What happens if we rent a home that is listed as a rental but also for sale and it sells?

Asked by heathereminnich, Exton, PA Tue Aug 7, 2012

There are several homes on this site that look to be right for us. We only want to rent. However, these places are listed as rentals but the details state they are also for sale. Do we get kicked out? I'm not going to pack up an entire household to move 40 miles to a new town only to have to start packing and looking again.

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Richard Czarnik’s answer
Richard Czar…, Agent, Los Angeles, CA
Tue Aug 7, 2012
Sometimes the property owner wants to sell the property, but in case his/her plan does not work out, he/she wants to rent it out. It does not necessary mean that once the property gets rented out, it still will be offered for sale. Those things can be resolved in a written agreement between the owner/landlord and the tenant. In general, the presumption would be that the landlord can do whatever he/she wants to do with the property. Having said that a properly written agreement could probably overwrite that presumption. As long as there was a consideration exchanged for certain condition in an agreement and there are damages mutually agreed upon stated in a contract, both sides should know what to expect in case of any problems. To be on the safe side, I suggest to contact an attorney who practices in a certain jurisdiction. He/she will probably advise as to a proper approach to phrasing that and whether certain agreements are in accordance with the law.
0 votes
Richard Sher…, Agent, West Chester, PA
Tue Aug 7, 2012
Commonly homes are marketed for rent or for sale with the owner's intention being to stop the negative cash flow. Once rented, many will stop the sale listing process and be happy to have a tenant in place. Ask if this is the case, if not the lease is the law and the new owner would have to honor the lease. A very good point was made by another agent in that you should have concerns that the owner is in good standing with their mortgage company and the property is not in any state of pre-foreclosure. I sell bank foreclosures and recently had to negotiate with a tenant to move out and this was the second time they had been in a lease and the house went to sherriff sale.
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Edmund Choi, Agent, Paoli, PA
Tue Aug 7, 2012
Please refer to your lease, specifically the paragraph addressing the sale of property. However, since you don't have one at this time, just ask the question to your potential landlord and/or his/her agent and negotiate. Good Hunting!
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Robert D Hug…, Agent, Devon, PA
Tue Aug 7, 2012
Jim answered correct. Make sure that you are protected that you do not have to move out, as most standard leases indicate a time-frame when the tenant must vacate the property. We average 2-3 rentals per month and are Experts in the field.

Please contact us for a complete list of rentals that fit your criteria.

Rob Hughes: Long & Foster Real Estate Inc.
(Associate Broker) (AB065650)
(Hughes Associates) (Realtor since 1987)

Office: 610-225-7400 x7438

Cell# 484-410-9765 (Preferred)

0 votes
Irina Karan, Agent, Aventura, FL
Tue Aug 7, 2012
Great question!
With all things being equal in those several homes you mentioned,
it's best to pick the one that's not offered for sale.
Better yet, to check if the one selling or any others are in pre-foreclosure.
While there is always a chance that any house you rent might turn into a property offered
for sale, you can and should do your due diligence here and now.
You can easily check the public records for pre-foreclosure/overall deed/real estate taxes
payment status.

Make sure to read your lease carefully, before signing. Better yet, to consult an attorney - most 1st time consults are free. The lease should state your rights in case of sale of property. Normally, you should be able to finish your lease term, unless it's month to month tenancy. That is if it's not a short sale situation (above).

Tenants's right vary from state to state, but you should be able to find out even before
renting what your rights are in your state - from your agent, your attorney or tenants' rights
pamphlets - available through legal clinics/free legal services.

To give you an example, you could be able to establish in the lease how many times you'd be willing to show the property per week and if you'd need 24hr notice for showings. If the buyers don't want to wait until the end of your lease and want the house vacant prior to the closing - a deal could be worked out between sellers/buyers. There could be some compensation for inconvenience money given to tenants (could be a couple of months rent plus movers expenses).

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
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James Bushong, Agent, Coatesville, PA
Tue Aug 7, 2012
The new owner usually has to honor your lease. When the lease is up, you might have to move.
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Andy Chapis, Agent, West Chester, PA
Tue Aug 7, 2012
Check your lease. It will generally stipulate.
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