Came here searching, “can landlord sell house during lease in Texas?” To answer that quickly, yes, they can. However, unless the lease indicates otherwise, you are allowed to stay in the property until that lease ends. But that’s only scratching the surface, which is why we’ve made a comprehensive overview of what happens, as well as your rights and responsibilities throughout the process. Continue reading to learn more.
Key Takeaways
- Your landlord has the legal right to sell their property even if a tenant is mid-lease.
- Unless your lease indicates otherwise, the new owner must honor the existing lease until it ends.
- Tenants are entitled to “quiet enjoyment,” proper notice for showings, and protection of security deposits during the transition to new ownership.
Can Your Landlord Sell the House During Your Lease?
As property services management, we can set the record straight on the big question, “can your landlord sell the house during your lease in Texas?” Yes, your landlord can sell the house even when you’re in the middle of your lease. However, there are ground rules to make this fair and legal for both parties.
First things first, you need to understand that even if you’re renting your landlord’s house, they are still the legal owner of the property. So, if they find a buyer and decide they want to sell it, they can, even if you’re still living in the property.
What Happens to Your Lease if the Property Is Sold?
Let’s say that you’re in the middle of your full-term lease when the landlord decides to sell the property. What happens to your lease now depends on your lease terms:
This applies unless your landlord has included a clause in your lease agreement that allows for the termination of the contract under such circumstances. If that’s the case, your landlord is only required to give you a notice for the early termination to give you enough time to settle your affairs.
If the Landlord Sells the Property During a Month-to-Month Lease
If you’re renting on a month-to-month contract, either party (tenant, landlord, or the new owner) can terminate the lease, as long as they provide written notice, which is typically 30 days. Depending on how you look at it, this is one of the pros (or cons) of having flexible lease terms.
Rights and Responsibilities During the Sale Process
So, we’ve established that even if your landlord sells their property while you’re renting it, they can’t force you to move out immediately (unless stated in your lease). Now, let’s discuss your rights and responsibilities throughout the sale process.
Rights When the Landlord Sells the Property
Again, with the “lease runs with the land” principle, you have the right to continue your lease–even after the sale–unless the lease says otherwise.
Also, even though the property is up for sale, you are entitled to the “quiet enjoyment” of your home. In other words, your landlord can’t access your property without giving you proper notice first. While Texas state law doesn’t have formal notice requirements, many courts have upheld the “quiet enjoyment” right, so many landlords are required to give a “reasonable” notice period. In common practice, this “reasonable” period is typically 24 hours long.
Another key consideration is your security deposit. According to Texas regulations, when the sale goes through, your landlord must transfer your deposit to the new owner. Then, the new owner becomes responsible for its return. They must return your deposit within 30 days of you moving out. When they do, they should include an itemized list of all the deductions for repairs and maintenance (if there were any).
Responsibilities with a Sale
In Texas, a tenant generally still has the same responsibilities as before when a landlord sells the property. Like before, the tenant has to continue to fulfill the terms of their existing lease agreement. For example, you still need to pay the rent on time, keep the property in good condition, and such.
That said, there are some additional things you should remember when your landlord sells their property. When the landlord shows the property to prospective buyers, you are expected to cooperate with their (reasonable) requests to access it, as long as they give you proper notice and do their showings at, again, reasonable times.
Also, when the property owner changes and they become your new landlord, you need to send future payments to their representative of choice. They should be sure to also give the new owner their forwarding address, so that the new owner can return the security deposit. Many renters forget that point–don’t make that mistake.
When You Might Need Legal Advice
If you feel that you’ve put in a tight spot, it could be a good idea to reach for legal advice from a qualified attorney in your area. But how do you know when it’s time to contact a lawyer for help? Let’s briefly go over some common times it might be your best option:
- Your landlord forces you to move out (changed locks, took your belongings out, etc.)
- They continue to come and access your property for showings without proper notice.
- Your landlord refuses to honor the lease termination terms indicated in your contract.
- The new owner fails to return your security deposit in accordance with applicable laws and regulations.
- Your landlord uses intimidation, discrimination, or other similar strategies to drive you out of the property.
All of the above scenarios are illegal. If you find yourself facing them, that’s a huge sign you likely should get qualified legal advice on how to move forward.
Find Your Next Home with Bay Property Management
Can your landlord sell the house during your lease? Yes, but don’t fret! Although it might feel like a wild, scary situation, there are legal principles and laws in place that protect you. Simply, your landlord and the new owner can’t force or intimidate you into leaving or terminating your lease early. They can only ask you to move out with proper notice if your contract has a clause on early termination.
If your landlord sells the house you’re renting and you’re in search of a new one in Austin and nearby areas, Bay Property Management Group can help you find your next home. As one of the top home rental companies in Austin, we have a broad portfolio of houses for rent for you to choose from. Come visit our website to see our latest property listings!