Do I have to pay rent if my landlord is selling the house?

Finding out that your landlord is selling the home you’ve been renting can feel unsettling. While a new owner will certainly bring changes, it doesn’t automatically mean you’ll have to find a new place to live.

Your landlord has every right to sell the property, but renters also have rights during and after a home sale. Keep reading to learn what to expect after your landlord sells the house you’re living in. 

What happens to my lease if my landlord sells the property?

If your landlord is selling the home you’re renting, your lease will transfer to the new property owner once the sale is complete. The new owner takes over responsibility for the property, including repairs and general upkeep. 

Since the new owner is required to honor the existing terms of the lease, there shouldn’t be any immediate changes to your lease. If you have six months left on your current lease, for example, your new landlord will have to wait until the lease is up before changing your arrangement. If you’re on a month-to-month lease, most states require your landlord to give you at least 30 days’ notice before expecting you to move out or altering the terms. 

If you’re on a fixed-term lease and the lease ends, your landlord can raise your rent or end your lease altogether if they provide sufficient notice. State and local laws determine how much notice your landlord must give you. The U.S. Department of Housing and Urban Development has a list of housing resources by state on its website, including housing counseling, information about tenant rights and assistance programs.

Do I need to keep paying rent during the sale process?

You’ll need to continue paying rent during the sale process, especially if you want to keep living in the home. If you stop paying rent, you’ll have violated the terms of your lease and your landlord can evict you.

Your landlord may also take you to small claims court and sue you for the unpaid rent. Any resulting judgments will appear on your credit report and can damage your credit score. You also need to consider your reputation as a tenant — other landlords can legally refuse to rent to you if you have a history of failing to make payments. 

While the sale is underway, you’ll continue paying rent to your current landlord. Once the sale is finalized, the new owner is responsible for informing you of the new rent payment process. 

What are my rights as a tenant when my landlord sells the house?

Your landlord has a right to sell the house whenever they want, but you also have rights as a tenant during the sale:

• Original lease terms: Most importantly, you have a right to keep your original lease terms with the new owner. For example, if your original landlord allowed you to have a pet, the new owner must accommodate this until the lease expires.
• Security deposit: You also have a right to receive your security deposit once you move out. The new owner is responsible for managing your security deposit and letting you know how to collect it after you move out. 
• Notice to move out: If your lease includes a “lease termination due to sale” clause, your landlord can end your lease early if the property sells. But you must be given a certain amount of notice before you’re required to move out, usually 30, 60 or 90 days. 
• Legal action: If you feel that you’ve been treated unfairly by your landlord, you have the right to file suit in small claims court. 

Can the new owner change my lease agreement?

The new property owner can’t change the terms of your existing lease, but they can change the terms once your lease renews. There are two different types of lease agreements: fixed-term and month-to-month:

• Fixed-term lease: If you have a fixed-term lease, the new owner must honor your agreement until the term expires. 
• Month-to-month: If you have a month-to-month lease, your landlord can change the terms of your lease agreement but must give you notice first. Most states require at least 30 days’ notice, but some states may require more. 

Can I be evicted if my landlord sells the house?

Your landlord can evict you if you violate the terms of your lease agreement. For instance, your landlord has the right to evict you if you stop paying your rent altogether or intentionally damage property. 

If you’re on a fixed-term lease, your landlord may try to buy you out or offer you a relocation fee in exchange for ending your lease early. You don’t have to accept your landlord’s offer, and you may be able to negotiate for a better deal. 

The rules may be slightly different if the home is sold due to foreclosure, but even in that situation, you still have rights. Renters are protected under federal law and can remain in the property for at least 90 days after the eviction notice. Some states may even require a longer notice period than 90 days.

Do I have to pay rent if my landlord is selling the house FAQ

What should I do if my landlord tells me they’re selling the house?

If your landlord notifies you they’re selling the property, you should review your lease agreement. Check when your current lease expires and any clauses that may be relevant to the sale. You should also check the state and local laws so you’ll know what your rights are. 

It’s also a good idea to document any communication between you and the landlord going forward. That way, if you think your rights have been violated, you’ll have evidence to back up your claims. You can also reach out to a local tenants organization or lawyer for legal advice.

How long do I have to move out after the sale?

If your lease agreement includes a “lease termination due to sale” clause, your landlord can end your lease early with the sale of the property. The amount of time you have to move depends on the terms outlined in your lease. The clause should specify how much notice your landlord is required to give you and the conditions for the termination.

Can I break my lease if my landlord sells the house?

There are scenarios where tenants can break their lease without facing any legal responsibilities. However, this usually only applies if you’re a victim of domestic abuse, are a military member who’s been deployed, or your lease contains an illegal clause.

If your landlord violates the terms of your lease during the property sale, you may have a right to break your lease. It’s best to consult the terms of your lease and talk to your landlord before taking action.

What happens to my security deposit if the property is sold?

Your security deposit doesn’t go away just because your landlord sold the property. After the sale, the security deposit will usually transfer to the new property owner, who will keep it until your lease is up. After you move out, the new owner is responsible for returning your security deposit to you.