Leases and deposits
What happens to my lease if my landlord sells the building?
Updated By the Housing Rocket moderators
Short answer
In most cases your lease stays in effect. The new owner takes over the property subject to existing leases, so your rent, end date and other terms carry over, and your security deposit should be transferred to the new owner or returned to you. Foreclosure works differently, but tenants still have some protection.
After a sale, ask for the new owner's name, contact details and payment instructions in writing. Scammers sometimes pose as new owners to collect rent, so confirm any change with the previous landlord or the property manager before paying anyone new.
Things that often come up:
- Showings before the sale: the landlord can usually show the unit with proper notice, as with any other entry
- Your deposit: ask the previous landlord to confirm in writing that it was transferred, and the amount
- Buyout offers: a new owner may offer cash for you to leave early. If you have a lease, you are free to negotiate or decline
- Month-to-month tenants: the new owner can usually end the tenancy with proper notice
If the building goes into foreclosure, federal law generally lets tenants with a genuine lease stay until it ends, or requires advance notice before they must leave, and some states add more protection. Keep paying rent as your lease requires, keep receipts, and ask a legal aid office if you receive notices you don't understand.
Want the whole picture? Read Renting Your First Apartment: Applications, Leases and Move-in Costs.