TALKING IN REGARDS TO LEASED PROPERTY THAT IS BEING SOLD ON THE REAL ESTATE MARKET WHILE THE TENANTS ARE STILL IN A SIGNED LEASED AGREEMENT WITH THE PREVIOUS OWNER. WHAT HAPPENS WHEN THE NEW PROPERY OWNER TAKES OVER WITH THE EXISTING LEASE OR LEASES?
2007-03-28 06:10:20 · 4 answers · asked by T V 1 in Business & Finance ➔ Renting & Real Estate
The new owner is bound by the old leases as if he signed them himself. He is also responsible for the security deposits.
2007-03-28 06:37:53 · answer #1 · answered by sdmike 5 · 1⤊ 0⤋
The existing leases are assigned to the new owner as part of the sale/purchase transaction. Once the leases mature, the new owner can then make new arrangements with the tenants. But he has to honor the terms of the existing lease until they terminate. He also gets the secuirty deposits under the lease which must also be assigned in the form of cash at time of closing.
2007-03-28 06:28:21 · answer #2 · answered by boston857 5 · 0⤊ 0⤋
Normally the rent is assigned to the brand new proprietor and maintains as written till the expiration date. I'm no longer in Texas, however in my state you are not able to quite simply positioned any person out due to the fact the estate alterations fingers - nor are you able to drive a renegotiation of the rent. The customer buys the apartment AND the rent.
2016-09-05 19:05:43 · answer #3 · answered by albano 4 · 0⤊ 0⤋
Just like the girl above said, a lease is encumberance on the property, just like any other thing.
2007-03-28 06:36:27 · answer #4 · answered by burga kiiong nocca 2 · 0⤊ 0⤋