Legal Q&A:

Legal Q&A: Do leases terminate with the sale of building?

June 20, 2017

Question: I am considering selling a duplex I own. Both sides are rented under one-year leases. A potential buyer said he would need to move into one side of the unit and could not wait for the lease to expire. If there is a sale, doesn’t that terminate any lease I have with the tenants?

Answer: A voluntary sale of leased property does not terminate the rental agreement or lease; the new owner steps into the shoes of the former owner and has the same rights and obligations of the former owner.

Question: If I give a 60-day notice (tenants have lived there for over a year) to tenants, can they move before the 60 days are up? If so, do they have to give 30 days’ notice, or can they just move?

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