How do I terminate tenants lease to sell before the bank forecloses?
Full Question:
Answer:
When a property is sold, the lease is generally assigned to the new owner unless the lease contains a term allowing for cancellation of the lease upon a sale. A new owner is usually bound by the lease and can only tenants if there a breach of the lease by the tenant. Nor can a new owner raise the rent in the middle of an existing lease because he has an obligation to follow both the length and terms of the existing lease. Even if the new owner was not informed of existing leases, most state laws presume that the new owner should have known about them. In order to terminate the lease early, it will be a matter of negotiation. The tenants will typically want some form of incentive for an early termination. I suggest contacting a local attorney who is a skilled negotiator in landlord tenant matters.