Hello,

When I sell a rental property and tenant decides not to pay the rent with new owner, am I in risk for any type of lawsuit by new owner? Thanks in advance,

Bo

You shouldn't unless the tenant wasn't paying BEFORE the sale and you failed to disclose that fact. But if the tenant just decides to stop paying after the property has changed hands that shouldn't be your responsibility.

Am I required to voluntarily provide that info?

Hello h:

The buyer will know that the house is rented and that he's going to be the new landlord. That's a material fact that isn't going to be hidden from him.

However, if he doesn't know the landlord business very well, it's not up to you to teach him. So, no. You don't need to tell him anything about your tenant, unless the guy is a flake and doesn't pay his rent.

excon

I agree with excon, that you don't need to tell him anything about the tenant except what affects his status as a tenant. Therefore if he was in arrears prior to the sale, then you needed to disclose this. If you knew the tenant was a druggie that was trashing the place, you needed to disclose things like that.

But as I said, if the tenant was in arrears and you did not disclose that fact, then you probably can be sued over it.