When a property is sold while it has a tenant in occupation, a few questions are usually raised. For example, what happens to the tenant if the landlord sells the property? The issue of what rights the tenant will have with regards to cancelling the lease or enforcing it also comes into question.
While all landlords are well within their rights to sell their properties at any time, the tenant’s rights to his lease remain in place before any rights of the buyer, and the tenant can remain in the property until his lease expires.
Some concerns might be raised if the property is sold and the lease passed from one landlord to another.
However, the conditions of the existing lease do not fall away, and if it has not been cancelled, both the tenant and the new landlord are bound by these until such time that the lease is renegotiated or expires.
What needs to be done, however, is that the deposit held by the previous landlord must be transferred to the new owner, and the same rule would apply as with the previous landlord; that he must hold the deposit in an interest-bearing account in favour of the tenant, to be refunded to the tenant with interest when he moves out.
On the other hand, if the tenant decides he would no longer like to live on the property if there is a new landlord, the conditions of the lease could also prevent him from leaving the new landlord in the lurch and cancelling the lease.