When you rent a home, there’s always a chance that your landlord will decide to sell it. Upticks in the rental management in Colorado market, substantial offers on the property or even boredom are sometimes all the incentive they need to put up the for sale sign. This, of course, affects you—even though you don’t really have a say in the final decision.
You will have plenty of questions in this situation. You will want to know details like when they expect to close, where to send your rent check and whether you have to move. You may need to cooperate with showings and schedules for inspections. This isn’t the time to panic; it’s time to make sure you understand your legal rights and responsibilities.
If your landlord tells you that the property is for sale, the first thing to do is check your lease. Under Colorado law, the lease is a binding agreement between two parties. That means that neither you nor the landlord can break the terms of the lease without the approval of the other party. Read carefully the clause that describes how to terminate the agreement.
When someone buys the property you’re currently living in, the new owner must honor the original terms of the lease, including the rent amount and termination date. This gives you the right to keep living there until the end of the lease—unless your lease specifically says something different or you negotiate a new agreement with the new owner.
Until the property officially changes hands, keep paying rent on time to your landlord. Wait until you receive a written notice to send the payment to the new owner. Real estate contracts fall through for many different reasons, and a potential sale is not a sale until the seller and buyer leave the closing table.
Your original landlord can do one of two things with the security deposit: transfer it to the new landlord or give it back to you. Landlords still have the right to deduct money allowed by the original lease, though. For example, if they find out during the home inspection that there’s a hole in the wall or missing window treatments, landlords can use the security deposit to cover the repair or replacement cost.
If it’s time to move because your landlord decided to sell the property, let us help you find a new place to live. Call Woodruff Property Management today to speak with someone who understands rental management in Colorado.