Your lease survives the sale
One of the biggest concerns for tenants is learning that their landlord wants to sell the property. The good news is that, in most states, your lease does not automatically cancel when the property changes ownership. The new owner inherits your lease and must respect its terms.
General rule: the lease transfers
| Lease type | What happens when sold? |
|-----------|----------------------|
| Fixed-term lease | New owner must honor the lease until it expires |
| Month-to-month | New owner can terminate with legally required notice |
| No written lease | Considered month-to-month; same rules apply |
Your rights during the sale process
Before the sale:
During buyer visits:
Can the new owner evict you?
| Situation | Can they evict you? |
|-----------|-------------------|
| You have a current fixed-term lease | No, until the lease expires |
| Your lease is month-to-month | Yes, with legally required prior notice (30-90 days by state) |
| New owner wants to move in themselves | Possible when lease ends, with notice |
| Foreclosure sale | Special protections under federal law |
Special protections in foreclosure
If the property is sold through foreclosure, the federal Protecting Tenants at Foreclosure Act protects you:
What happens to your security deposit
This is a critical point. When the property is sold:
Important tip: When you learn of the sale, send a letter to the original landlord and the new owner confirming your deposit amount. Keep a copy.
How to protect yourself step by step
1. Review your lease
2. Document everything
3. Communicate in writing
4. Verify the new owner
Rights by state
| State | Specific rights |
|-------|----------------|
| California | Tenants have priority in some multifamily building sales |
| New York (NYC) | Rent stabilization carries over to new owner |
| Washington, DC | Tenants have right of first offer to purchase |
| San Francisco | Additional protections against displacement |
| Illinois | Deposit must be transferred to new owner by law |
Can you negotiate with the new owner?
Yes. Some options:
Never accept a verbal offer. Every agreement should be in writing and signed.
Warning signs
Resources
Remember: a change of ownership does not mean you lose your home. The law protects you, and knowing your rights is the best defense.
