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Updated over 3 years ago on . Most recent reply presented by

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Daniel Dube
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Lease termination with Sale of property

Daniel Dube
Posted

Hey guys,

I know that a lease follows the property when it changes ownership, but what if the previous owner's lease says the lease is void upon sale? Is this legal, or do I still need to stick to his terms until their lease expires?

Thanks,

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Matt Devincenzo
  • Investor
  • Clairemont, CA
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Matt Devincenzo
  • Investor
  • Clairemont, CA
Replied

Likely not enforceable. A contractual clause that violates local law is unenforceable and therefor of no effect. Generally residential leases and local laws etc are going to protect the 'unsophisticated' party here which is the tenant. This is true even in a very LL friendly state since it's fairly universally recognized that tenants are generally going to have to accept whatever lease they are given. Hence the 'boundaries' on what a LL can legally do/not do. If this was a commercial lease then the rules may be different since both parties are more sophisticated and likely had more of an opportunity to negotiate the final lease conditions. 

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