possible new owner

[bender85]

What is the name of your state (only U.S. law)? Illinois

have a relative who is on a lease of part of a house from a friend of his who he helped to rebuild this place. The place is up for sale and if it's sold he wants to move preferably before it changes hands. If the house is sold is he bound to the old lease from the old owner or does the new owner have to have a new lease signed? I know most states have different laws on leases. He had the house up for sale but didn't tell him until after getting a new lease signed. Many times they worked out some of the rent with sweat equity.

Thanks

 

[FarmerJ]

Does the lease say that it can be terminated with the sale /transfer of the property OR does it only state that it is transferable , Carefully review it.

 

[bender85]

He said it states neither. Only that the owner has a right to sell the house but nothing about transferring or terminating a lease.

 

[FarmerJ]

right to sell= transfer ! Which means the lease is transferable to another party. If this lease is long term ( NOT month to month ) IF a prospective buyer wants to owner occupy they will either insist ( make offer contingent on vacancy ) the seller negotiate a termination of the lease If the seller takes no steps to negotiate a early termination then a new owner will have a tenant like it or not! BTW a new owner like it or not also inherits any damage deposit fund obligations paid by tenants.

 

[bender85]

Ok. I found more info. In the city where this is they requre that all rentals are licensed. The city said it was listed as a duplex but wasn't licensed as a rental.
Also the lease he signed was for the entire building but the listing to sell shows it as a duplex. The people downstairs moved in, stayed two weeks and left because they tried to move another person in and didn't sign the lease and decided to go elswhere. Now I realize why I never wanted to get into this business.

 

[FarmerJ]

The downstairs tenants moving in then out is the LLs fault only , The LL should have gotten a signed lease as well as first and deposit and maybe even LAST months rent upfront in cash or certified cashiers check so nothing could bounce and tenant would have a reason to stay. Licensing is not a big issue , its more common than most people think, Even some smaller citys like suburbs require rental lic too. If your city came along and contacted him get a rental lic he could do it easy enough. ITS when a LL ignores a licensing requirement that the licensor becomes Irate and might condemn the unit until it is licensed. BTW the Realtor listing has little to do with the whole situation. A real estate listing is just a advertisement that says in the fine lines that they are not responsible for errors in the listing. If a buyer were serious about using the entire property as a investment they likely will re check every thing from how the structure is zoned ON down to it having its own tap card for sewer and water. If the structure sold tomorrow morning bottom line is that if the tenant is a month to month renter proper notice must be given to change any thing in the current lease. If its a long term lease ( like a whole year) LL is obligated to uphold all terms of the current written lease . INC inheriting responsibility to properly handle deposit disposition when tenant has paid one to the former owner.