justdred

Selling House - 3 year Lease

6 posts in this topic

Hello,

 

I just received notice from my landlord (a property management company) yesterday, that my house is going to be sold.  I signed a 3 year lease in October of 2016 that does not expire until September of 2019.  I have been living in the property for 9 years now, and my original landlord sold my property (which was 1 of 5) to the current property management company.  My then lease was taken over by the management company and after my assumed lease with them ended, I signed a new one year lease.  After the year lease ended, with the next renewal I signed a 3 year lease.  After reviewing my lease, there is no "exit clause" for the management company or me regarding the sale of the house.

 

The options I received with the notice were:

A.  To buy the home

B.  To transfer to another one of their properties and receive a $500 credit

 

However, after doing some internet research I believe that I am within my rights to have the full term of my lease carried out within the property.  When I called to speak to someone from the company, they confirmed that yes, the property was going through the sale process and that while I can try to stay for the term of my lease, the new owner is not bound by the lease and I would have no legal recourse with the new owner or the property management company if I were to be evicted.

 

Just a little background, I am not in a financial position to up and move to another property, I am not interested in buying the house, and the properties that they have available (they only have 3) are in bad neighborhoods. While on the phone with the rep, I also brought up another option - for them to buy me out of my lease for $5,000 which would cover the cost of having to move to another property; but she was unsure of the protocol for that.  Also, at this point, I am leery of moving to one of their properties because this same thing may happen to me again.

 

Please help as I cannot find truth to the claims made by the management company - and I believe they are attempting to violate my rights as a tenant.  

 

A couple questions, is the management company legally bound to present the fact that there is a tenant in place with a signed 3 year lease to the potential buyer? And how can I find out the information regarding the sale to assure that I have been represented/included?

 

Any and all help is truly appreciated!

 

Edited by justdred
Added additional information

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33 minutes ago, justdred said:

the new owner is not bound by the lease and I would have no legal recourse with the new owner or the property management company if I were to be evicted.

 

You need to read your lease to see if there is any provision addressing termination of the lease upon sale of the property.

 

If there isn't, they may be lying to you.

 

The buyer buys the property subject to any existing obligations and must honor the lease for the duration.

 

I suggest you write back to whoever is lying to you and say that. Also say that you will be explaining that to anybody who comes to look at the property and you'll be providing a copy of the lease to them.

 

33 minutes ago, justdred said:

I also brought up another option - for them to buy me out of my lease for $5,000 which would cover the cost of having to move to another property; but she was unsure of the protocol for that.

 

Another lie. The protocol is simple. They write you a check for $5000 and present it to you, prior to you moving, along with a signed agreement absolving you of any further obligation as of your move out date.

 

33 minutes ago, justdred said:

is the management company legally bound to present the fact that there is a tenant in place with a signed 3 year lease to the potential buyer?

 

Well, maybe not "legally" but there can certainly be legal consequences for concealing it when the new owner figures it out. Unless a potential buyer buys sight unseen it's likely that a buyer will figure it out during the initial stages of the process, especially if you are on hand to tell him/her.

 

33 minutes ago, justdred said:

how can I find out the information regarding the sale to assure that I have been represented/included?

 

Other than prospective buyers visiting the property, you aren't going to know what is happening nor does the landlord have any obligation to include you though it would be foolish not to.

 

I am not able to cite you any law to back this up. There are a couple of attorneys here that may have some comments so keep checking this space.

 

Meantime, I think it would be a good idea for you to consult an attorney of your own. A letter from your attorney may well get the management company to either back off or negotiate better terms for you.

 

 

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Thank you for the reply.  I am hoping to not have to go the legal route, but I may have no choice.

 

An additional note, there is no "exit clause" in my lease for me or the management company regarding the sale of the property.

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10 minutes ago, justdred said:

 

 

there is no "exit clause" in my lease for me or the management company regarding the sale of the property.

 

Good. Now all you need are some legal citations to include in your response.

 

I just thought of something else. It would be a good idea to record your lease at the County Recorder's office. This would make it public record so that any lender or title company doing a title search can find it. That would give pause to anybody needing financing or a title policy.

 

Also check the property address with the County Assessor to make sure that the actual owner of the property is who you think it is as there is some doubt as to the veracity of the management company.

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1 hour ago, adjusterjack said:

You need to read your lease to see if there is any provision addressing termination of the lease upon sale of the property.

 

If there isn't, they may be lying to you.

 

1 hour ago, adjusterjack said:

Another lie. The protocol is simple.

 

A bit presumptuous to call these lies.  It may be that the owner/landlord is mistaken about the law.  Also, just because you think it's a "simple" procedure to do a buyout doesn't mean the person to whom the OP spoke knows anything about this (or whether there's even a "protocol" in place for something like this).

 

 

1 hour ago, justdred said:

is the management company legally bound to present the fact that there is a tenant in place with a signed 3 year lease to the potential buyer?

 

Probably.  You can google "florida real estate disclosure requirements" or something like that and find out.  Of course, if any prospective buyer wants to inspect the premises, the existence of a tenant should be rather obvious, and the buyer can then inquire about the tenant's lease status (including asking you if you're present at the time).  Also, recording your lease in the county where the property is located so that it turns up when a title search is done by the buyer or the buyer's lender probably would be a good idea.

 

 

1 hour ago, justdred said:

And how can I find out the information regarding the sale to assure that I have been represented/included?

 

I don't know what you mean by "represented/included" or what information you're seeking -- especially since, at the moment, it doesn't sound like there's a buyer in place.  All you can do at this point is inquire of your landlord.

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1 hour ago, adjusterjack said:

 

I just thought of something else. It would be a good idea to record your lease at the County Recorder's office. This would make it public record so that any lender or title company doing a title search can find it. That would give pause to anybody needing financing or a title policy.

 

 

This is a great idea, thank you. 

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