When your landlord sells your rental home, it can throw your life into upheaval. The situation can be surprisingly complex, even for tenants. However, by approaching the situation properly, you can navigate everything successfully. If you aren’t sure where to begin, here are six steps to do when your landlord sells your rental home.
1. Don’t Agree to Anything Immediately
In some cases, your current or incoming landlord may approach you near the final sale date to discuss your lease or tenancy. This could include making special requests of you, asking if you’re willing to vacate the property, and other points of discussion.
At times, you may feel pressured to make a decision right away. However, that isn’t usually in your best interest.
If either party asks you to formally agree to any change or honor a request, don’t agree immediately. Instead, ask them to provide a copy of their full proposal in writing.
By doing that, you give yourself a moment to consider the request. Additionally, you can compare it to the clauses in your current lease, as well as local landlord-tenant laws.
Often, there are clauses or laws that outline what can or cannot happen after a sale. However, if you formally agree to a proposal without exploring them, you may put yourself in a disadvantaged position that you could have otherwise avoided if you had waited and conducted some research.
Take a moment to evaluate the proposal without formally agreeing to or signing anything. That way, you can determine your options and rights, ensuring you can take a path that meets your needs and aligns with local requirements.
2. Review Your Lease
Once you know that your landlord has sold – or intends to sell – your rental home, review your lease carefully. First, determine when your lease is scheduled to expire or its current status. In some cases, leases transition to a month-to-month arrangement once a specific date passes. If your lease could include an automatic status change, you want to determine which status is currently in effect.
After that, look for any clauses that specifically outline what occurs if the property ends up with a new owner. If you find a related clause, give it a thorough review. That way, you can understand what will likely come next as the sale progresses or the new owner takes possession of the property.
In most cases, if you don’t find a section that discusses what occurs if your rental home is sold, your lease is still in effect. However, that doesn’t mean you should dig a little deeper.
If there isn’t a specific clause that outlines what occurs after a sale, keep reviewing the lease for any clauses that discuss lease terminations. While many won’t apply to the situation, some might, so it’s best to take a close look to see what options may be available to you or the landlord.
3. Check Local Landlord-Tenant Laws
Landlord-tenant laws vary depending on where you live. As a result, it’s wise to see what is and isn’t permitted if the property you are renting is sold to another person or business.
Typically, both the outgoing and incoming landlords are bound by legislation. It isn’t uncommon for there to be clear rules regarding tenant rights when the property they are residing in sells. By seeing what’s required, you can understand what is or isn’t permitted.
4. Speak with the Real Estate Agent
There are some cases where the real estate agent overseeing the sale understands certain details better than your landlord. If possible, speak with the real estate agent regarding the sale. See if you can find out how current leases are being addressed or transitioned. That way, you can potentially get some extra details that may make it easier to fully understand the nature of the situation.
5. Plan Your Next Steps
After you’ve completed the steps above, you can start planning your next steps. What they’ll need to be can vary depending on what is listed in your lease and local landlord-tenant law.
If you need to move out, make sure the required timeline aligns with the lease and landlord-tenant laws. Once that’s confirmed, you can start exploring options to ensure that you can vacate the property by the deadline.
If moving out isn’t required and you’d like to stay, speak with your new landlord. In some cases, you’ll simply want to go over your current lease with them, suggesting it’s still in effect. If you’re in a month-to-month arrangement, then you may either need to review the existing agreement or create a new one.
Which path is necessary could depend on local landlord-tenant law, as that may determine whether a new formal agreement is required. In some cases, personal preference – either yours or the landlord’s – may play a role, suggesting that area regulations don’t make one approach mandatory.
6. Seek Out Legal Counsel
In some cases, you may want to seek out legal counsel to help you navigate the complexities of the situation. Landlord-tenant law can be complicated, for one. For another, if the old or new landlord is acting in an inappropriate or illegal manner, having a legal representative by your side could make a big difference.
If you aren’t sure where to turn, you may want to reach out to a local legal aid office. In some cases, contacting your local housing authority or attorney’s general office may also be a good idea, as they may have mechanisms for addressing disputes.
If you prefer, you can also hire your own attorney. This approach can be expensive, so it may not be plausible for everyone. However, it’s an option you have. Just keep in mind that if you decide to go this route, it’s best to look for a lawyer that specializes in landlord-tenant law, real estate law, or a similar area. That way, you’re more likely to find an attorney with expertise that relates directly to your situation.
Can you think of any other steps that a person needs to take if their landlord sells their rental home? Share your thoughts in the comments below.
Read More:
- Use These Steps to Save Money on Moving Expenses
- How to Prepare to Rent an Apartment
- 10 Ways to Negotiate for a Rent Decrease
If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started. Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.
Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.
Comments