I own a condominium unit in which I have a tenant under a lease. If I sell the unit does the new owner have to honor the lease?

When a person owns real estate they have the ability to affect it by granting mortgages, granting easements, obtaining variances and surrendering possession by way of a lease or a tendency at will. One can even have involuntary liens placed on the properties such as a tax lien or an attachment. Whenever someone sells the property the new buyer steps into the seller’s shoes subject to all of the liens and encumbrances on the property and all occupancies in the property. So, the long answer to your short question is that the buyer will be subject to the same obligations and liabilities that you have at the time the buyer purchases the property. In fact, the buyer will be subject to any defenses or claims that the tenant would have against the original landlord. If, for instance, the apartment had violations of health laws the tenant would have a right to offset against rent owed the landlord  any reduction in value due to the impaired habitability of the unit. The tenant could assert those rights at any time prior to the time the tenant vacates the unit or even thereafter. The tenant could not assert claims against the new buyer arising out of torts that the prior owner may have committed such as a claim for injuries as a result of a hidden defect on the property. So normally a buyer will want the seller to make warranties and representations relative to the lease and any claims that a tenant may have arising out of the lease which the buyer may have to deal with after the buyer purchases the property. In commercial property the buyer will generally ask for what is known as a tenant estoppel letter which will spell out any claims the tenant may have and, if there is a bank involved in the purchase,  it will ask for a Subordination, Non-Disturbance and Attornment Agreement which generally will include provisions that any past claims for violations of the lease by the landlord are waived by the tenant.
 

If you have questions about this or any other legal matter, please contact Tom Bennett at (617) 531-6574 or tvb@barronstad.com.

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