Legal Question in Real Estate Law in Virginia

Is my lease contract with the Landlord or with the Reator (his angent) or the La

My landlord is bankrupt and my residence will be auctioned in March 02. I informed the Realty Agency (his agent) that I consider the auction notification from the Trustee as a breach of our contract by the landlord, and that I intend to keep February's rent to cover my relocation expenses. The agent I talked to advised me that I must pay it because the contract is with the Realtor and not with the landlord. After a long discussion, the agent also tells me that the Realty is not responsible for any financial hardship caused to me because they do not own the house. Is the Realtor right? If so, who is responsible for breach of contract and who can I sue? Thank you much for your help.


Asked on 1/26/02, 2:40 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Is my lease contract with the Landlord or with the Reator (his angent) or th

You need to determine whether or not the sale is subject to your lease, or if the lease has been rejected. If the former, you must keep paying your rent (to the trustee, probably, until the property has been sold). If the lease has been rejected, you may have a right to reduce the rent if services are diminished, but you should still have to possession of the premises. See a lawyer immediately. Note that if the sale is a foreclosure on a mortgage/deed of trust, it is probably NOT subject to your lease, you would not have a right to continued possession, and you would have a claim against the bankruptcy estate for your damages for breach of lease by the landlord (but in most cases such claims are worthless). You cannot sue the landlord because bankruptcy law bars such suits.

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Answered on 1/26/02, 2:47 pm


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