In this article, we will seek to answer all these questions and worries related to the sale of a tenanted property. We will do this by answering the most important question, how much notice to give a tenant when selling a house in Tennessee? This question is very important as it forms the causes of all the issues emanating from the house’s sale.
Selling a tenanted property can be such a serious issue for the seller (the previous owner) and the property tenants. The seller might be wary of legal issues emanating from the sale of the property. He/She may fear that the tenants may file for a legal redress because of the sale. On the other hand, the tenants may have to deal with the turmoil of getting another house, worried about what the new owner will be like if they decide to remain on the property. Basically, a lot of issues may emanate on both sides from the sale of a tenanted property.
If adequate notice is given, the property seller doesn’t have to worry about any legal issues. Moreover, upon receiving adequate notice, the tenants would have made appropriate plans for the aftermath of the property sale. Therefore, it is evident that adequate notice plays an important role in the sale of a tenanted property.
To start with, you should give a 30-day notice for the property’s sale, according to tenant and housing laws in most states. This implies that you are eligible to a notice of property sale as a tenant, 30 days before the sale of the property. As a landlord, it is in your best interest to follow through on this law to avoid any legal tussle with the tenant. However, there may be variations based on the type of lease and the location. With regard to the lease type and location, these variations will be discussed in detail in the succeeding paragraphs.
Read More: Where to Invest Money from Selling a House
Type of Lease and the Effect on Notice of Sale
Monthly Lease
By a monthly lease, we mean that your contract to occupy the house expires every thirty days, and upon this expiration, you renew the lease. In this case, the landlord is free to sell the house after giving you a 30-day notice. This is a notice given 30 days before the day you are expected to vacate the property. However, there is a variation to this law for rented properties in California. The California law states that a notice of 60 days is given to tenants if they have lived for a year or more on the property.
Fixed Term Lease
A fixed-term lease implies that the lease expires after an agreed term, which could be a year or more. Under this type of arrangement, the tenant is eligible for a 60-day notice before the sale of the property. However, as with other laws, there are locational variations to this law. In some states such as California, the tenant has the right to stay on the property until the end of the lease, even under the new landlord. In the Golden State, the tenant has rights to a relocation allowance if the new landlord wants the tenant to move before the lease ends.
The Californian Tenant laws are similar to that of Illinois, where the tenant is eligible for staying on the property till the end of the original lease. The new landlord cannot request a new lease contract until the expiration of the existing one. Moreover, the tenant must be made aware of a change in ownership with ten days of the purchase. For tenants in Washington, the laws allow them to stay on the property until their fixed-term lease. In addition, the former landlord must provide the new landlord’s contact address for the tenants and transfer the security deposit paid at the beginning of the lease to the account of the new landlord.
Lease effected by Oral Agreement
Of all the leases and tenant agreements, this is the riskiest and difficult to navigate. While oral agreements are legally binding, they are easily misinterpreted and misconstrued as there is no physical evidence to back them up. In this sort of situation, the tenant may be at the landlord’s mercy, who may decide to give any form of notice as he pleases. In that case, it is better to approach an attorney in order to salvage the situation.
Important Facts to Bear in Mind:
- In most cases, especially under a fixed lease agreement, you are eligible to occupy the house until the end of your lease, even under the new landlord
- As a tenant, you have the right to demand a relocation payment or allowance if the new landlord wants you to vacate the property before the expiration of your fixed lease.
- The sale of the property in which you still gave an ongoing lease doesn’t nullify your right to quiet enjoyment. Thus, the new landlord must give a 24-hour notice before bringing new buyers to inspect the house. Moreover, this inspection must be done within reasonable hours. If you feel that the new landlord is not taking cognizance of this law, you can approach an attorney.
- As a tenant, you are liable to continue paying rent to your new landlord as long as he/she is open to the continuous rental of the property. However, if not, you are not obligated to pay rent to either the old or new landlord.
Conclusion
The sale of a rental property brings about numerous legal tussles, a lot of which depends on the amount of notice given to the tenant before or after the property’s sale. While there is a stated term for the notice, variations may occur as a result of the type of lease or location of the property. There is an easy solution is you want to sell your home with tenants. Contact Aniya Equity today to discover your options. Aniya Equity specializes in rental property acquisition and can easily assist you.
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