Legal Question in Real Estate Law in California

Re: Premature Lease Termination

Unless yuor lease specifically states that the lease is terminated upon the sale of the property, the tenant is not required to move. Just as the lease protects you from the tenant leaving prior to the end of the lease, it also protects the tenant against being kicked out for other than a breach of the lease.

A verbal agreement would probably not hold much weight, since it has to do with a right in real estate.

Just keep on negotiating.

Re: Premature Lease Termination

First, I would ask whether the tenancy has been disclosed to the buyer, and then, whether the purchase agreement could possibly be construed as "subject to" the existing lease (this is commonplace), or whether the buyer expects possession upon closing.

Next, I would disagree with Mr. Koenen about the enforceability of your oral agreement. I believe it is at least theoretically enforceable. Take a look (on line, or at a law library) at Civil Code sections 1624(a)(3) (Statute of Frauds for real property and leases), 1698(c) (oral modification of written contracts, 1698(d) (oral rescission, oral novation, etc.) and 1933(2) (termination of a hiring by mutual consent).

Taken all together, and upon reading several cases, I believe you could successfully enforce your agreement through an unlawful detainer action on the basis that the lease had been modified, rescinded or that a novation occurred.

You have a practical problem with proof and credibility, but the law supports enforcement of the oral contract you made with the tenant.

Please feel free to contact me for further discussion and possible representation.