What Happens to the Current Lease if I Sell the Property in Missouri?
Full Question:
Answer:
A lease is a contract between the landlord and tenant. The lease generally may not be terminated solely upon the sale of the premises unless the lease so provides. Generally, when a new landlord enters, the lease is assigned to the new owner, and they are bound by the terms of the lease already in existence.
In some cases, a landlord may negotiate with the tenants for an early termination when the new owner doesn't wish the tenants to remain. The tenants will typically want to receive some form of compensation for the early termination.
Sales contracts are a matter of arms length negotiation. A sales contract may include a provision assigning the current lease to the new owner. If the house is sold and the lease is terminated early due to no fault of the tenants, the tenants may seek damages for breach of contract.