can sell the house. However, the lease is still valid and binding on the new owner.
Re: Lease
The lease is valid, even if the owner sells the house, unless there is a provision in the lease agreement that says that the lease is terminated on sale.
Re: Lease
It's legal, proper, and happens frequently. The new owner takes 'subject to' the existing lease or leases.
Once in a while, an existing lease will contain a clause stating that the lease terminates, or can be terminated at someone's option, upon a sale. You should review your lease to verify that it does NOT contain such a provision. If it does not, you simply have a new landlord but your rights as a tenant are undisturbed.
If you made a security deposit, the seller and buyer can handle it in either of two ways. The more usual way is that the seller gives the deposit to the buyer to hold. Less often, the seller refunds the deposit to the tenant and the new owner then re-collects it from the tenant. See Civil Code section 1950.5(f). Either way, you should receive notice of how it's handled.
Re: Lease
Yikes.
You are living in a house, presumably with a lease for a term of some months or longer. Any purchaser will be bound by your lease since you are visibly in possession. If you are on a month to month lease, someone will have to give you 30 days notice to leave before anyone can begin eviction proceedings, sale or not.
Let me know if you need further assistance.