Okay, so your landlord just announced they’re selling the property and slowly the panic starts to set in as a series of questions come to your mind. Questions like, do I have to pay rent if my landlord is selling the house, what are my rights as a tenant, etc.
In short, Yes, you still have to pay the rent even if the landlord is selling the house. If you landlord is selling the house, it will not impact the terms of lease. However, there are a lot of consideration regarding the rights of landlord and tenants that one should know.
In this post, we are going to understand if you would still have to pay rent if your landlord is selling the house. We will also discuss your rights as a tenants. And, by end of the post we will address some common questions that you may have.
Do I have to pay rent if my landlord is selling the house?
When your landlord puts the house up for sale, you have to pay rent if there’s still an existing lease going on.
According to the Texas State Law, the sale of the property does not cancel your lease agreement as long as it does not terminate on sale of the property. Instead, the new owner just switches position with your current landlord and is legally bound to honor the terms of your lease.
This means that as long as you’re covered by a fixed-term lease (or even a month-to-month arrangement with proper notice requirements), you must continue to pay rent as agreed, even after the landlord has been changed.
For tenants, having a lease provides protection along with strict notice requirements. However, there are certain scenarios where the tenants may have to vacate, such as:
- The property has three or fewer residential units and the buyer wants it vacant.
- The sales contract requires the units to be empty before closing.
- The new owner plans to occupy your unit.
- Your lease is month-to-month or expiring soon.
- The contrast of property sale needs units vacant
In most cases, tenants are entitled to receive two months notice before being evicted. If there’s a written lease in effect, then no action will be taken by the landlord until the lease expires. So yes, you will pay the rent as long as you live and until your lease expires.
When it comes to lease terms, they are set by the landlord but they must be exercised in compliance with the federal, state, and local laws. Those include:
- Lease duration (month-to-month, annual, etc.)
- Rules on pets, smoking, and subletting
- Security deposit policies
- Receive full and timely rent payments
- Charge late fees (if it’s mentioned in the lease)
- Pursue eviction for non-payment
- Deduct damages from security deposits per state law
They must follow fair housing laws and cannot discriminate based on race, religion, or other protected characteristics. And when it comes to eviction, the landlord must provide a legal notice.
If you are looking for more information or want deeper understanding or for guidance in specific situations, it’s best to consult a local attorney or a property manager.
Tenants rights when landlord sells property
When the landlord sells the property, tenants have the right to stay until their lease expires and they must pay the rent as long as they live. In this section, we are going to discuss what rights you have as a tenant.
By having an idea on what these rights are, you can protect yourself from in helpless situations:
Lease Agreement Continuation
If you have a signed or written lease, it’s still valid even when the landlord changes. The only difference will be that the new owner will take over as your landlord and has to honor your lease until it ends.
If you’re on a month-to-month lease, things work a little differently. The new owner can ask you to leave, but they must follow state rules and local law about how much notice to give.
So until your lease expires, the new owner must respect the terms of the existing lease and things will continue to go as they were going.
Right to Receive Notice of Sale
Your landlord can’t just sell the property without you knowing it. You have the right to be notified but the rules can vary state by state so be sure to check with a professional lawyer.
The landlord must provide a reasonable notice to tenants before showing the place to the potential buyers. The landlord should give notice at least 24-48 hours before planning the visit. This way, tenants won’t have to feel like their privacy is being violated.
Right to Privacy
Just because the landlord is selling the property, it doesn’t mean buyers can come inside your unit whenever they want.
They have to ask you first before showing your place to the potential buyer. The landlord also can’t share the personal details of tenants with the new buyer without the permission of tenants.
You also don’t have to clean the home or take your stuff out just because the landlord wants to show the unit, you can keep the place as it is.
Protection Against Unlawful Eviction
The landlord cannot just tell you to evict the space without any proper notice. There are steps that one must follow, so they can’t just tell the tenant to evict the space before their lease ends.
The new landlord also can’t do any changes with the lease terms without the permission of the tenant.
In case the tenant is told to evict and relocate, then depending on the local laws, tenants are entitled to a relocation fee which the landlord must give.
Right to Seek Legal Recourse
A landlord cannot force you to leave before your lease ends unless you violate the lease terms. And the new owner cannot change your lease terms without your consent.
You have the right to take legal actions against the landlord. If you are unsure about your rights as a tenant, it’s best to consult a local attorney or property management professional for advice specific to your state.
They can help you out and also provide guidance about your situation.
How Much Notice Does a Landlord Have to Give When Selling?
In most states, landlords are required to give a 30 day notice and in some places, 60 days, to tenants before showing the property to buyers or telling them to evacuate.
But depending on the lease terms and local laws governing the tenants-landlord relationship, the duration might vary.
Tenants have to check their contract to see if there’s a clause that says “lease termination due to sale” or something like that.
In such cases, even if you have a long term agreement, you will have no choice but to move out. Take this scenario for example, if you still have 6 months left until your lease expires but if your contract says lease termination due to sale, then you have about 30 days to move out.
You can try negotiating the time with the landlord if the lease is terminated because of sale.
What to do if landlord sold house without telling you?
In such a scenario, the first thing you should do is contact your landlord immediately and ask them to clarify this situation. You still have your rights as a tenant, so the new owner must honor them.
You will stay and pay the rent like you were doing until your lease expires or you receive a legal notice. You can discuss if there are any changes in your tenancy or payment with your new landlord. Ask for everything in writing whether it’s changes in your tenancy or a notice.
If they ask you to leave then they must follow legal eviction procedures and do it properly. But if you are on a month to month agreement then the landlord is required to give a proper notice which is usually 30 or 60 days, depending on the local laws and lease terms.
How long do tenants have to move out after house is sold?
After you have confirmed that the house is sold, the amount of time you have to move out depends on your lease terms and local laws. In most states, the landlords are supposed to give a 30 to 60 days notice, so that the tenant can plan and move out with no problems.
If you have a fixed lease that hasn’t expired, you have the right to remain and pay the rent like you were doing, unless there’s a clause that says “termination due to sale”.
If you are on a month to month lease, then the new owner can ask you to leave but they must follow proper legal evacuation procedures like a notice period. In case you don’t have a written lease, you are still entitled to receive a notice before evacuation.
Can inspector, realtor, and buyers come to the property if you are still living?
Yes, professionals like inspectors, realtors, and buyers can come to the property even if you are still living, but they need your permission first to enter your unit.
They can’t just barge in your place because the property is going to be sold, you still have your right to privacy as the tenant.
The landlord must send you a 24 to 48 hours of notice before they bring anyone to inspect or show the place.
Make sure to discuss everything with your landlord, whether it’s the previous one or the new. Clear communication is important, you must discuss things like when they can come, set the reasonable hours, and also inform you beforehand when they are about to visit your place.
If you have a problem then you can refuse the entry or tell the landowner to reschedule the visit. If the landowner doesn’t respect your rights or refuses to follow along then you can reach out to your local authorities.
What happens to my security deposit after the landlord sells the property?
When the landlord sells the property that you are still living in, you have the right to either take back your security deposit or have it transferred to the new owner. To put it simply, only the landowners are responsible for the deposit, and when you move out, the new owner must return it.
So as long as you follow the lease terms, the security deposit will be returned to you without any problem.
In some states, the landowner is supposed to provide tenants a written notice about where your security deposit is going. And if there were any deductions made then the landowner must give you a written explanation of why it was deducted.
If the security deposit is not returned to you or there are some delays, ask both old and new landlords for it, if they refuse to give it back, you can reach out to local tenant rights organizations or consult a legal expert.
Conclusion
To answer your question “Do I have to pay rent if my landlord is selling the house?” Yes, you still have to pay the rent as long as your lease is active. In most cases, the sale doesn’t automatically cancel your lease, the new owner must honor your lease terms.
So the things will go as they were going unless it is stated that the lease will be terminated due to sale in your lease terms. But this can vary depending on your lease type too, if you are on a fixed lease then the things will be the same, the only difference will be you will have a new landlord.
You still have your tenant rights, so if you are told to evacuate, the landlord should provide you with a proper legal notice and follow the legal procedure of evacuation. They also cannot bring potential buyers to view the property without your permission.
By having a good understanding of your rights as a tenant, you can make better decisions and prevent any unnecessary stress.
If you are unsure about your situation, it’s best to consult a local attorney or ask assistance from a local tenant rights organization, they will be able to provide you clarity and legal guidance.
