Home Buying in Walnut Creek>Question Details

mamadg, Home Buyer in Walnut Creek, CA

Can a homeowner sell their house during the middle of a lease agreement?

Asked by mamadg, Walnut Creek, CA Thu Jan 1, 2009

We are renting in Walnut Creek Ca, and we are in the middle of a 2 year lease. Can a homeowner break the signed 2 year lease and decide to sell in this declining market? We are wondering what our rights are as the renter and would like to know if we are protected in anyway. We have reviewed the rental agreement and there doesnt seem to be and addendum or stipulation that allows the owner to break the lease early. Just curious from a legality standpoint if he could break the lease prematurely. Thanks for the help.

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You're lease is a legal contract that cannot be broken by the sale of the property. The new buyer would have to buy the house subject to the existing lease. The only cases where there could be issues is if the house is in foreclosure or if the seller is in bankruptcy.
0 votes Thank Flag Link Sun Jan 4, 2009
Hi, thanks for your answers so far. I know this property isnt facing foreclosure... and he would want to sell it to a private party. It is an expensive home, $1mm + so i dont think it would be a rental to the next owner. We just want to know if he has the power to have us move out premature of the lease ending, so he can sell and cash out. Thanks.
0 votes Thank Flag Link Thu Jan 1, 2009
Hello Mamadg,

As a tenant, you have the right to occupy the property. Homes are generally sold "subject to" the lease, meaning that your lease continues. You mention the declining market. If the home is probably headed to foreclosure, the bank will not have to honor the full term of your lease. I would suggest you have a frank talk with your landlord and ask them if it will be a short sale or potential foreclosure, then contact an attorney for advice.

Please call me at (925) 407-7987 with any real estate questions. Given the opportunity, I will work very hard to help you meet your real estate objectives.

Kindest Regards,
Vickie Nagy
Realtor® - ABR, CRS, e-PRO, GRI, SRES
Specializing in "GETTING YOU WHERE YOU NEED TO BE"
(925) 407-7987 cell
http://www.VickieSellsHomes.com
http://www.BestTriValleyHomes.com
Empire Realty Associates, 380 Diablo Rd, Danville, CA 94526
0 votes Thank Flag Link Thu Jan 1, 2009
Usually, the lease is honored by the new owner. If an investor buys the property, they will most likely be happy to have a renter in place as this saves them time and money finding one. If someone wants to buy the property to live in themselves, the seller may ask to negotiate an early release on the lease you have. You would have to agree to this and would be in a position to negotiate for compensation for your trouble.
Web Reference: http://www.mariatmorton.com
0 votes Thank Flag Link Thu Jan 1, 2009
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