First and foremost, the lease must be honored. If the property is sold with nine months remaining on a one-year lease, the tenant has the right to occupy the unit for the remaining nine months. He or she is still responsible for paying rent and carrying out the terms of the original lease, although rents will generally be paid to the new owner. The other terms and conditions of the lease also stay in effect until the lease expires. After the lease expires, the tenant can be required to move so that the new owner can occupy the unit or otherwise determine how to use the property. The sale of the property also does not change the tenant’s right to a refund of his or her security deposit.
For month to month leases, the renter will have fewer rights than with a longer lease. The new owner can decide to terminate the lease. However, proper notice must be given, usually 30 days. Landlords are prohibited from using self-help remedies to get rid of tenants, such as cutting off the utilities or changing the locks.
Additionally, renters are entitled to “reasonable notice” before an agent shows the property. This is stipulated through California’s “right of possession” which states that a landlord cannot enter the property without the renter’s permission. California law presumes that 24 hours is reasonable notice. Therefore, if the owner or a realtor wants to show the property, the owner must give the tenant at least 24 hours’ notice of the intent to show. The notice must be reasonably calculated by the owner to reach the renter. However, the notice does not have to be written so long as the owner has provided the renter with notice sometime in the last four months that he or she intends to sell the property.
Additionally, the renter is entitled to be subject to viewings at reasonable times. For example, a midnight showing would likely not be considered reasonable. Determining whether a proposed showing time is reasonable depends on the particular circumstances involved in the case. The renter may request that the owner inform realtors that the property should not be shown during certain hours.
California law also requires that the renter be informed that the property was shown by receiving written notice to this effect.
If the owner loses a house to foreclosure, the tenant must be provided with 60 days’ written notice to vacate before the lender can take steps to remove the tenant, according to California law If the lease was signed before the deed or mortgage was recorded, the original lease must be honored. Under federal law, the tenant is entitled to 90 days’ written notice to vacate. Additionally, the buyer of a foreclosed home must honor the lease until it expires unless the buyer will be moving into the residence and using it as his or her home. If this is the situation, the tenant is entitled to 90 days’ written notice to vacate. The same applies to periodic tenants.
Although the tenant has certain rights, he or she may choose to voluntarily waive these rights by independent agreement. Renters who are inconvenienced by continuous showings may prefer to walk away from the property rather than have to keep it immaculate at all times. A landlord may agree to provide the renter with a reduced rental amount to compensate him or her for cooperating during this process. In some transactions, tenants may occupy units such as apartments, condos or other multi-level buildings that the new owner wants to demolish or renovate. In these situations, the new owner may have an incentive to buy out the lease and offer the tenant funds to vacate early. A tenant and landlord may enter into such agreements if they both choose to do so.
Individuals who believe that their landlords are not complying with applicable state or federal laws may wish to discuss their case with a real estate lawyer who can advise them of their rights and explain their options.
