Home Selling in 75228>Question Details

Eric L., Home Buyer in Dallas, TX

Does this void our lease?

Asked by Eric L., Dallas, TX Mon Jun 30, 2008

We are renting a duplex that is about to be sold. Our lease is unclear as to what happens at this point. Can the Seller, basically sell us with the property? Does our lease become void by default? We are wanting to buy a home for ourselves and hope to break the lease.

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Carol Pease, Broker’s answer
Actually I agree with T.E. I would make sure you reminded the current owner about your deposit. You could be in a real mess if your deposit didn't transfer at closing. The lease runs with the property and thus the new owner would be bound by the terms.

Carol Pease
Web Reference: http://www.CarolPease.com
2 votes Thank Flag Link Sat Jul 5, 2008
BEST ANSWER
Matt gave the best answer so far.
The lease runs with the property and is enforceable by both sides (you and the new owner). Normally, your security deposit is transferred as a credit to the buyer from the seller, because the new owner will now owe it to you under the original terms of the lease. You might, as a courtesy, remind the seller of this, but you have no say in their negotiations. Rarely, there are provisions for terminating the lease on sale -- you'd have to inspect the terms of your lease.
As to re-negotiating a lease, this is always available to you, regardless of change in ownership or not, but it does not automatically give either you or the owner a leg up on the other party. Discussing the matter with the new owner is highly advisable.
Foreclosures or other involuntary conveyances operate a little differently.
Web Reference: http://www.SumnerRealty.com
2 votes Thank Flag Link Tue Jul 1, 2008
The lease will transfer to the new owner along with any deposited money or held rent. Your lease does not change unless the new owner offers to let you out. The seller can sell you the property and then the lease would be held on both sides by you, therefore making the lease unenforceable.
2 votes Thank Flag Link Tue Jul 1, 2008
The lease should remain in effect. One thing you might want to check on is your deposit. Who has it and how you will get it back at the end of the lease. No one ever thinks about this and I it is often the tenant who gets the run around on this. If you want out of the lease talk to both the current seller and the new owner and see if you can work out something that works for everyone.
Web Reference: http://www.teamlynn.com
1 vote Thank Flag Link Tue Jul 1, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
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The answer, as in much of real estate, is "it depends"...The new owner might be willing to let you out of your lease so that he/she can increase the rent for the next tenant...you never know until you ask. In most cases, there is not any "automatic" anything. You can always consult a real estate attorney as well, titile companies have one on staff, I can recommend one.

I work 75228, love the area, would love to help you find your new home!

Best regards, Monica Grosz, 214-762-1515, monicagrosz@kw.com
1 vote Thank Flag Link Mon Jun 30, 2008
Terri is corect you and the property are being sold, it depends on the new property owner if they purchased as an investment or intent to move in you might be able to work a deal. If not ride out the lease, look for a Dallas home for sale. We offer a buyers rebate program earn up to 50% of our commissions there are some great Dallas foreclosurs on the market with equity. contact my office if we can assist 972-699-9111 or http://www.lynn911.com
1 vote Thank Flag Link Mon Jun 30, 2008
Hi Eric,

Sorry Charlie, your property is being sold with the lease outstanding which means the new owner can not take occupancy until the lease has run its' course. HOWEVER, once the new owner takes possession of the property, you may renegotiate your lease with them. You have other options available to you. We'd need to know:

Terms of lease
Amount of lease

My husband and partner, Robert, is a commercial Realtor and investment property specialist (your property falls under that umbrella.) Feel free to give him a call at 214.205.8372 and he can help you further.

Thanks,
Terri Hayley
1 vote Thank Flag Link Mon Jun 30, 2008
Your lease does transfer with the property but you might want to talk to the new owners and see what their plans are. They might be willing to let you out of the lease if they eventually want to move in or make renovations. Ask the listing agent if they could contact them for you.
0 votes Thank Flag Link Thu Oct 17, 2013
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