I'm going to gues that she does't have the right. I would have to see the lease.
Note that I'm not an attorney, but the sale of the asset shouldn't qualify any disregarding of the lease, which is also an asset.
I've often heard people say hey will move and don't. Sometimes I wish they would :). The point is that a good introduction should cure the problem.
Also, it might be worth pointing out that just because you buy the house you may not automatically buy the leases as well. I think it's safe to add a clause saying the leases are part of the deal.
I would call Buddy Marks if you are concerned. He is a local re attorney. If you don't already have his number, try (614) 258-9300
If you find out that any of this is wrong advice, and it might all be totally wrong, please post a follow up.
Unless Ohio has some strange special case law, she is bound by that lease regardless of who owns the house...the lease follows the property.
If the property was owned by an LLC partnership, it wouldn't even be a consideration for her to move since instead of selling the house...you sell the LLC. If she has a lease agreement with the LLC, and the LLC still owns the property, everything else is just "background noise".
both the tenant and the new landlord would need to adhere to the existing lease.
That said if she really wants to bolt I don't see to much stopping her. If I am the seller or the buyer it doesn't make sense to me to give her a hard time. Let her go, keep her security deposit and move on to a new one.
Thank you all for the advice. We're the seller in this scenario, and we already have the house in contract to a buyer who is expecting to buy it with one side rented... so that's where this gets iffy. We also haven't gotten the appraisal yet, and we're wondering if it would hurt the value if we don't have the actual rental income on one side.
Unless your state is a weird one she cannot just opt out of the lease because the property is sold. Of course you could let her out of it if you feel thats the best idea but I would recommend talking to her and trying to figure out whether or not you can convince her to stay. After all, while she's under lease the new owner can't hike rents or anything like that.
What's odd, is that most tenants fear the new landlord not letting them stay...even though the lease has to be honored by the new landlord.
@Joe Villeneuve I know. We're pretty sure it's because she doesn't like the area... she was very pushy about signing the lease despite our warnings that the area was still very much up and coming. Hopefully this will all be over soon :)
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!