To clarify, until the lessor is "not " the legal owner of the property, it's my opinion you need to pay the rent as agreed, what you may know about the lessor is not worth any weight in a court room. Until you are notified of new legal owners, you can put your credit in jeopardy if you don't pay as agreed.
My brother and I started investing in apartments buildings over 20 years ago. We currently own 14 apartment buildings and 1 shopping center by trading up by way of 1031 exchanges. I have never seen a situation where a judge favors breaking leases due to owners loosing the property.
There's no way I'm going to even try to answer here because its complicated and yes you face potential liability depending on your course of conduct. But that potential MAY be very low and MIGHT outweigh the benefit to be obtained by accepting that risk and acting accordingly.
I suggest you make an appointment with the King County Bar Association Neighborhood Legal Clinic (google it) which will get you 30 minutes for free with a licensed attorney. Alternatively, you can give me a call and if you're willing to pay me for my time -- its all I have to sell in order to make a living -- then I can explain your options. In any event, good luck!
Hope this helps!
Regardless of what is happening with ownership, as a renter, you have an obligation and responsibility to maintain your rent until you are notified otherwise. To assume you no longer have this responsibility may only serve to open you to future litigation.
It sounds like you are aware of a trustee sale "date", which may or may not be changed to a later date.
Speak with your landlord & try to negotiate a win/win and asked if when the sale date is slated for the property. It's costly to move and you want to know where you stand. There are rules for landlord tenants on this link. I hope your landlord is open and honest with you.
In addition; the condo may not sell, then the condo will go back to the bank. You will be notified after the sale on moving. Again, you are a renter and there are different rules for the renter time-line to stay in the condo--do you have a lease or a month to month?
Linda Connors/Coldwell Banker Danforth
I'm not an attorney and maybe you should consult with one but I believe that you have 90 days to vacate the premises from the time the trustee sale happens. I'm not sure if you are paying rent in those 90 days or not. Again, not an attorney. As for your security deposit, technically the owner should transfer that money to the new owners and the new owners should inform you where it's being held. Did you have a move in inspection? If not, you are due a full return no matter what. Hope that helps!
You have rights as a tenant, but obligations too. I've attached a link that deals with a newer law that may be useful. It's also important to know that auction dates get postponed and rescheduled often, for various reasons. While this is no guarantee it won't happen, your plans could meet with complications if you don't live up to your lease and he still owns the home.
Discuss your situation with the landlord; ask him if he's considered a short sale or other options which may be available to him both for your benefit and his.
If you or someone you know would like help with Real Estate, please give me a call.
Columbia Real Estate Group