Legal Question in Real Estate Law in Massachusetts

Re: Is tenant's lease still in effect if I sell?

The lease will be binding on the new owner. The tenant will have whatever

protections are provided by the lease. You can return the security deposit to the

tenant before selling the property or you can transfer the security deposit to the new

owner. If you return the security deposit you should have documents signed by the

tenant indicating the return.

Alan Pransky

Law Office of Alan J. Pransky

20 Eastbrook Road

Re: Is tenant's lease still in effect?

"Were I to sell my condominium in Mass. while my current tenant's lease is still

in effect, is that lease still valid with the new owner?"

YES.

"In other words, the new

owner would not be able to kick her out until her lease is up, right?"

RIGHT! You are 2 for 2 ...

"Further, if

the lease is still valid, would that mean that I would assign said tenant's

security deposit to the new owner or, at the point of sale, give it back to the

tenant and let her work out a new arrangement with the new owner?"

Talk it over with both parties; either way can be worked out, as long as there

is proof of the agreement in writing, etc.

If you give the buyer

the deposit and don't follow the statute, you could

be on the hook to the tenant later for 3 times the

deposit (or 3 x rent) PLUS attorney's fees required

to collect it from you.

The state law provides the usual way of handling it,

which is that the security deposit goes

to the buyer, and you should then send notice

(certified, I advise, return receipt requested,

please!) to the tenant containing the information

described in section (a) which I quote below, extracted

from MGL ch. 186, sec. 15B.

(In this statute, you are the lessor, and 'successor in

interest' is your buyer.)

"(5) Whenever a lessor who receives a security

deposit transfers his interest in the dwelling

unit for which the security deposit is held,

whether by sale, assignment, death, appointment

of a receiver or trustee in bankruptcy, or

otherwise, the lessor shall transfer such

security deposit together with any interest

which has accrued thereon for the benefit of

the tenant who made such security deposit to

his successor in interest, and said successor

in interest shall be liable for the retention

and return of said security deposit in accordance

with the provisions of this section from the

date upon which said transfer is made ....

The successor in interest shall, within forty-five

days from the date of said transfer, notify the

tenant who made such security deposit that such

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Stuart Williams

Law Offices of Stuart J. Williams

21 Walter St.

Re: Is tenant's lease still in effect?

[ continued from prior message ]

security deposit was transferred to him and that

he is holding said security deposit. Such notice

shall also contain the lessor's name, business

address, and business telephone number, and the

name, business address, and business telephone

number of his agent, if any.

Said notice shall be in writing.

Upon such transfer, the lessor or his agent shall

continue to be liable with respect to the provisions

of this section until:

(a) there has been a transfer of the amount of the

security deposit so held to the lessor's successor

in interest and the tenant has been notified in

writing of the transfer and of the successor in

interest's name, business address, and business

telephone number;

(b) there has been compliance with this clause

by the successor in interest; or

(c) the security deposit has been returned to the tenant."

See

http://www.magnet.state.ma.us/legis/laws/mgl/186%2D15b.htm

Stuart Williams

Law Offices of Stuart J. Williams

21 Walter St.

Newton, MA

02459-2509

[email protected]

tel (617) 527-0050

Thank you for your assistance in this matter.

Don't thank me, just send me lots of money.

Good luck.

Stuart Williams

Law Offices of Stuart J. Williams

21 Walter St.