Landlord Selling the Building: Your Lease Doesn't Change, But Everything Else Does

Your Actual Exposure: $15,000

A $1,800/mo landlord changes lease doesn't create $1,800/mo in liability. It creates $15,000 in total exposure across rent, personal guaranty, restoration, and every other clause your landlord drafted to protect themselves — not you.

Where $15,000 Comes From

What Most People Miss

The security deposit transfer. When a building sells, your deposit should transfer to the new owner. But if it wasn't properly transferred or held in escrow, it can get lost in the transaction. Get written confirmation from the new owner that they have received your deposit.

Key Risks in This Scenario

• New owner not required to renew the lease when it expires — you may lose housing with no option to stay
• Security deposit held by old landlord may not transfer correctly to new owner
• New owner may want to redevelop or significantly renovate — just-cause eviction protections vary by jurisdiction

How to Reduce Your Exposure

• Get written confirmation from new owner of deposit amount received
• Document all lease terms in writing before the sale closes

Frequently Asked Questions

Can a new landlord increase my rent immediately after buying the building?

Only if your lease permits it. An existing lease runs to its expiration at the agreed rent. The new landlord inherits the lease terms. Rent can only increase at renewal, per the lease terms or local law.

Do I have to sign a new lease when the building sells?

No. The new owner takes the building subject to all existing leases. You can continue under the existing lease through its term. Signing a new lease is a choice, not a requirement.

What happens to my security deposit when the building is sold?

The deposit should transfer to the new owner. In some states, the seller is required to transfer it. Request written confirmation from the new owner within 30 days of the sale closing that they hold your deposit.

Can the new owner evict me to renovate the building?

Only with just cause in cities that have just-cause eviction protections. In other jurisdictions, the new owner can decline to renew the lease when it expires and require you to vacate. Check local law.

What should I do when I learn my building is being sold?

(1) Read your lease for transfer provisions. (2) Request new owner contact information from current landlord. (3) Send written notice to new owner with your name, unit, lease terms, and deposit amount. (4) Get written confirmation of deposit transfer.