Can my commercial lease be voided if the property is sold?
When a commercial building is sold, the tenets do have a list of rights that will often protect them from eviction. Usually, the act of selling the property does not warrant evicting a tenant. Here’s what to expect if you are a tenant in a building that is changing ownership.
You can still be faced with higher charges or modifications to the building’s appearance or functionality depending on the language in your lease, even though the new owner is generally required to abide by the terms and conditions of an existing lease.
The lease shall be first and foremost honored. The tenant has the right to occupy the unit for the final nine months of a one-year lease if the property is sold with nine months left on the lease. Although rents are typically given to the new owner, he or she is still liable for paying rent and upholding the terms of the original lease. The lease’s other terms and conditions continue to apply up until its expiration. The tenant may be asked to leave when the lease expires so that the new owner can take possession of the apartment or use the property as they see fit. The tenant’s claim to a return of the security deposit is unaffected by the sale of the property as well.
The tenant’s claim to their security deposit is unaffected by the sale of the property as well.
Fewer rights will be granted to the tenant under month-to-month leases than under longer leases. The lease may be ended at the new owner’s discretion. An appropriate notice, typically 30 days, must be given, though. It is against the law for landlords to evict tenants using self-help measures like turning off the utilities or changing the locks.
Additionally, before a realtor shows the property, renters are entitled to “fair notice.” According to California’s “right of possession,” a landlord cannot enter a rental property without the tenant’s consent. According to California law, a fair notice period is 24 hours. As a result, the owner must give the renter at least 24 hours notice if they wish to exhibit the property themselves or with the help of a broker. The owner must make a reasonable effort to deliver the notification to the tenant. The notice, however, need not be in writing as long as the owner has informed the tenant that he or she wants to sell the property at some point in the previous four months.