I signed a 3 yr lease with an option to buy my current place of residence. I just received notice that the owner is trying to sell the home via shortsale. The realtor advised me that they have a buyer and a closing date of 2/28 and that I need to be out of the home by then. If the sale does go through on 2/28 doesn't the new owner have to give me some kind of notice and a time to vacate the premises. Also does the "Tenant Protection Act in Foreclosure" give me some rights?

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Originally Posted by lucas91

If the sale does go thru on 2/28 doesn't the new owner have to give me some kind of notice and a time period to vacate the premises.

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Hello l:

Nahhh. He can't evict you at all. He has to abide by your current lease and that includes your option to buy. If the house were foreclosed upon, your lease would be void. But, under a short sale, it's not.

excon

Even if they intend to occupy the property as their primary residence? I have my doubts that this is their intention but this is what the realtor told me. I picked up on a comment the realtor made that he has sold multiple properties to this buyer.

Hello again, l:

It doesn't matter what their intention is. It only matters what your rights are, and what you should DO about them. In my view, you should do NOTHING at this time, because doing ANYTHING puts you in jeopardy.

Now, I don't know WHY the buyer doesn't know that he's going to be obligated to you.. But, it's not up to YOU to tell him. If you do, and he bolts, your landlord will go into foreclosure and your lease will end.

I'd wait to see how it works out, but I'd be nimble.. IF the deal happens, and IF he tries to throw you out, THAT'S the time to assert your rights. Unless your state has some special rules for short sales, you'll win.

excon

I am not nor will I do anything. They did send a home inspector to the house today and the appraiser will be out within the next week or so. I just don't want the sherriff to show up and tell me I have to get out and have nowhere to go.

Hello again, l:

From a legal perspective, a short sale is no different than ANY sale. Therefore, your lease remains in effect... What's different here, is that it's a RENTAL that's being sold short. Most short sales happen to owner occupied homes... That would be my guess as to why nobody noticed. The Realtor has no clue about the law.. Wasn't it he (not your landlord) who gave you a verbal (not written) notice to vacate, ALL contrary to law?? I think he did.

In any case, there WILL be a legal procedure and ample notice BEFORE a sheriff shows up. When you receive notice, write your new landlord a certified letter. Include March rent and confirm that you have a security deposit of $___ that he's now responsible for, whether he received it from the seller during closing. Include a copy of his agreement with you...

Of course, this will probably come to a head before he closes. I don't know.

excon

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Originally Posted by excon

... The Realtor has no clue about the law.. Wasn't it he (not your landlord) who gave you a verbal (not written) notice to vacate, ALL contrary to law??? ...

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Agreed. All one has to do to be come a realtor is take what is, in effect a survey course on real estate law. They take this and think they are some sort of real estate lawyer. Doesn't work that way. :rolleyes:

So in short I should just sit tight until the shortsale closes and I receive some sort of notice. Then send a check to the new owner with explanation of my security deposit along with a copy of my lease?