My Landlord is Selling My Building. What's Next?

Finding the perfect apartment is hard, which is why many renters try to avoid moving often as much as they can. But what if you have no choice? What if your landlord sells your building or apartment — and the new owners do not want you as a tenant?

Knowing your rights as a tenant in this situation can help you avoid confusion and ensure that you have the most seamless experience possible with the new property owners. In this guide, we cover what exactly your rights are when your landlord sells their property, as well as what you can expect to happen during this process.

The short answer, in most cases, is no — at least not right away. If you are in a fixed-term lease (so, not a month-to-month lease), then it is your right to have the original terms of that rental agreement honored even if the property changes hands (unless you state laws allow eviction upon the sale of the property). However, there is no guarantee that they will renew your lease once it is up — or, if they do give you the option to renew, that they’ll honor the terms of your previous lease. They may change policies or offer a new lease with a rent increase, for example.

If you are in a month-to-month agreement, then you may be asked to move out with 30-, 60-, or 90-day notice depending on the terms of your lease agreement and your state’s local laws.

Yes — in most cases. Check the terms of the lease you originally signed for a “termination upon sale of premises” clause; if that exists, then you may be out of luck and be given notice to vacate. You can try to negotiate with your old landlord to try to remove this clause from your written lease, but it does give the old and new property owner an out to not continue a tenancy if they don’t want to.

If your lease doesn’t have such a clause, then it stands even after the property is sold — unless your state laws dictate otherwise.

There is some due diligence that can be done to ensure all promises made by your old landlord are carried out. One option is requesting an estoppel agreement (also known as an estoppel certificate) be created when the sale is occurring. An estoppel agreement is essentially a document that confirms the terms of the current lease — such as the amount of the monthly rent payment and the pet policy — and also outlines any promises made to the tenant by the former landlord. For example, if the former landlord promised to replace the dishwasher but sold the property before getting a chance to do so, then including this promise in the estoppel agreement will help make sure this actually happens. Make sure to read the agreement closely before signing and flag any important information that you think is missing.

While it is the new landlord’s legal responsibility to honor the existing lease in most cases, this agreement will help all parties get on the same page during a confusing time. Note: The estoppel agreement also overrides the original lease, so once it is signed by all parties, it becomes the de-facto document outlining the landlord-tenant responsibilities. 

There are a few paths your new landlords can follow when they purchase the rental home where you are living. 

One is that they simply become your new landlords, honor the terms of your lease (as they are legally obligated to), and then offer to renew your lease with very similar terms. That’s right — it is possible that not much will change. Even as a month-to-month tenant, you may just be asked to simply continue renting using your current lease.

Another option is that they honor your lease, and then ask you to vacate once it expires without offering to renew it. This may be the case if the new owners are interesting in flipping the property and reselling it or putting it back on the market at a higher rent price, or if they are interested in moving in themselves. If this is the case, then they will need to give you proper notice (30, 60, or 90 days depending on where you live) that they will not be renewing your lease.

It is possible that they will want to try to get you to vacate earlier than the end date of your original lease — and there actually are a few legal avenues they can pursue to get this done. For example, they may offer you what’s called “cash for keys.” This is when they offer to buy you out (so, hand you a lump sum of money) in exchange for you agreeing to an early lease termination. You don’t have to accept this offer. Another possibility in some cities like Los Angeles, CA or Portland, OR is that your landlord is allowed to evict you through no fault of your own — but they need to offer you a hefty relocation fee to find new housing.  

Expect to have some foot traffic in your apartment.

In some states and cities, your landlord is required to tell you that they have an intention to sell and are putting your home on the market. (For example, in California, you must receive written notice 120 days before any showings for potential buyers can happen.) In others, you may not hear about it until there is some interest in the property. The current owner will need to tell you in a reasonable amount of time if they are going to be showing the apartment, as you’ll have realtors as well as prospective buyers start touring the space. While it’s not your responsibility to clean up or prepare for these showings in any way, some landlords choose to offer their tenants perks in exchange for cooperating happily with showings. This could be anything from a gift card to offering to get your place professionally cleaned. Typically, you’ll need to get at least 24 hours advance notice before showings.

Once the property sale goes through, you will be connected with your new landlord. At this point, you’ll go over lease terms, sign the estoppel agreement, and continue your tenancy or your new landlord will present a cash for keys offer. Your new landlord will have all the same responsibilities as your old landlord, such as maintaining a habitable state in the property and returning your security deposit at the end of your tenancy. You will need to pay rent to them through the end of the lease.

Even though you don’t own your home, you still have rights when it comes to your apartment even as it is being sold. Below, we outline some common tenant protections that you should be aware of while your landlord tries to sell your unit or building: 

There are some additional rights that you may have if you live in a city with robust landlord-tenant laws. For example, if you are in New York City and have rent control, then your new landlord may need to honor your building’s rent control policies. Or, if you’re in Connecticut, your landlord will need to offer you a chance to purchase the property before they put it on the market for everyone else. Read up on local laws for your city and state to learn more about your options.

It can be scary when your landlord tells you that they are selling their unit or building. It means that uncertainty — and the need to find new housing — is likely in your future. However, as a tenant with a lease, you do have rights, even when the property is being sold to someone else. Staying informed on these tenant rights is the first step in regaining stability and peace of mind during the sale process. If you feel that your rights have been neglected upon the sale of your rental unit, consider getting professional legal advice on how to proceed.