Sell Rental to Tenant - Lease Addendum?

[Troy P.]

Hi all,

I'm planning to sell one of my properties to the current tenant at some point near the end of the lease period.  I'm curious what others have done and what is the typical sequence of events in this situation.

I'm in the middle of a 6 month lease with it ending this summer.  Should I first get a signed contract with the tenant, then create a lease addendum with the projected closing date and modify the lease end date for the closing date?  Then, if that is not met, create another addendum as needed.  This is my first attempt at this and I'm obviously trying to avoid the tenant living on the property with no lease.  Any advice is appreciated.  Thanks!

[Theresa Harris]

Quote from @Troy P.:

Quote from @Theresa Harris:

Have a lawyer draw up a sales agreement. As part of that agreement, have a closing date that both you and the tenant agree to.  On the closing date, state that the rental lease is automatically terminated and the security deposit they gave you is returned in full.

If there are problems with the closing, you need to decide if you want to extend the lease or not.

 Would this be a title company attorney or someone else?  Is this required to provide to the title company or is it just a good practice? 

 I'm in Canada, so things are different.  But I'd go to the same type of lawyer I'd go to if I was buying or selling a property and wanted them to handle the paperwork (eg mortgage, title, etc).