Question: If I signed a one year lease with a landlord and now a new landlord buys the property, does the new landlord have to honor that lease? Or can he tell me to leave? Does he pay my security deposit or does the old landlord pay my security deposit?
Answer: Yes, your lease contract is an encumbrance on the real property. That means that when then new buyer bought the property, he bought it subject to the existing contract between you and the old owner. Therefore, the new owner has to honor the original agreement. However, he does have the right to terminate the agreement under the terms of the agreement (such as at the end of the term). Some leases even give the new buyer the new buyer the right to terminate your lease upon sale. If your agreement states what you need to do to have the deposit returned, the new owner is obliged to provide you with the security deposit.
June 24, 2009
Legal Services Corporation