10 Tenant Rights You Should Know When a House is for Sale

Tenants can get frustrated and become stressed when they find out that their landlord is selling the property in which they live. Some common questions tenants may include: do I have to pay rent if my landlord is selling the house; do I have to leave my apartment during a showing; what are my rights as a tenant when a house is for sale?

To begin with, keep calm. Just because the property you’re living in is listed for sale. It does not mean you become homeless and have no protection as a tenant. There are renters’ rights when a house is for sale that is designed to help protect you.

Do I have to Leave my Apartment During a Showing?

One of the most confusing things for tenants is knowing whether they have to leave the property during home showings. By law, there is nothing that says the tenant has to leave the apartment.

The tenant is also not obligated to keep the place clean in anticipation of showings. Although it would be considerate to do so; your cooperation in this way can help maintain a healthy tenant-landlord relationship, which is necessary since you might need to ask them for a reference at your new apartment.

Do I have to Pay Rent if my Landlord is Selling the House?

Even though the landlord is selling the house, you are obliged to pay the rent as long as you stay on the property. After the sale, if the new landlord allows you to remain on the property as a tenant, you’ll continue paying rent, but to the new owner.

Here are a Renter’s Rights when a House is for Sale:

1- Right to Advance Notice Before Showing

Landlords need to give tenants at least a 24 – 48 hour notice before entering their apartment. If there is not enough time to serve this notice. The law suggests the landlord must, in turn, prove a “reasonable notice,” which can be a mutually agreeable time for the landlord and tenant.

This rule also applies when a landlord or professional wants to enter the tenant’s living space for other reasons. Such as conducting a home appraisal or home inspection or complete scheduled repair work. Or, a landlord should visit the house at a reasonable time, preferably when the tenant is awake.

2- Notice to Vacate the Property

Getting a notice to vacate the property is one of the primary tenant rights when a house is for sale. If a tenant has a month-to-month lease, the lease may expire at the end of the month, but a landlord should still give prior notice.

In most states, the law requires between 30 – 60 days’ notice for a tenant to vacate the property. Check out your local laws for additional guidance. If the property owner has violated the law by giving inadequate notice, you can pursue legal action.

3- Negotiation of a Relocation Fee

Another renter’s right when a house is for sale is the right to receive a relocation fee from the landlord. In some circumstances, a landlord may be required to pay such a fee for the tenant’s relocation. For example, low-income tenants in Seattle, Washington are eligible for relocation assistance per the city’s relocation ordinance.  If eligible, the landlord must pay some or all of the relocation fee.

4- Lease Termination Payout

This is also known as “cash for keys.” Tenants can stay on the property until their lease expires. Of course, tenants are subject to consequences if they break the lease, and similarly, landlords cannot violate the lease agreement either. This is where the cash for keys concept comes in. Landlords can offer tenants a payout on the remaining time on their lease if they want them to vacate the property sooner.

Especially if the lease doesn’t include an early termination clause. Offering the tenant money to move out early might be the easiest way to get a tenant to leave the property amicably.

5- Right to Break the Lease If Neglected by the Landlord

Tenants are bound to pay the rent as long as they stay at the property. But if landlords ignore the tenant’s legitimate issues or neglect their duties, tenants may opt to break the lease. If tenants feel their rights have been neglected in the wake of selling a property. They can walk away from the lease without any consequences.

6- Tenant’s Right to the Original Lease Terms

When a property is sold, the tenant still has a right to live on the property under the lease terms. The tenant is still entitled to all waivers and complimentary amenities extended to them by the previous landlord until the end of his or her lease term.

7- Occupancy After Sale

If the “cash for keys” solution does not work out and the tenant wants to stay until the lease term expires, they can legally do so.  Remember that the renter’s rights when a house is for sale supersede property rights in most jurisdictions. The new owner has to honor the original lease and wait for a lease to end.

8- Right to the Security Deposit

A tenant’s security deposit, which is often paid when they sign the lease, is refundable when the tenant vacates the property. The landlord has to return the funds to the tenant on the day before the lease ends. So, the landlord still owes the tenant this amount even if there is a change in property ownership. The landlord must inform the tenant of the property’s new owner and how they can collect their security deposit after the lease ends.

9- Right to Pursue Case in Small Claims Court

A landlord may feel overwhelmed by the sale process and tenants are likely to take the stress of moving out which can make things fall apart between tenant and landlord. Tenants may end up discouraging potential buyers and landlords don’t appreciate it. So they retaliate with rising rent or decreasing services like security or laundry. If you see such circumstances, you have the right to pursue a case in court and sue the landlord for the return of the security deposit.

10- Right to Prior Permission Before Photography

To advertise a property, landlords require pictures of the property. The landlord may get the photographs from outside. If the landlord wants interior pictures of the house, the landlord needs to request permission from the tenant ahead of time. Tenants should always allow the landlord to take the pictures.

Final Thoughts

Housing issues can be stressful, but knowing tenants’ rights when the property is sold is beneficial so you can have a plan should you find yourself in that situation. If you’ve recently learned that your landlord wants to sell the property, or has recently completed a sale, rest assured knowing there are laws in place to protect you.

Related Article:

Rights and Responsibilities of NYC Tenants
Do You Know Tenant’s Rights After an Apartment Fire?
7 Tenant Rights That You Must Know
Can You Sell a Rental Property with Tenants on a Lease?