Finding out your rental property has been sold can be alarming. But the good news is: a sale does not automatically end your tenancy. Here's what you need to know.
The Golden Rule: Your Lease Survives the Sale
In virtually every state, when a property is sold, the new owner inherits your lease. This means:
- Your lease terms remain the same
- Your rent stays the same (until the lease ends)
- The new owner must honor all lease provisions
- You cannot be evicted simply because the property was sold
This applies whether you have a fixed-term lease (e.g., 12 months) or a month-to-month agreement.
What About Month-to-Month Tenants?
If you're on a month-to-month lease, the new owner can eventually end your tenancy — but they must follow the same notice requirements as any landlord:
- California: 30-60 days (plus just cause requirements if covered by AB 1482)
- New York: 30-90 days depending on length of tenancy
- Washington: Just cause required
- Oregon: Just cause required for tenancies over 12 months
Your Security Deposit
The previous owner must either:
1. Transfer your security deposit to the new owner, or
2. Return it to you directly
In most states, the previous owner must notify you in writing about what happened to your deposit. The new owner takes on all the same obligations regarding the deposit — return deadline, itemized deductions, etc.
What Can the New Owner Change?
During your current lease term:
- Almost nothing. They're bound by your existing lease.
When your lease ends or renews:
- They can propose new lease terms (including rent increases, with proper notice)
- They can choose not to renew (subject to just cause laws where applicable)
- They can change rules not specified in the lease (with proper notice)
Owner Move-In Evictions
Some new owners want to move into the property themselves. In states with just cause eviction laws:
- California: Owner move-in is a valid no-fault reason, but the owner must provide relocation assistance (typically one month's rent) and the unit must actually be used as their primary residence for at least 12 months
- San Francisco: Additional protections apply, including right of first refusal if the owner later re-rents
- Oregon: Similar protections with relocation requirements
- New York (rent-stabilized): Very limited owner move-in rights
Red Flags to Watch For
- New owner immediately issues a notice to vacate — Check if it complies with your state's notice requirements and just cause laws
- New owner says your lease is void — It's not. Leases survive property sales.
- New owner demands a new security deposit — They shouldn't, if the previous deposit was transferred
- New owner changes locks or shuts off services — This is illegal "self-help" eviction everywhere
What To Do When You Learn About a Sale
- Request confirmation in writing of the sale and new owner information
- Keep a copy of your current lease — It's still valid
- Confirm your deposit status — Ask the old owner in writing where your deposit went
- Document the property condition — In case the new owner tries to blame existing issues on you
- Know your state's laws — Particularly just cause eviction and notice requirements
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Landlord selling your building? [Ask RentCounsel about your specific rights](/try?q=My+landlord+is+selling+the+property.+What+happens+to+my+lease%3F) for statute-backed guidance.