In 1 yr lease home put up For Sale during lease, 4 months remaining on lease, leased through management company. Management company came to house and deliveried 30 day notice, clause on 30 day notice says "as you know house has sold" & "owner is compensating you $500" & "all other areas of lease must be followed thru on tenanats part", ie; paying for cleaning company to do house and carpets? (bye the way we were not aware of home selling) Is this legal? We asked for termination of lease by owner and they said we don't need it, 30 day notice covers that? Is this true and what do we need to protect us? Is compensation adequate? Do we have to follow through on remainder of lease clauses?

Read your lease very carefully. Is there anything in there that gives the landlord the right to terminate if they sell the house?

If the lease does allow the landlord to terminate upon sale of the home then yes, what they are doing is legal.

But if the lease does not contain a statement that specifically allows the landlord the right to terminate the lease if the house is sold, then the new owner has to honor your lease until the remaining 4 months is up. Or you could always tell the landlord that you're willing to move out earlier but $500 is not enough compensation and they'll have to pay you at least 1 or 2 months worth of rent plus your moving expenses plus your full security deposit.

If you are able to reach an agreement with them then make sure you get everything in writing and signed by the landlord.