Can a property management company buy a contract then require me to sign a different contract?
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Can a property management company buy a contract then require me to sign a different contract?
I own and am renting out a house. The company I have a property management agreement with is going out of business and is trying to sell the agreement to a different property management company. This new company is pushing me sign an entirely new and different agreement instead of just a contract modification with their name. Can the new company require me to sign a new agreement? It seem like they would be required to uphold the original agreement they purchased.
The original agreement states nothing in regards to what happens if the company goes out of business.
Thank you
Asked on October 2, 2017 under Real Estate Law, Colorado
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
If the agreement does not state that it is not assignable (i.e. that it cannot be sold or otherwise transferred), it may be sold to the new company, but what they are buying is the agreement *as is*: if they take assignment of (purchase) the existing agreement, they are bound to it and it remains in effect for the duration of its term. (After it expires, they can put forward a different agreement.) They could not force you to sign a new agreement when they took over an existing one--they could ask you to, but doing so would be voluntary on your part.
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